expanding into Chelyabinsk. The sector is growing at twice the Russian average with demand for security and automation services leading the charge.
The 3rd representative of the British delegation: Did the agriculture sector undergo
a massive reconstruction?
The 3rd representative of the Chelyabinsk region: I’d like to emphasize that the agricultural complex of the Chelyabinsk region is on a roll. It not only manufactures enough products to satisfy the needs of the region, but some products, such as macaroni and poultry, are exported to other Russian regions and Yuzhuralhlebtorg even export crops to the global market. The most famous companies are Urals Broiler, Ravis and Makfa.
Part 2. Presentation of the British Economy
(The representatives of the Chelyabinsk region have just finished their descriptions and are going to listen to the representatives of the British delegation).
The presenter: I’d like to thank the representative of the Chelyabinsk region for your detailed description. Perhaps, we could return to the questions later. Now, dear guests, could I ask for your presentations? Can you tell us some words about British economy in general and about your company? What kind of enterprise are you going to make a contract with?
The 1st representative of the British delegation: Yes, with pleasure. We are meeting today to make a contract with one of the Chelyabinsk region enterprises. But I think, I should start with the economic profile of the United Kingdom. Don’t hesitate and interrupt me at any time if you have questions. OK? Britain lives by manufacture and trade. Its economic system is based on private enterprises and private supplies of capital. The export of goods and services is accounted for one quarter of Gross Domestic Product. Government policy is aimed at encouraging and expanding the private sector. Economic objectives are stimulating enterprise and encouraging the creation of wealth.
With the extraction of oil, coal and natural gas the country is sufficient in energy. A great variety of industries is developed in Britain, for example, heavy and light industry, chemical, aircraft, automobile and many others. Britain produces and exports
31
cotton and woolen goods, leather goods, articles made of synthetic materials, electrical, automobile and high quality expensive goods.
Britain has to import raw materials (copper, zinc, uranium ore), timber, cotton, fruit and farm products. The greater part of land is used for cattle and sheep breeding and pig rising. Among the crops grown on the farms are wheat, barley and oats.
Britain mostly produces articles requiring skilled labor, such as precision instruments, electronic equipment, chemicals and high quality consumer goods.
The main industrial centers are London, Leeds, Glasgow, Liverpool, Birmingham, Manchester, Newcastle, Lancashire, Midlands.
The presenter: Thanks. Perhaps can I ask for your questions?
The 1st representative of the Chelyabinsk region: I wonder if you’d mind telling
us about large industrial companies in Britain.
The 2nd representative of the British delegation: Large industrial and trade companies of Great Britain occupy the most important place in the structure of British economy. They determine the general efficiency of the national economy. One of the most important particularities is the high activity of large industrial British companies on the foreign market. Britain has a large share of export of industrial products, a significant volume of foreign investment, developed network of foreign branches. Many British companies depend on foreign investment.
Large industrial companies dominate on the home market. They have a high degree of flexibility and adaptability to the changing conditions of the market. The largest industrial monopolies of the country are "Imperial Chemical Industry", or ICI, "Unilever", "British Leyland". More than 200 thousand people are employed in these companies. The industrial enterprises are mostly concentrated in the industrial belt, including counties, situated in the London area and the West Yorkshire region. The largest industrial regions outside the belt are the Southern part of Wales, the northeast of England and the central part of Scotland.
The presenter: Thank you. Perhaps, the representatives have any other questions?
32
The 2nd representative of the Chelyabinsk region: Can you give us some
information about your company?
The 3rd representative of the British delegation: Well, Midland Resources Holding Ltd was founded in 1997 and it has shares of the largest machine-building enterprises in Europe and CIS countries. Machine-building is our core business. Our head offices are located in Toronto and London and our representatives are in Moscow, Kiev, Shanghai and Istanbul. We sell 3-5mln tones of products annually. Last year our turnover was $600 mln. Nowadays we need new sophisticated equipment for our plant and we know that some enterprises of your region produce it. So, that’s the reason why we came here.
Part 3. Presentation of the Chelyabinsk Enterprises
(The participants are ready to present their reports, the representatives are ready to listen and make notes).
The presenter: Thank you for your presentations and now let’s take the first item on agenda. We’ll listen to the representatives of our enterprises. I invite you to take the floor. Who is going to start?
1st participant: I am a representative of the Kyshtym Machine Building Factory. The Kyshtym Machine Building Factory is one of the largest machine building factories in the Chelyabinsk region. Today the factory is one of the few companies in Russia that produces mining and drilling equipment and large diameter valves. The Kyshtym Machine Building Factory produces more than 30 types of machinery and more than 200 types of spare parts. Equipment produced by the factory is used by mining companies all over Russia to construct water development facilities and to extract mineral resources. Some of the products manufactured by the factory are exported to Slovakia, Poland, the Ukraine, India, Vietnam, Uzbekistan, North Korea, Egypt and Algeria.
The presenter: Thank you. Do you have any questions or remarks?
33
The 1st representative of the British delegation: When was your factory founded?
1st participant: Our factory |
was founded in 1757 by Nikita Demidov and today it |
is one of the few enterprises that |
produces mining and drilling equipment. |
The 2nd representative of the British delegation: What is your product range? |
|
1st participant: The factory produces more than 30 types of equipment and more than 200 types of spare parts. It supplies the most prominent enterprises and construction sites of our country. It has more than 700 consumers. All equipment meets the requirements of the domestic and foreign market.
The 3rd representative of the British delegation: Do you export your production?
1st participant: The factory supplies the domestic market as well as foreign countries.
Many foreign companies prefer our equipment to its analogues. It allows using the equipment without the additional costs for its maintenance. It is used in hydro technical constructions and in the extraction of natural resources.
***
The presenter: Well, It’s very interesting! Can I turn to the next presenter?
2nd participant: I am a representative of the Stankomash factory. The Stankomash factory is another important factory. It has a complete production cycle and delivers its products to more than 30 companies in Russia as well as to the CIS countries. The Stankomash ranks as one of the top five Russian manufacturers of products for the fuel and energy industry. It is an integrated company that has production facilities to cover all the production cycles including steelmaking, metal casting, open die forging and stamping. The metallurgic shop of the factory produces ingots, castings, blanks, forgings and other types of metal blocks manufactured out of carbon and high-alloy steel.
The 1st representative of the British delegation: OK, thank you very much. Do you implement new technologies?
2nd participant: Nowadays the enterprise is rapidly implementing new technologies.
The 2nd representative of the British delegation: You supplied military complex, didn’t you?
34
2nd participant: Yes, we had some contracts with Poland, Iraq and Iran and the CIS
countries.
The 3rd representative of British delegation: But today you produce mainly for fuel and energy industry, don’t you?
2nd participant: We produce for fuel and energy industry, but the range of our products is much wider. We produce also military hardware, mining equipment. We also supply railway and metallurgy sectors.
The 1st representative of the British delegation: Why is the Stankomash so popular
among consumers?
2nd participant: The Stankomash Factory is the unique enterprise. Thanks to its own metallurgical complete product cycle it has great opportunities to produce a wide variety of items.
***
The presenter: Thank you very much. Could you give us a brief outline of your
company Mrs…?
3rd participant: I am a representative of the Ufaley Metallurgic Machine Building Plant. The Ufaley Metallurgic Machine Building Plant develops and produces all types of machinery and equipment for metallurgic companies that produce coke chemical, sintering, blast-furnace rolled products. The plant delivers its machinery and equipment to nearly all large metallurgic companies in Russia and is one of the few firms that is able to export to Great Britain, Belgium, Germany, Italy, Finland, the Ukraine, Belarus, Kazakhstan and China.
The 1st representative of the British delegation: You produce mainly for metallurgical complex, don’t you?
3rd participant: Our plant produces equipment and spare parts for all departments of
the metallurgical complex.
The 2nd representative of the British delegation: Well, it is very good. What about
your export?
3rd participant: We export our products to Great Britain, Belgium, Germany, Italy, Finland, the Ukraine, Belarus, Kazakhstan and China. Last year we also had contracts with Turkey and France.
35
The 3rd representative of the British delegation: What is your range of products?
3rd participant: The Ufaley Metallurgical Machine Building Plant is the leading enterprise producing metallurgical equipment such as sintering equipment, coke producing equipment, blast-furnace equipment, rolling equipment and steel founded equipment.
***
The presenter: Thank you. I think it would be helpful if you could put us in the picture of your company Mr…
4th participant: I am a representative of the Electromashina factory. The Electromashina is a major Russian company that produces electric equipment, control systems, gas-turbine power units that are also used in military hardware. Apart from that, the Electromashina also makes sophisticated medical equipment, controllable electric drives, electric systems and other devices.
The 1st representative of the British delegation: Thank you very much. Your products are used in military hardware, aren’t they?
4th participant: Yes, for example, last year we had some contracts with Poland, Iraq, Iran and exported military hardware to the CIS and some foreign countries. The Electromashina is the enterprise of a defense industrial complex with 49% of the state stakes, that fact guaranties necessary stability.
The 2nd representative of the British delegation: What is the volume of export?
4th participant: Last year it was about 36%, this year we are going to increase it by
10-15%.
The 3rd representative of the British delegation: What is your marketing policy?
4th participant: Our prices are the most attractive for consumers, and the chains of distribution are the shortest. We offer the most beneficial conditions to our constant clients. By the way, all our deals are made on behalf of the government; this fact raises the status of our partners and strengthens their positions on the market.
***
The presenter: Thank you very much. I know we have the representative of the Miass machine Building Factory here. Is that right?
36
5th participant: I am a representative of the Miass Machine Building Factory. Machine building factories, being a part of military industrial complex, have been encouraged to widen the range of their non-defense products. The Miass Machine Building Factory is such a company. The factory is a state unitary enterprise controlled by the Russian Federal Space Agency. It is fitted with high-precision equipment to perform the most difficult working operations in the field of machine building and instrument making which it is now used to build commercial products.
The 1st representative of British delegation: What is the production output of
machinery and equipment?
5th participant: I think the figures speak for themselves. This year industrial production output enjoyed a 12,5% growth compared to the same period last year. Nowadays it is 87%.
The 2nd representative of the British delegation: Do you supply military complex?
5th participant: Yes, we supply military complex, but produce non-defense items also. We have high-decision equipment for different technological operations in the field of machine building and instrument making. The Factory has a great technological potential, based on the newest scientific and technological achievements of defense industry.
The 3rd representative of the British delegation: What is your product range?
5th participant: High-quality equipment and technologies, military hardware, corpora for the sea ballistic rockets, monitoring systems for military ships.
***
The presenter: I’m sure our today’s meeting is very useful and productive. The next representative in our agenda is Metran Industrial Company.
6th participant: I am a representative of Metran Industrial Company. The beginning of the 21st century saw Western governments and capital starting to participate in activity of Russian companies that used to be secret. In July 2004, Emerson Process Management, an American company, became an investor and a strategic partner of Metran industrial company. Together the companies developed, produced and provided after sales services for intelligent measuring equipment that is used in a wide variety of industrial applications. In 2004 an Engineering Centre was set up on the territory of Metran as a part
37
of the Emerson’s Global Engineering Chain that has its branches in the USA, Belgium, Sweden, Germany, China and India.
The 1st representative of the British delegation: OK, thank you very much. What is
your marketing policy?
6th participant: We offer not just products and solutions; our goal is to make cooperation comfortable for our customers. Company possesses a wide network of regional offices. Metran and Emerson consultants work in 25 cities of Russia and CIS
( the Ukraine, Belarus, Kazakhstan and Azerbaijan).
The 2nd representative of the British delegation: What services does your Service
Center provide?
6th participant: Our Service Sector Center provides installation, supervision and commissioning of sophisticated equipment, warranty and post warranty repair, equipment upgrade, measurement instrumentation calibration.
The 3rd representative of the British delegation: Are your products certified?
6th participant: All our products and systems have required certificates of Quality Management system. We believe that product quality is not a coincidence, but the result of systematic and targeting approach, and we continually develop this area.
***
The presenter: Thank you. Now a representative of ITEC Company is invited to take the floor.
7th participant: The Identification Technologies Company (ITEC) was set up with financial support of the American government under a Russian – American program. ITEC participates in technical assistance provided by the US government to Russian nuclear enterprises. Today the company delivers equipment and provides services to enterprises controlled by the Ministry of Nuclear Energy.
The 1st representative of the British delegation: Thank you very much. Where is
your headquarter situated?
7th participant: The company’s headquarter is located in the closed town of Snezhinsk. It is one of the youngest towns in the Chelyabinsk region and until recently was named Chelyabinsk -70. It is located on the picturesque Sinara Lake. AllRussia R&D Institute of Applied Physics, which is the Russian Federal Nuclear Center, is the
38
major enterprise on the territory of Snezhinsk. Russia’s nuclear shield was developed here. Today the history of nuclear weapons is represented in the town’s unique museum of nuclear weapons.
The 2nd representative of the British delegation: Do you get a financial support from the American government?
7th participant: Yes, as our company was set up with the financial support of the American government we get its financial and technical assistance.
The 3rd representative of the British delegation: What about your products and
deliveries?
7th participant: We produce a wide range of products, including technologies for materials and goods automated marking and identification, timekeeping system, access control systems, nuclear materials detection systems and deliver them to many CIS countries.
***
The presenter: That’s all? OK. Let me just summarize the main points of our meeting. The Chelyabinsk region has a great industrial potential. It has a wide range of enterprises of the machine-building sector which have a long history and its own specialization. All the enterprises presented today play the important role in the economy of our region. Thank you very much for your presentations. Now, we shall ask our guests what company they are going to make a contract with.
The representatives of the British delegation: We should say thanks to everybody for the reports, we liked all the companies presented and you should know that it is very difficult for us to make a decision. We were impressed by the potential of your region so much and no wonder why the Ural Region is often called “the backbone of the country’s economy”. But after a short discussion we’ve decide d to sign a contract with the Ufaley metallurgic machine–building plant, because the mac hinery and equipment produced are especially suitable for our company.
The representative of the Ufaley metallurgic machine-building plant (3rd
participant): (after signing a contract) Thank you! We are honored and we are looking
forward to our further long-term collaboration.
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Приложение 1
Перечень основных предприятий машиностроительного сектора Челябинской области
The major enterprises of the machine-building sector of the Chelyabinsk region and their product range
|
Company |
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Main types of products |
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1. Electromashina |
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Electric equipment, control system, gas-turbine |
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power units. |
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||
2. Kyshtym Machine Building Factory |
Drilling rigs, |
underground |
drilling |
rigs, |
mine |
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|
electric |
locomotives, |
down |
hole |
pneumatic |
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hammers, |
auxiliary |
|
mine |
hoists, |
scraper |
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loading hoist, portable drilling machines. |
|
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3. Miass Machine Building Factory |
Equipment |
|
for |
confectionery |
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factories, |
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equipment |
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for |
breweries, |
equipment |
for |
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petrochemical |
factories, |
heating |
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systems, |
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electric |
equipment |
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for |
automobiles, |
quartz |
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glass. |
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4. Stankomash |
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Equipment to go through mine fields, thread- |
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cutting lathes, equipment for mining and oil |
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and gas industries. |
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5. Ufaley Machine Building Plant |
Equipment |
used by sintering, coke chemical, |
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metallurgic, blast-furnace, metal rolling and |
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glass melting factories. |
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6. Metran Industrial Company |
Intelligent |
measuring |
equipment |
for working |
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processes |
automation: pressure |
transmitters, |
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temperature |
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transmitters, |
flow |
meters, |
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metering |
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systems, |
thermal |
meters, |
level |
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gauges, |
metrological |
equipment, |
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functional |
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equipment, |
modules |
and |
systems |
based |
on |
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these modules. |
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7.The |
Identification |
Technologies |
Technologies |
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for |
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material |
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and |
goods |
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Company |
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automated |
|
marking |
and |
identification; |
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timekeeping |
systems; |
access control systems; |
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vehicles tracking systems; vehicles radio |
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frequency |
identification |
system; |
nuclear |
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materials |
detection system. |
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40