Industry: Automotive Parts and Service Equipment

"Eurasia Trans Disk", being the initiator of the Project, is a legal person in accordance with legislation of Russian Federation. The Company enters the trans-national group of "Eurasia Trans" companies.

The Company exists from July 2001 and has its head office in St-Petersburg, Russia. Its regional representatives are located in Ukraine, Uzbekistan and Turkmenistan. 

During the initial period of its activity (the third quarter of 2001), the Company organized production of stamped wheels at the specialized plant in the city of Fergana, Uzbekistan, which control share holding belongs to "Eurasia Trans" group. In September 2001, the Company entered CIS market with the offer of certificated stamped wheels of various types and sizes. The quality characteristics and prices of production are competitive with the correspondent production of well-known foreign manufacturers. The sale volumes of stamped wheels during just first three months of Company's activity reached the value more than $0.5 mln.

Due to the short period of its work, the Company still did not occupy in the whole scope the existed niche in correspondent market area, but the market share of the Company is planned to be at least 10% by the end of 2002 at CIS market. The volume of Company's portfolio for delivery of stamped wheels approaches to 1.5 mln, whereas the maximum actual output of Fergana plant is a bit more than 1 mln. per year.

The present Project is an offer for involvement investments into the establishing of modern production of steel disk wheels on RF territory, with total output of 3 mln. per year.

This Project will result in considerable increasing of production volumes as well as in the reducing of disk prices, which allow the Company to occupy the 30%-niche on industrial market (car plants) and on consumer (secondary) market of Russia and CIS countries.

According the evaluation made by specialists of the Company, the current market capacity for stamped steel wheels is at least 9.5 mln annually. 

Till the present time, the demand for stamped wheels could be satisfied due to home wheel production organized in the soviet time yet (usually on base of car plants) as well as due to the import of the similar production from West Europe.

But for the present moment, the situation has changed and led to dissatisfaction of demands both of primary and secondary CIS markets. This market niche is occupied by the Company, which claims its production as "high quality disks with acceptable prices" (the price of disk with the size 5 x 13 is approximately $14).

This analysis gives the possibility to state that realization of the Project will take place in conditions of favorable market state.

The aim of the Project is the answering the demand for stamped wheels from primary (industrial) and secondary (consumer) market of Russia and other CIS countries as well as the replacement of import by the similar home production.

The strategy of the Project is the leadership in quality with minimum of expenses, the occupation of free market niche in the industrial sphere as well as in the sphere of spare parts delivery for car industry.

The content of the Project represents the planning, complete building of a Plant for wheel production on base of modern technology and equipment made by western manufacturers and putting it into operation. The technology allows the usage of original certificated press-forms, which side by side with high technological demands to the quality of raw materials assures the operating characteristics of the production in accordance with world standards level. 

The basic advantages of the Project, which ensure its efficiency and business attractiveness, are the following: the mono-productive character of production, variable in its assortment, which helps to organize the large-scale industry with minimum expenses; the possibilities of centralized deliveries of raw materials, which allows to minimize material costs in disk prices; the using of experience accumulated by the Company in the sphere of organization of basic production and management of stocks; the possibility of industrial and technical cooperation between the Plant and other enterprises of "Eurasia Trans" group, which allows to reduce the risk in establishing and development of new production, as well as to ensure the law level of manufacture and administrative costs. 

The basis competitive advantages of the Project are: 

- high quality of production (in line of world standards), which guarantees its high consumer characteristics;
- wide range of disk sizes and types, planned for output;
- reasonable market prices of production;
- active sale policy;
- high quality of raw materials used in production
- considerable reducing of the share of transportation costs in production price due to proximity to sources of the raw materials as well as to customers.

The basic perspective sale market for Company's production is located on the territory of Russian Federation and CIS countries. 

The sale system will be formed on the following basic principles: 

- for consumer segment of the market - forming of the common centralized regional dealer net;
- for industrial segment of the market - long-term contractual relations with car assembling enterprises.

Market structure will orient the perspective portfolio of orders in such a way, that the deliveries to the assembling lines of car plants ("AUTOVAZ" and its mutual project with "General Motors", as well as "Ford Motors Company", "Nizhegorod Motors" etc.) makes up from 50% (the first stage of the Project) to 80%.

The Project presents the systematized sequence of Company's activities, such as working-out of Business-Plan, involvement of investments, building of a new enterprise and putting it into operation as well as organization of high-efficient process of manufacture and sale of production. 
The Project realization will result in satiation of Russian and CIS market with high-quality production, which is much in demand.

"Eurasia Trans Disk" is looking for partners (company or number of companies) to take part in this Project. The participation can be provided by financing, supply of technology or equipment etc. As for the Company itself, it will participate in the Project by organization of production, sales, on base of own technologies and experience.

After regulation of cooperation with foreign companies, which have car-assembling enterprises in Russia, and after obtaining the international certificate, the Plant can expand its production to European and world markets.