Russia, Moscow, VDNH, Pavilion 75
18 March 2020

Construction of lifting equipment as a pilot area for establishment of Eurasian company is discussed at the level of Eurasian Economy Commission

EAEC countries will establish the international companies in the area of energy accumulation, lifting equipment production, and logistic, - was said to “Izvestia” by Artak Kamalyan, the Minister for industry and agriculture of the Eurasian Economic Commission (EAEC). It is planed that the lifts will be produced under the common brand by Scherbinka elevator construction plant and Belorussian plant Mogilevliftmash. Allied products will be oriented to the domestic market, which potential is estimated in $ 3 billion, as well as for export, -  stressed the EAEC Minister.

Denis Manturov, the Industry and trade minister, said to “Izvestia” that implementation of the EAEC initiative will ensure the development of new technologies, for example, in the production of high-speed elevators. The countries can establish a service center for consolidation of facilities of the lift equipment production enterprises at the united market, to build a production cycle and to compete with foreign companies, developing new niches in Europe and Asia, said the head of the Industry and trade ministry.

 - To prevent the growth of imports, it is necessary to launch the new production facilities. According to our estimates, the overall demand in elevators to the end of 2025 will exceed 450 thousand units. The current capabilities of Russian producers jointly with Belorussian plant attain maximum 60 thousand units annually, - highlighted Denus Manturov. It is necessary to adopt a number of legislative documents to create and regulate the activities of the Eurasian companies.

General approaches to establishment of Eurasian companies will be discussed at Eurasian Economic Commission in the course of the project and analytic session, which was organized by the ECE Department of Industrial Policy in conjunction with the Business Council of the Eurasian Economic Union and the Eurasian Center for Integration Studies and Communications. EAEC manages the establishment of the Eurasian companies. Optional tools of the activities of these structures are discussed with the involvement of parties concerned from the countries of the Union, published at the website of the Eurasian Economic Commission.

Tigran Arutyunyan, Deputy Director of the EAEC  Department of Industrial Policy pointed out that the results of the study of international experience will allow to identify a number of potential benefits for Eurasian companies. “These include, for example, the development of exports and creation of conditions for strategic competitiveness of the Union multinational companies on the markets of the third countries, deepening of  cooperation and mutual investments, priority support at the national level, choice of EAEC economic jurisdiction", - said Tigran Arutyunyan.

According to Stanislav Naumov, the session moderator, Director General of NP Eurasian Center for Integration Studies and Communications", the leading business structures of EAEC see the positive effects from creation of Eurasian companies. As a tool the Eurasian companies can be applied in various fields, and each has its own specific features There have been already studded a number of industries, where the pilot project can be implemented. These are the jewellery industry, projects in the field of logistics centers, elevator construction, projects in creation of electricity storage systems and additive technologies. This list is by no means exhaustive, it can be extended in accordance to the business interests

“Eurasian company” is a legal form, which certainly has a great potential, including one in terms of branding of industrial products and subsequent promotion to the markets of the third countries. The first step has been made. Next, we expect a revised position of the business, and then prepare a "roadmap" for establishment of the Eurasian companies ", - said Tigran Arutyunyan.

As it has been previously reported, "Dom.rf" intends to upgrade Scherbinka elevator-production plant and further consolidation of elevators production. This message means, there are approved business and upgrading plans for refurbishment of the company production basis to implement the set objective.  Current capabilities of Scherbinka elevator-production plant is about 10 thousand elevators per year. Et us remind that JSC Dom.rf is the controlling shareholder of Scherbinka elevator-production plant.

Pursuant to information of "Gazeta.ru", Dom.RF is also considering the opportunities for construction of a new plant for production of elevators. According to interviewed experts, it is possible to speed up the process by both upgrading of existing production capacities and establishment of new enterprises. Financial development institute is considering launching of a new plant.

The issue of consolidation of elevator production facilities is incorporated within the action plan ("Roadmap") for the development of elevator industry in the Russian Federation (in the scope of implementation of the orders of the Government of the Russian Federation in accordance with the Protocol of the meeting at the Prime Minister Dmitry Medvedev of February 5, 2019 № DM P9-7pr, the meeting was held on the territory of Scherbinka ).

This plan has been approved by the Ministries of trade and construction of the Russian Federation. This plan shall be executed (co-executed) in consolidation by DOM.RF, VEB.RF and Promsyazbank. The consolidation declared purpose is reduction of financial risks of the elevator producers.

Let us remind of currently undergoing bankruptcy procedure with respect to Serpukhov elevator-production plant, which declared capacity is 12 thousand elevators per year. In addition, another leading player in the elevators market, Karacharov mechanical plant, is also in “negative” zone, currently the courts review the substantiations of two clams for its bankruptcy.

Source: www.lift-press.ru