Construction of Glassworks (Float Process)

Description of the Project
Construction of the float process glassworks manufacturing 600 tons of glass a day; the project is the first one of this kind implemented in the Southern Federal District of Russia. Its goal is to supply the region´s construction industry with high-quality glass. The estimated volume of investments equals 181.21 million Euro. Financing of the project is shared, with the initiator investing 25% of the sum and borrowing the rest (75%) of the money. The modern manufacturing machinery requires the investments of 67.12 million Euro. American companies - PPG Industries (occupying 20% of the US glass market) and its partner Henry F. Teichmann Inc. - have been chosen as the foreign partners and engineering services providers. Under the contract, PPG Industries grants the glass production license (including tinted and special types of glass), and HFT acts as a general contractor in acquisition and installation of the units, providing turn-key services - from the drafts to the launch of the facilities. Output of one furnace output is 175 thousand tons of glass a year. The types of glass produced in the context of the project include energy-saving, sunlight reflecting and tinted glass. Employment capacity of the plant is 240 employees.

Initiator of the Project
ZAO Caspian Float Glass (successor of ZAO Evrosteklo)

Location:
Kumtorkalinsky district, settlement of Tyube. The site is of industrial type.

Current Status
The designs are finished.
There is an equipment and engineering supply contract made with Henry F. Teichmann Inc.
The construction has begun.

Sources of Financing
Own funds - 25%.
Borrowed funds - 75%.

Payback Period
7 years.

Implementation Term
3 years.