Now we await the harvest sheep

This spring Cherkessk earned first stage wool processing factory. The company is unique for Russia — the first time in one place will be processed wool, to make out of it a woolen belt, and from that later — the yarn. Soviet industry giants perished due to specialization on one thing.

So far only launched the first phase of the factory — a department for processing wool and woolen bands (tops), which is used as a raw material for yarn. Next to the new shops have already cleared site for the production of yarn. If the first step required investment of 200 million rubles, the need for a second about 600 million And where to get the money with a turnover of 400 million rubles, and the leverage of $ 100 million? Getting the wool trade of the project "A Quest" in the program of priority investment projects implemented in the North Caucasus Federal District in accordance with the strategy of development of the county, has allowed the company to count on obtaining government guarantees, as this will give an opportunity to attract needed for the second phase of the project amount. However, in a conversation with the founder of investor Marat Halkechevym quickly becomes clear that no project was written under warranty, but on the contrary — guarantees found a project that is not by accident that is implemented in Cherkessk. Historically, this city provides marketing materials for the textile industry, worth about 5 billion rubles a year. Could only put here a modern factory to be closer to the market. Just one question on their project Halkechev now can not control — time needed to obtain the promised guarantees. It is impossible not to note the very image of our interlocutor. Marat Halkechev — PhD, at the Department of General and Special Management of the Russian Academy of Public Administration under the President of the Russian Federation. He easily attracts the resources of science, knows the situation on the world markets and thus it does business in Cherkessk, which as a result is seen as a full point on the economic map of the world. It is this view of the North Caucasus today and not enough. Element in the process chain

— Why did you decide to engage in the processing of wool?

— Company "A Quest" for more than 10 years of experience in the sale of wool and yarn. Generally resource Republic is wool, which is the raw material for the textile industry. But it is we who give it to a state of raw materials, because the wool to get from the producer to deliver to the processor from the processor — the consumer. We now buy from farmers wool, send it to Belarus, the Baltic States and Turkey for processing on commission, then again we bring here. Companies such as ours, in the region of a few. The population in the country are traditionally oriented to the production of knitwear, so business related to hair, there is widespread enough. In the Soviet period in Cherkessk worked a number of powerful industrial enterprises. And although in the availability of jobs have been far better, even if the people in our region earned money — formed group of citizens, which was called "homeworkers", they consisted in plants of public services. Between the arrival of the market large mass of people remained unclaimed — and home-based employment jerked repeatedly. Many people now survive primarily due to the fact that they take a yarn made of her products, which are sold throughout the country. But today it was the structuring of this field of activity. There are people who are engaged only in production, or only transportation, wholesale or small sales in the markets of Moscow, Novosibirsk, and the Black Sea coast. This is the full scale of the local industry.

— Its size can be estimated?

— Well, let’s try it together. In the year are consumed approximately 10.8 million tons of yarn. In terms of sales is one of the largest markets in Europe. At an average price of 200 rubles per kilogram we get two billion rubles. Given created in the republic of value added volume of the local market can be estimated at 4-5 billion.

— And what perspective you see here for your company?

— We have long grown and gradually felt that they could try to return to the country is an important element in the process chain with wool — production of raw materials in the form of yarn from raw materials in the form of a coat. We wondered to create the chain in place. After all, in Karachay-Cherkessia and have fur, and its market outlets, but not the most important middle, — processing of wool. And we started the construction of factories for the processing of wool and woolen ribbons.

The whole project is estimated at 800 million rubles, of which the first part — more than 200 million. In the first stage of production are created for processing wool and woolen bands (tops), the second — a costly production of yarn. Power Company — up to two million tons per year. The company is registered in Cherkessk. In the spring, we have already begun work. In May and June, we need to start collecting new crop — a sheep is shorn, usually once a year. This year we plan to recycle at this year’s crop — 60-70 percent of the total sales of produce at home. We are all ready for this. It is not only completed work on the creation station for water purification.

We did not think about how to implement this project quickly. But the government has now turned its attention to development of the North Caucasus Federal District — we were offered state guarantees, the receipt of which would accelerate the implementation of the project. We ourselves can today credited within 100 million rubles. For the realization of the investment project will not be enough. We need a loan of about 600-800 million. The regional government has proposed a federal our project included in the program of development of North Caucasian Federal District for the next three years.

— There is an understanding in what time frame you will be able to get the warranty?

— We have completed the construction documents for the second phase and completed the construction of the first. With us working group of experts from the embassy. That’s where we pass the documentation on the project. They then analyze the activities of our company. Fundamentally resolved the issue of safeguards, but technically not all details have been clarified. After the warranty will be confirmed, we will start substantive work with banks to raise a loan. We had hoped that the issue of guarantees will be decided in the first half, but we have no information as to what stage the solution to the problem — a process that is difficult to control, it is difficult to influence him. And for us is vital time, as production worker for each day of downtime turns into a burden of additional costs. For example, during the recent high winds in Cherkessk we had to dismantle part of the wall construction of the second housing being built in order to avoid accidents. You may need to adjust the timing of implementation. According to our calculations, the project from start to run fits in two years. That is, we could fully realize it until the end of 2012.

— Do you plan to launch the enterprise to increase revenue?

— In the sales yarn we now occupy about 20 percent of the local market — we sell about 1.5-2 tons. The lion’s share of our sales — about 90 percent — within the country. We thus design the company that it has generated as much now able to sell. In 2010, we had revenue of about 400 million rubles. The introduction of production capacity does not necessarily imply an immediate increase in revenue. This year, we only change the structure of activity — we will not buy a service for processing wool, win in profitability, while become mor
e independent — and this is a basis for further growth. Obtaining the status of the manufacturer will lead us to a number of customers — because everyone wants to buy it from the manufacturer and not the intermediary. We — a public company engaged in all major textile exhibitions and feel what is happening in the market. I think the market will tell us how to react.

I am confident that our production will increase sales outside the country. We have a very good export potential — we get a lot of inquiries, but not yet in a position to satisfy them. Wanting to buy wool in mytom a lot, but our goal — to increase the proportion of processing.

— The reports about your project mentioned innovative solutions, used in it. What is it?

— One of the biggest problems in the organization of the production — industrial effluents. Especially because we are in the recreational area. Now we do with waste water would have nowhere — municipal wastewater treatment plants with them simply can not cope. Before deciding on the construction of the plant, it was necessary to solve the problem of cleaning. And we found a solution. We have a small research team that was able to develop and even get a patent on the know-how to clean drains. The cleaning process is as follows: five barges of water occurs in the first steeping, the second — the saturation of cleaning solution in the third — rinse, etc. Traditionally, all this water is drained together — and no one treatment plant to deal with it can not. We got the idea to explore the drains of each of these barges at a time. And we realized if each of the factions to work separately, the task of cleaning much easier. Moreover, it becomes possible to make use of closed-loop water. We’re going to dump the sewage system is not more than 10 percent — and then just then to add some water to live. Why did Cherkessk

— And there was a choice where exactly to implement the project?

— Yes. First we tried to settle in Rostov. There was an attempt to create such an enterprise, and that is where we bought a piece of equipment. We worked 8-9 months and realized that we could not stay there. The city began to attack on the industrial park — rent and increasingly expensive. Well, besides Cherkessk more conveniently located to supply it with raw wool.

The other factor. Cherkessk has a very important resource — thermal waters, which can be used in the processing of wool. This factor was one of the key, when the decision to build. It’s not so much the thermal qualities, but in the soft water — its cleaning properties can only admire. In Rostov, for example, the ratio of water hardness — 7, and here — 0.5. Even our grandmothers tell stories that need to go to a certain place to wash wool to tie granddaughter soft socks. At one time in Cherkessk drilled nearly two dozen wells, three of them — in the immediate vicinity of the site, which we have arranged the deal. The thermal water rises from a depth of 1,600 meters with a temperature of about 70-80 degrees. The water itself could wash wool — we plan to do it with minimal use of detergents. That is obviously the production will be more environmentally friendly — and this is part of the strategy. We see in this great resource.

— What is it?

— The resource position as a company that produces environmentally friendly products. One point in the production of knitted garments have specific — they can be made of wool and some other natural fibers, but you can of artificial fibers. Where the standard of living of the population is not very high, it is oriented to the artificial fiber Nitron. Of course, this question is directly related to the health of the nation. In the early years the bulk of our sales held Nitron. Woolen requires more technical skill and professionalism. Go from synthetic products to more technological, but also more expensive — it’s one of our goals. Now synthetics in our sales accounts for more than half. So far looks like demand. But if we begin to produce yarn for yourself, we can offer it at a different price — and get a competitive advantage. We actually plan to increase the sales of wool yarn in half. Now natural yarn twice as expensive synthetic — about 400 rubles per kilogram. Producing wool themselves, we can somewhat reduce this gap and still win in profitability.

— Your main market — in the country?

— Yes. Therefore the task was initially positioned as close as possible the production. This is a competitive advantage because we like the closest manufacturer based in Moscow — that far. And the market is changing rapidly, requires operational decisions. It happens to the demands of the customers have to respond within a week. Market transformation

— What is the competitive situation in the production of wool? What will be to your advantage?

— In Moscow, the factory now employs classic Soviet-style. So that they can respond quickly to requests, they must be upgraded. Today, they often work in the warehouse — and gradually sell out. There is an important point — the Soviet processing technology was still somewhat different. Here you are in the same place today saw a combined cycle washing wool and wool production tape. According to Soviet technology that was not provided. Wool was processed at the same plant, then it is sent out to all over the country — at topsovym shops. In this connection there are a number of nuances that affect the quality and efficiency as blurred responsibility for the final result. The company has processed wool, and what of it turned out, he was not interested. This factory, which we conceive — that all processes were carried out in the same place — in Russia yet.

The Soviet system had to be rebuilt. Wool processing plants have closed in Omsk, Ulan-Ude, Moscow, Chernogorsk. Nevinnomysskiy plant, which in Soviet times, not just recycled all wool southern Russia, but also Australian, now loaded with 10-15 per cent. It was a giant. But such plants, in principle, could not survive in the new environment, because they were designed for a different economy. This is a huge room, one of which is killing the economy heating company. And attitude to the economy and, in this completely different. They were engaged in the production, but not rebuilt the sales system, and as well all the costs under the order. As a result, the company with good professionals left without a market.

— You said about the export potential — evaluate the attractiveness of foreign markets.

— In recent years, exports of wool growing rapidly. The most active buyers — India and China. But if we have the yarn, the buyers will be the European countries, because the processing of wool they are alienated from themselves. Incidentally, I think they’re much today because of this losing. The Chinese in 2010 in Latin America bought all wool, with the support of the state buying Australian wool. Naturally, this can affect prices. At the time, the same way the Soviet Union did. Today, the prices on the international market is very high — a year they grew at least twice. Kilogram tops cost 4.5-5 euros today — 9-10 euros. With this price, even no one disputes. Well, as the price has increased, many are turning their sights on Russia, for which foreign markets are becoming more attractive.

Officially, China does not allow the import of raw wool from Russia. And the tops they do not want to buy in any case. They want to buy scoured wool. The whole of Europe one or two plant tops, and the basic profitability there. Profitability can migrate from one stage to another, but did not get around tops. If you’re in control of this link, then you control the market — so did the Chinese. This way we are going.

In the domestic market prices have risen proportionately. The current price for unprocessed wool — about 50 rubles, although a year ago kilogram of wool cost 25-30 rubles. The situation has become extremely interesting for the farmers, but the question is
— how they use it: whether they will go on increasing production is not yet clear. Complicating factors: the state has gone completely out of the scope of sheep. Sheep — a unique animal: gives meat, wool and leather. You can eat, get dressed and put on my shoes. In this case, everything is cheap and eco-friendly. If you raise the issue of the health of the nation, without the sheep we can not do. This is a topic that should be developed — especially in the south of Russia, because here there is a lot of potential.

The main producer of wool South remains, but the quality of our products is very low. Because there is no public policy, there is no existing quality standards. Although they just need to get to the far shelf and blow the dust from them. For example, Australia is a very serious approach to quality wool — private owner who wants to sell, should standardize their products. Second, the state needs to provide incentives for those who want to do it. Here in the processing of the state has already made a contribution. One of the factors that led us to the organization of production — it appeared three years ago, the opportunity to buy high-tech equipment and bring it with no fees. It was very important. But if the first step has been taken, it is necessary to complete begun.

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