2012

Power-saving compact fluorescent lamps production in Nerekhta

municipal district of Kostroma region

2

Content

Partition Slide number

I. Project target 3

II. Enterprise’s location 4-5

III. Advantages of energy-saving compact fluorescent lamps production

6-7

IV. Energy-saving lamps market 8-11

V. Economic efficiency of project realization 12-16

I. Project targets

3

Major targets of energy-saving compact fluorescent lamps production in Kostroma region are:

•increasing of the Kostroma region industrial and economic level by the organization of large high-technological production

•organization of the integrated enterprise with own half-finished products production and their total processing into marketable products

•production of competitive and import substituting products

•increasing of the share of Russian marketable products for internal and external markets

•creation of new working places and social infrastructure objects

- favourable investment climate;

- advantageous geographical location;

- availability of transit transport network;

- low level of social conflicts.

II. Location

Landmark’s address: Kostroma region, Nerekhta district, Emsnenskoe village.

• Medium pressure gas pipeline is 150 m away from land plot’s border.• Transformer substation with capacity of 35 kW is 2 km away from land plot’s border.• Water supply is 2 km away from land plot’s border

II. Location

• five times less energy consumption (at the same luminous flux) and service life is about 6-10 times longer than incandescent lamps’ ones. Moreover, energy-saving compact fluorescent lamps emit several times less heat than incandescent lamps

• in energy-saving compact fluorescent lamps it is used an electronic balance, there is no light flow flicker. They work well with low voltage of 180 V and under

• compatibility with widely used infrastructure created for incandescent lamps

• one energy-saving lamp of 20 V during its service life allows to reduce twice the emissions of carbon dioxide and to 7.5 kg of sulphur dioxide into the atmosphere

III.

From 2011 the law, which forbids incandescent lamps of 100 V and more, came into force. As recommendations it is written that from 2013 there would be forbidden incandescent lamps of 75 V and more, from 2014 — incandescent lamps of 25 V and more.

III. Advantages of energy-saving compact fluorescent lamps production

Technological process of energy-saving compact fluorescent lamps production consists of number of technological operations, which run on production line with high level of machine technique. This is a series of machines united by electronic control devices in one technological line, which all operations are performed in automatic mode – from download of glass tube pieces to checked and marked lamp output.

III. Advantages of energy-saving compact fluorescent lamps production

Russian energy-saving lamps market is filled with products of foreign manufacturers, such as «Philips», «General Electric» and «Osram». According to estimates of «Philips» company, for the full transition to energy-saving lamps of Russian production it is necessary to build more than 60 plants with the annual capacity of 12 million lamps.

IV. Energy-saving lamps market

energy-saving lamps42%

58%

World market of lamps

According to Rosnano’s estimates, today energy-saving lamps take about 42% of world market of lamps. Furthermore compact fluorescent lamps take 38% of all energy-saving lamps market meanwhile LED lamps take only 6%.

IV. Energy-saving lamps market

In 2011 there were delivered 233,7 million of energy-saving lamps with total value of 160,2 million USD, that was less than in 2010 to 21% by natural expression and to 25% by cost one.

Compact fluorescent lamps were the main volume of import of energy-saving lamps in 2011 by cost expression and they took about 66%.

In 2011 Russian Federation supplied for international market with 21,56 million of energy-saving lamps with total value of 14,88 million USD, that was more than in 2010 to 21% by natural expression and to 20% by cost one.

Two-socle fluorescent lamps were the main volume of export in 2011 by cost expression and took 53%, compact fluorescent lamps took about 22%.

IV. Energy-saving lamps market

1 2

Производство и экспорт 15 154.4

Потребление и импорт 21.56 233.7

25

75

125

175

225

275

325

375

425

Total amount of energy-saving lamps in 2011

1 2

Экспорт и прозводство 4.74 55

Потребление и импорт 7 154.4

25

75

125

175

225

Compact fluorescent lamps in 2011

Production and consumption imbalance

IV. Energy-saving lamps market

• Project involves construction of production and subsidiary premises with total area of 8 500 m2

• Planning annual production capacity of compact fluorescent lamps – 28 million pcs.

• Planning period – 7 years including equipment manufacturing and construction period (9 months)

• Investments for project realization – 2 billion roubles including 1,6 billion rubles of borrowed funds

• Payback period - 4 years

Brief information about the project

V. Economic efficiency of project realization

ProductMeasuremen

t

1st year

2nd year

3rd year

4th

year5th year

6th year

7th year

Compact fluorescent lamps

thousand pcs. - 5600 28000 28000 28000 28000 28000

ProductMeasure

ment1st

year2nd year

3rd year

4th

year5th year

6th year

7th year

Compact fluorescent

lampsthousand roubles 0 364000 1820000 1947400 2083718 2229578,26 2385648,74

Production plan, thousand roubles

Realization plan, thousand roubles

V. Economic efficiency of project realization

№ Staff unit

Measu-

rement 1st year2nd

year3rd

year4th

year5th

year6th

year7th

year

1 Leaders people 5 7 7 7 7 7 7

2Administrative

personnel people   30 40 40 40 40 40

3Productionpersonnel people   163 353 353 353 353 353

  TOTAL people 5 200 400 400 400 400 400

V. Economic efficiency of project realization

Personnel will be 200 people by reaching for 50% of project capacity. By the third year it will be 400 people.

Personnel Remuneration of labour fund1st

year2nd

year 3rd year 4th year 5th year 6th year 7th year

Leaders 3000 3210 3434,7 3675,129 3932,388 4207,65519 4502,19106Administrative

personnel 0 6120 8976 9604,32 10276,622 10995,986 11765,705Production personnel 0 39120 99360 106315,2 113757,26 121720,272 130240,692

Total 3000 48450111770,

7 119594,649 127966,27 136923,914 146508,588

Average monthly salary, RUR

5000020000,

1923000,

2924000,92 26000,66 28000,53 30000,52

V. Economic efficiency of project realization

Average monthly salary will be 25860 roubles (excluding the first year of project realization)

Indicator 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year

VAT0,0 163800,0 327600,0 350532,0 375069,2 401324,1 429416,8

Profit tax0,0 82477,1 128391,1 149864,2 173520,2 199156,4 292690,7

PIT345,1 5573,9 12858,6 13758,7 14721,8 15752,3 16855,0

Property tax

0,0 0,0 0,0 0,0 0,0 0,0 0,0

Land tax214,5 214,5 214,5 214,5 214,5 214,5 214,5

Social payments

921,0 14874,2 38784,4 41499,3 44404,3 47512,6 50838,5

TOTAL PAYMENTS

1480,6 266939,6 507848,6 555868,7 607930,0 663959,9 790015,4

V. Economic efficiency of project realization