The Official Karelia
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Social and Economic development of the Republic of Karelia in 2009

  Modernization of the Economy

    and Construction

    Small And Medium

    Industrial Policy

    Industrial Policy

    Forest Resources

    Mining Industry


    Energy Complex

    Agroindustrial Complex


    Natural Resources
    and Ecology




The state policy in the field of engineering industry and metallurgy was focused on support of revival of industrial economics.

In the second six months of 2010 the Government of the Republic of Karelia has decided questions negatively influencing the activity of Onego Tractor Plant Ltd. that has allowed the enterprise to achieve the scheduled operating mode. Pre-production models of modern logging equipment, assembled within the framework of the contract concluded with the Ministry of Industry and Trade of the Russian Federation concerning performance of research and development were sent for testing. The contract in 2012 stipulates organization of batch production of a modern complex of machines comprising of a felling-and-bunching machine, a delimber-crosscutter and a logger in Onego Tractor Plant Ltd.

Besides, a new skidder Onezhets-300 which in the future might completely replace serial machines on the basis of TLT-100 was sent for testing.

On October 5, 2010 the system of industrial heating was solemnly started at the enterprise that has allowed to assemble machines disregard of strong frosts and to deliver equipment to consumers during the period of the most active logging.

Within the scope of cooperation between the Government of the Republic of Karelia and Petrozavodskmash Joint-Stock Company the draft agreement on cooperation with the Russian Federal Atomic Energy Agency was prepared. Now the project is approved by the parties and will be signed soon. On results of 2010 the total amount of products shipped by Petrozavodskmash Joint-Stock Company has grown 2.3 times to the level of 2009, and orders of the Russian Federal Atomic Energy Agency have made about 70% of the total sum of the package of orders of the enterprise.

In October, 2010 the joint project of Petrozavodskmash Joint-Stock Company and PetrSU on the subject of Creation of resource-saving production of ecologically safe shipping packaging sets for storage and transportation of the spent fuel became one of the winners of the open public competition of organizations for the right to recieve grants for implementation of complex projects concerning creation of hi-tech production held by the Ministry of Education and Science of the Russian Federation. Within the framework of the project Petrozavodskmash Joint-Stock Company will produce economy shipping packaging sets with cases made of ductile cast iron. Implemantation of the project will allow to create 36 new workplaces by 2015, and also to strengthen positions of the enterprise in the home and foreign markets.

The Nadvoitsy Aluminium Smelter under the postcrisis conditions at the continuing reform of electric power industry has managed to intensify the volume of production of aluminium and complete restoration of production of aluminium in the 4 case - with a start of 34 idle electrolyzers, as well as to recommence major overhauls of electrolysis baths suspended since 2008.

Currently, the operating United Company RUSAL considers implementation of the project of production of new kinds of aluminium alloys with higher added cost and an innovative component by the NAZ-SUAL branch.

Wärtsilä hardware plant Joint-Stock Company in 2010, in the context of deficiency of credit resources and multidirectionality of conjuncture of the hardware market, has continued implementation of the program of modernization, expansion of the assortment and increase in outputs, having in September established a draw bench for production of 3.0-6.0 mm wire. It has allowed to create 5 additional workplaces and to receive a 8,600 tons a year gain of capacity of the enterprise, or 7.8%.

Petrozavodskmash Foundry Ltd. has managed to master new kinds of large-capacity machine-tool castings for production of heavy hi-tech and science intensive processing centers under the order of Ivanovo heavy machine-tool plant Inc.

Development of production of electric equipment, electronic and optical equipment was caused by the activity of enterprises of the Finnish concern PKC Group OYJ in territory of the republic. To support efficiency of industrial activity and increase competitiveness the management of the concern has reorganized the enterprises of Kostomuksha by merging Elektromeka Ltd. with Elektrokos Ltd., and Karhakos Ltd. and PKC Group Pskov Ltd. with АЕК Ltd.

Since January 1, 2011 organizations producing electric machines and electric equipment including АЕК Ltd. and Elektrokos Ltd. have profits and property tax exemptions.

Measures taken by the Government of the Republic of Karelia and the management of the Finnish concern have allowed to address the consequences of the crisis substantially, to stabilize the situation and to increase production volumes considerably.

The Republic of Karelia possesses its own industrial base of building materials which includes enterprises producing modular ferro-concrete products, concrete panel constructions, heat-insulating material, prefabricated window and door units made of PVC or wood, mineral granules to surface roofing materials, extraction and production of nonmetallic building materials, production of apartment houses made of heat-insulated wall panels with wooden frames, building bricks, etc.

The following facilities producing building materials were commissioned in 2010 in territory of Petrozavodsk:

  • a factory producing modular ferro-concrete products, concrete panel constructions, commodity concrete, mortar at the capacity of 20,000 cubis meters of production a year;
  • production of wooden window and door units with double-glazed windows on German technology at the capacity of 12,000 square metrs of production a year.

A competitive trend is prduction of effective heat- and sound-proof material on the basis of polystyrene, as well as implementation of a large investment project of production of heat-insulating plates made of rock wool (analogue of Rockwool, Paroc).

Works on organization of production of heat-insulating plates on the basis of basalt and sandwich-panels with a filling of home-produced rock wool plates are conducted. Investment projects of construction of concrete and mortar unit and a shop of paving tiles, production of glued designs and log houses of shaped lumber and calibrated logs are implemented.

Technical support
Created: May 23, 2010. Last updated: May 31, 2010.
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