Industry

Industry

The distinctive feature of Krasnodar Territory industrial infrastructure is a high degree of its enterprises concentration in several centre’s — in the cities of Krasnodar, Novorossiysk, Armavir, Tuapse, Tikhoretsk, Belorechensk, Kropotkin, Yeisk, Goriachy Kliuch, Mostovskoi, Seversky and Apsheronsk districts. The enterprises of food industry are available practically in all municipal territories of the region.

The situation in industry features the restoration of production following the period of recession and transition to the stage of growth and stabilization. The stabilization of situation in industry towards the development of high-technology, science intensive and competitive productions is favored by the enterprises restructuring and orientation to the needs of the Territory, raising competitive capacity of products, development of sales market. It is the regional state order that has become efficient to load the managing subjects.

The most significant place in the structure of industrial complex is filled by the food processing industry to form over 45% of industrial products volume.

Krasnodar Territory yields more than third of the Russian Federation sugar sand, oils, canned fruits and vegetables volume, about 40% of concentrated fruit juices, 100% of canned infant food meat, 6% of hard cheeses, meat and variety meats, canned dairy products. In industry more than one thousand enterprises function.

The increase in products output is provided through the buildup of the total agricultural production, greater volumes of the livestock goods production and ousting imported goods from the market. The part of no small consequence has been played in this direction by the line extension and by improvement in~ the outward of goods and by the reorientation of population’s demand to the foods of domestic growth.

In meat industry more than half of products is manufactured by three largest meat processing and packing factories: «Tikhoretsky» factory is the only enterprise in the country for production of canned infant food meat, «Sochinsky» and «Krasnodarsky» are the primary producers of sausage goods.

In dairy industry the leading enterprises are as follows: OJSC «Milk processing factory «Timashevsky», Timashevsk town, it makes a speciality of the dairy products output in «TetraPack» package; CJSC firm «Kaloriya», Kanevsky district, turning out dairy products in modern package of great variety; CJSC «Syrodel», Starominsky district, and OJSC «Cheese-making factory «Kalininsky», Kalininsky district, producing rennet cheeses; CJSC «Briukhovetsky canned dairy products factory», Briukhovetsky district, producing dried dairy products; CJSC «Korenovsky canned dairy products factory», town of Korenovsk, that makes a speciality of condensed dairy products output.

CJSC «Labinsk oil-extraction plant», town of Labinsk, the produce of which meets the world standards of quality, and OJSC «Integrated fat-and-oil works «Krasnodarsky», city of Krasnodar, the only enterprise for production of margarine products and soap in Krasnodar Territory, fall into the primary managing subjects of the fat-and-oil industry.

In canning industry the largest manufacturers of the canned fruits and vegetables are «Interagrosistemy» LLC, town of Belorechensk, OJSC «Slaviansky canning factory», town of Slaviansk, OJSC «Krymsky canning factory», town of Krymsk.

The industry of Kuban was established and is developed on the basis of own natural and resource potential, the formation of which is favored by unique conditions for plant-growing and livestock farming, availability of natural gas and oil, natural mineral waters, oak and beech forests.

In production of confectionery OJSC «Galan», city of Kurganinsk and OJSC «Confectionary «Armavirskaya», city of Armavir are the leading enterprises; in production of tobaccoes and caporals — OJSC «Philip Morris Kuban», city of Krasnodar and in production of mineral water — CJSC «Mineral waters factory «Goriachekliuchevskoy», city of Goriachy Kliuch.

The sugar industry comprises 16 sugar plants to function with the scheduled daily sugar-beet processing capacity of 60 thousand tons and with imported raw-sugar one of about 10 thousand tons. The domestic raw-material base of the industry is formed by about 400 collective and farming beet-seeding enterprises.

The fishing industry of Krasnodar Territory enjoys great potential of development: more than 100 enterprises of different property forms, the labor force of which is more than 10 thousand strong. The fishing fleet of the industry is formed by Novorossiysk fishing company «Novorossiyskrybprom», Union «Krasnodarryba» and by 15 private companies, working fishing grounds in the world ocean, in the Azov and Black Sea. The conditions were created for hatchery rearing of fish — annually over 3 milliard youngsters of pike perch and roach and 17 million pieces of the sturgeons are planted into water bodies.

Of extensive line is production of commercial fish foodstuffs, including canned fish. The output exceeds 95 million conventional cans. The processing capacities enable to produce annually about 80 thousand tons of fresh raw fish and frozen half-finished products. The annual production of biological resources in the water bodies of Krasnodar Territory and in ocean runs as high as 50 thousand tons. The economizing supported by sufficient provision of finance will bring additionally up to 30 thousand tons of fish.

The major problems of the industry are depreciation and obsolescence of fishing vessels. The capital investment requirement for the purchase of vessels totals 212 million rubles. The solution of the problem could become the purchase of vessels by leasing for the period of eight years at least.

The developed viniculture brought to the wide network of the wine industry enterprises, the quality of which products is highly estimated at the international and interregional competitions, to appear in Krasnodar Territory The total number of enterprises, involved in processing of grapes, ranged up to 28 units. Annually they process from 110 to 145 thousand tons of this culture, that is over half the All-Russian volumes. 16 agribusiness enterprises have the complete cycle of wine production — from grapes growing to bottling of wine.

The production of wine materials in the industry runs as high as 10 million decalitres annually (of which 2.5 million decalitres of champagnes). The classic aged champagne «Abrau-Durso» produced at «Abrau-Durso» winery in Novorossiysk is taken to be a unique product in Russian market. Provision is made for increase in the output of up to 2 million bottles by 2005 annually. The funds requirement for expansion of production comes to 600 million rubles.

It is distillation and alcoholic beverage industry,

in which 4 and 18 enterprises respectively function with annual production capacities of 4.2 and 10 million decalitres of spirit and alcoholic drinks, that features high degree of integration into economic complex of the region.

Mechanical engineering and metalwork are represented by more than 100 large-scale and medium-sized enterprises, as well as by the subjects of small business in railway, agricultural, chemical and petroleum machinery industries, in electrical manufacturing and machine-tool building industries, instrument engineering, in machines and equipment repair, having total labor force more than 35 thousand strong.

The enterprises Of the industry produce:

  • In the city of Krasnodar:
    • OJSC «Compressor works» — compressors and spare parts;
    • OJSC «Krasnodarsky ZIP» — measuring equipment, tools and consumer goods;
    • «Sedin» enterprises group — cutting machines;
    • OJSC «Krasnodarselmash» — chains and transporters for combines;
    • OJSC «Saturn» — solar batteries and nickel-hydrogen batteries for spacecrafts and electrical power systems;
    • ОАО «Scientific and production company «RITM» — means of radio communications and radiotelemetry, radio metering equipment;
  • in the city of Armavir:
    • FSUE «Armavir electromechanical works» — electric switch mechanisms, dwarf signals and signals on post, cable connectors;
    • «Armavir gas-fittings works», LLC — water heaters;
    • OJSC «Armavir electrotechnical works» — small-power electric motors, products for electrical power systems, consumer goods (electric mixers, coffee grinders);
    • CJSC Kubanzheldormash» — hydraulic equipment;
    • in the city of Novorossiysk:
    • CJSC «Novorossiysk works «Krasny dvigatel» — parts of the cylinder-pis-ton group, braking systems for train units. The unique automatic casting machine, providing the environmentally friendly production of complicated casting of the world standard quality, was installed at the works with participation of American firm CMI;
  • in the town of Tikhoretsk:
    • OJSC «V.V.Vorovsky Tikhoretsk engineering plant» — railmotor cars, internal combustion engined railcars and permanent-way machines for repair and operation of railway tracks. The produce of the plant gained the certificate, attesting its conformity to the requirements of the world quality standards;
  • in the town of Yeisk:
    • FSUE «570th aircraft repair works» — repair of the aviation engines of modern aircrafts (MiG-27, MiG-29, SU-22, IL-76, etc.). This enterprise is Krasnodar Territory administration 2002 prize winner in quality;
    • OJSC «Attraction» — production of various attractions and side-shows for parks and recreation zones;
  • in Apsheronsk district:
    • OJSC «Khadyzhensk engineering plant» — equipment for gas-and-oil pro-ducing industry and circulation systems.
The industrial potential of Krasnodar Territory figures prominently among the regions of the South Federal District of Russia and is mostly promising in the view of the taxable base development. The complex involves more than 4 thousand enterprises, among which 700 are large and medium-sized ones. The industry occupies 30% in the output of products and services of the Krasnodar Territory primary economy branches and 16% in formation of the gross regional product.

Chemical and petrochemical industry of Krasnodar Territory comprises 13 large and medium-sized heavy-chemicals managing subjects, enterprises, producing mineral fertilizers, sulfuric acid, plastic goods, fiber glass materials, paintwork products, general mechanical rubber goods. Furthermore, the subjects of small business are at work. The total labourforce of the industry is more than 6 thousand strong.

The largest e7, the subjects of small business are at work. The total labourforce of the industry is more than 6 thousand strong.

The largest enterprises are engaged in production of the following: OJSC «Euro-Chim — Belorechensk mineral fertilizers», city of Belorechensk — mineral fertilizers and sulfuric acid; OJSC «Armavir rubbers factory», city of Armavir — sealing rings, floor carpets for cars, surgical gloves, catheters, football bladders; CJSC «Khimik», city of Labinsk — paintwork materials.

It is activity of timber, woodworking and pulp-and-paper industry enterprises that exerts immediate effect on formation of stable economy in Krasnodar Territory. The fourth part of its territory is wooded, that is 1.5 million ha of the state forest fund. Kuban is the only territory of Russia, where industrial wood cuttings are run. The periodic yield measures 889 thousand cub.m. Furthermore, the region is a raw-material base to fabricate the most valuable timber of fir, hardbeam, ash, chestnut and other species, growing in highlands and piedmonts.

Woods and the products of processing are one of the sources of currency proceeds from export, the volume of which currently accounts for 40 million US Dollars. The timber and woodworking industry is formed by the state forestry structures and by more than 350 enterprises of the various property forms, carrying out felling and deep processing of timber and manufacturing furniture. One of the leading enterprises in the industry is OJSC «Yug», Mostovsky district, running the complete cycle of works. The output of fiber boards amounted to as much as 7 million sq.meters annually. The investment project to establish the production of the aver-age-density fiber boards (MDF) was mapped out for realization.

CJSC «Rassvet», city of Apsheronsk; «Aida» LLC, town of Abinsk; «Garda» LLC, city of Belorechensk; «Goriachy Kliuch furniture plant», city of Goriachy Kliuch; «Епасо» LLC and «Furniture firm «Krasnodar», Krasnodar; OJSC «Chernomormebel», city of Novorossiysk; «Seversky ZFM», Seversky district may be possibly assigned to the largest and promising enterprises.

«The Kuban Union of Forestry, Timber-merchants and Woods-exporters» has been founded and functions. The most complicated problem is a low use of periodic yield in connection with operation of worn out machines and equipment, the replacement of which calls for large investment.

The pulp-and-paper industry is represented by the large enterprises with the total foreign capital participation located in the city of Timashevsk: CJSC «AR-Karton» produces packing materials from chrome-paperboard; CJSC «Okerlund & Rausing (Kuban)» produces flexible packing materials; CJSC «Neopack Kuban» produces packing materials from corrugated paperboard.

The enterprises of the building materials industry, that account for 8.5% of industrial production volumes and for 10% of labor resources, contribute greatly to economy of Krasnodar Territory.

Krasnodar Territory occupies the leading positions among the regions of the country in production of brick and gypsum-based materials and is one of the top ten subjects in the output of precast concrete, nonreactive aggregates, cement, asbestos-cement sheets and pipes. Many kinds of materials (cement, gypsum, gypsum plaster-boards, building common brick and clay tile, crushed gravel) meet the high certification requirements.

Some managing subjects carry out technical reequipment and master the new kinds of the products. As for novations, these are production of the dry building mixes (integrated works «Kubansky gyps-Knauf», Mostovsky district), shaped and molded brick (Novokubansky, Slaviansky and Gubsky brickfields), ultrathin electrodes, flux-cored wire and colouring additives for building common brick (Nllmontazh), polymer-bituminous materials (OJSC: «Kubankrovlya», Krasnodar).

The light industry of Krasnodar Territory integrates over 400 large, medium-sized and small enterprises of cotton, wool, sewing, knitting, tarring, fur, boot and shoe industry, the labor force of which is more than 15 thousand strong.

Beginning from 2000 the light industry ranked among the high-growth ones by the rates of gain in production.

Annually the two-thousand staff of CJSC «Alexandria» pushes up the volumes of production. The enterprise is equipped with the modern equipment of the leading world firms. The enterprise turns out male and female assortment wearing apparel of 30 names. The products of CJSC «Alexandria» features high quality and is in great demand both on foreign and domestic market.

They work out in the region the concept of industrial policy and the program of industry development for the period till 2006, the fulfillment of which will permit to optimize the structure of industries and enterprises, to provide the efficient employment of their potential production.

Included in successfully working enterprises of sewing industry is OJSC «Garment factory «Slavianskaya». It is a unique and single in Russia enterprise, producing special protective clothing for all industries of national economy: means of human skin protection, working clothing, suits for miners, fishermen, hunters and tourists. OJSC «Garment factory «Slavianskaya» mastered wide assortment of civil men’s, women and children wear. The enterprise completes the orders of the RF Ministry of Defense, Federal Frontier Service, Ministry of Home Affairs and other enforcement structures, that account for more than 90% of its total production output.

CJSC «Industrial Group ILS» is one of the largest wearing apparel producers in the south of Russia. The enterprise completes the orders of the RF Ministry of Home Affairs for sewing regulation uniform and making footwear. Furthermore, the firm is engaged in production of special working and jeans clothing.

Within recent years the light industry saw the appearance of some new successfully functioning enterprises: ASP «Shuttle» LLC, «Simon» LLC, «Garment factory «Aloir», «Sunrise» LLC, «Everest plus» LLC — in Armavir; «Roskor» LLC, «Yeisk manufacture» LLC — in Yeisk; affiliate of «Bris Bosphor» LLC — in Novorossiysk.

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