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Social and Economic Development of the Republic of Karelia in 2012

  Economic Policy


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One of the spheres of industrial policy of the Government of the Republic of Karelia is development of metallurgy and engineering industry.

Petrozavodskmash JSC continued implementation of the project on development of production of equipment for nuclear industry of Russia within the scope of which a new site for manufacturing cases of steam and gas generators opened in 2012. It will enable expansion of the nomenclature of products and increase of production. In the end of the year of account the first case of steam and gas generator was commissioned. Production of equipment for pressurised water reactor 1200 for the Leningrad atomic power station-2 was mastered.

In 2012 Petrozavodskmash JSC has performed a large-scale order for Tatneft Inc. having manufactured a column for petrochemical complex Taneko (Tatarstan), as well as some new orders for pulp-and-paper mill. The vacuum capstan case for paper-making machines was shipped to Metso Paper, Finland.

Implementation of the joint project of Petrozavodskmash JSC and Petrozavodsk State University Creation of Resource-Saving Manufacture of environmentally compatible transportation and packing complete sets for storage and transportation of spent fuel continues. Refining of technology and production of pre-production model TUK-146 intended for carrying out of acceptance tests is in progress. At positive results of tests this construction may be approved for use in nuclear industry.

In 2012 the Government of the Republic of Karelia and Onego Tractor Plant Ltd. have concluded the Agreement on social and economic partnership focused on development of Karelia's potential in view of the necessity of renovation and replenishment of the park of logging, industrial, road-building, municipal and agricultural machinery in the republic.

In order to promote further development and organization of new kinds of modern, competitive equipment for forestry works the enterprisecontinued work within the contract concluded with the Ministry of Industry and Trade of the Russian Federation on performance of research and developmental works, development of the design and organization of production of a modern complex of machines including: felling-and-bunching machine, delimber-bucker, and logger. According to the plan of performance of the contract batch production of six new modifications of caterpillar machines Onezhets with drilling-crane, welding and other process equipment, including the new model of family of caterpillar machines — Onezhets 392 with swiveling tipping box was launched in 2012.

According to the order of the Government of the Russian Federation N1528-r of August 25, 2012 Onego Tractor Plant Ltd. is included in the list of manufacturers of fire-fighting machinery and equipment where the state customers purchased the abovementioned products for the state needs through placement of order at sole supplier in 2012.

With active assistance of the Government of the Republic of Karelia the project on creation of the surface effect vehicle building union ORION located within the territory of the former Avangard Ship-Building Factory was developed.

Problems of Onego ship-building factory concerning formation of the package of orders have begun since the end of 2010. When the proprietor has changed in 2011 the enterprise has received the order to manufacture five tankers. However, due to intense situation on crediting this project was reduced to three vessels. In October, 2011 the enterprise has won the competition to build of two ice reinforcement buoy crafts in 2012.

In the period of account intense situation concerning loading of ship-building capacities Onego ship-building factory Joint-Stock Company remained unchanged. In view of the complex financial situation according to the decision of the Arbitration Court of the Republic of Karelia competition management concerning the enterprise was introduced in November, 2012 until May 15, 2013. In order to renew industrial activity the Government of the Republic of Karelia negotiates with potential foreign investors.

Complex position has developed in 2012 in metallurgical industry. Wдrtsilд hardware plant Joint-Stock Company is implementing the Program of capital improvement of production for 2011-2015 providing closing of the etching unit and acid facilities. Production of hardware in 2012 has decreased by 3.3% in comparison with 2011. With transition to new technology in 2013 restoration of volumes of production will be provided.

Petrozavodskmash Foundry Ltd. during all 2012 struggled with of production capacities that has not allowed the enterprise to achieve the planned targets on production and shipment. At the same time in 2012 the factory has successfully performed filling of the 90-ton case of the transportation-packing complete set TUK-146 intended for storage and transportation of spent fuel.

According to long-term program of United Company RUSAL on stage-by-stage closing of inefficient capacities by 2015 it is planned to curtail production of primary aluminium and close reduction area in Nadvoitsy Aluminium Smelter Inc., the branch of SUAL. The enterprise takes measures to increase production of new kinds of products more in demand in the market: aluminium-silicon alloys and aluminium-magnesian alloys in small ingots. The complex producing alloys is commissioned at the factory, in 2013 it is planned to achieve certification regarding automobile alloys. However, decline of aluminium market value, high rate of the cost to produce, basically because of growth of electricity rates, had a negative impact on work of the branch of NAZ-SUAL.major overhaul of electrolyzers at the factory has stopped.

In order to assist NAZ-SUAL Inc., the branch of SUAL, concerning deterioration in value of transmission tariff the Government of the Republic of Karelia has adressed to Prime Minister of the Russian Federation D.A.Medvedev is.

According to the information received from the Ministry of Energy of the Russian Federation, according to the assignment of Prime Minister of the Russian Federation D.A.Medvedev a temporary time scheme of delivery of electric electric power at a discount was established for NAZ-SUAL Inc., the branch of SUAL.

The Government of the Republic of Karelia has forwarded offers on NAZ-SUAL Inc., the branch of SUAL, to the working group established at the Ministry of Industry and Trade of the Russian Federation concerning development of the program of increase of the depth of processing primary aluminium at Russian factories. Work on stabilization of economic situation at the factory is in progress.

In order to develop building industry and provide planned rates of growth of housing construction in the beginning of 2012 the Program of development of enterprises of the industry of building materials and industrial housing construction of the Republic of Karelia through 2020 was adopted.

As a result of implementation of the program actions in 2012 production of ceramic not fire-resistant building bricks has grown 1.7-fold to the level of 2011.

On results of 2012 the index of industrial production in the republic has made 99.7%, including 103% in extraction of minerals, 92.2% in processing industries, 117.6% in deneration and distribution of electric power, gas and water.

In comparison with 2011 it has been generated more electric power (126%), more iron-ore pellets (102%), nonmetallic building materials (111%), wood chipboards (104.4%), papersacks (104.9%) was produced. At the same time production of saw-timber, plywood, pulp, papers, tractors has reduced.

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Created: August 14, 2013. Last updated: September 17, 2013.
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