11.10.16A contract has been signed for supply of a new production line to the Nevsky Filter plant
On September 29, 2016, in Germany the staff of GC RollmanPJSC headed by General Director A. L. Vorobievsigned a contract for supply of a new line of Karl Rabofsky GmbH worth 408 thousand euro to produce cabin filters. Equipment is to be supplied within 25 calendar weeks; works to produce a new line have begun.
It should be noted that we have been experienced in operating such a line for about 9 years. This fully automatic line with one operator can produce 6 to 8 filters per minute. It is planned that this line will be installed next spring in the new production facility; the currently operated line will be taken there as well. The line will work both on a two-shift and three-shift basis; therefore, in 2017 the output of cabin filters will increase to 10 thousand pieces per day.
According to A. V. Fomin, Chief Technologist at the Nevsky Filter plant, lines should be installed in and taken to the new production facilities as fast as possible as the prices of cabin filters tend to go down and may decrease by 30% - 40% in a year. We believe that the payback period of this line is 1 year as our assets include the main well promoted NEVSKY FILTER brand and we will receive a higher added value than our direct competitors. We keep in mind that profitability of even more sophisticated products such as oil filters have gone down to the payback threshold over the last 5 to 7 years. This is associated, first and foremost, with the market maturity. We suppose that the cabin filter market in Russia will mature by late 2017 as well. Therefore, weshouldhurryup.
We are grateful to all our shareholders for their contribution to the Russian engineering industry development as both Nevsky Filter plants belong to the engineering industry according to the classifier of industries.