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  • General Director of ZNT Yard Sergei Konovalov: “Leasing is one of the effective mechanisms for financing the construction of ships”
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  • 2010 June 19

    General Director of ZNT Yard Sergei Konovalov: “Leasing is one of the effective mechanisms for financing the construction of ships”

    ZNT Yard JSC in Nizhny Novgorod is one of the few small-tonnage shipbuilding assets of the United Shipbuilding Corporation (USC). Currently, the company’s portfolio of orders is small, however, the enterprise's management sees an opportunity for the development of the shipyard, including through the construction of leasing schemes involving USC. The company’s General Director Sergei Konovalov told about ZNT Yard work and prospects of shipbuilding in Russia in a recent interview with PortNews IAA.

    - Sergei Mikhailovich, how ZNT Yard interacts with USC? Can you evaluate the performance of the state shipbuilding corporation in the river and boatbuilding segment of the shipbuilding market?

    - By the presidential decree of June 9, 2010 the federally owned 25.5% stake in the Nizhny Novgorod enterprise was turned over to the USC’s authorized capital stock of USC. Only now we can say that the USC is actually completed the formation of its structure. So talking about the effectiveness of its functioning is still too early, but it should be noted that only a small number of enterprises of the USC specializes in the production of small-tonnage vessels and river segments.

    - Do you count on an increase in the number of shipbuilding and repair orders when the new law supporting Russian shipping and shipbuilding industry comes into effect? Do you expect that Nizhny Novgorod company will benefit from the new law?

    - If all the proposed by Russian Ministry of Transport measures to stimulate the development of the market of shipbuilding and navigation are accepted, it will certainly provide an impetus for the development of a Russian shipping companies and shipyards. Hopefully, financial and economic and fiscal conditions for Russian shipyards will be equal with that of our foreign rivals.

    - What are the financial institutions your shipyard is working with? What is the most effective, in your opinion, the mechanism to raise funds as well for the development and modernization of the enterprise, as for financing the construction of ships?

    - Currently, we are working with Sberbank and UniCreditBank. It should be noted that an effective mechanism for financing the construction of ships is leasing with the resources allocated by the state in the authorized capital of the USC. Oka Shipyard is building 10 dry cargo carriers under this scheme. I hope that this mechanism will soon be available to a wider number of shipyards.

    - How big is your company’s portfolio of orders? Will it be expanded in 2011?

    - ZNT Yard has been building a series of four inshore diving boats, buoy-laying vessel and specialized repair vessel for laying pipelines (SPRS-K). We’ve been in negotiations for new contracts, including in new segments of the shipbuilding market.

    - Do you have any upgrade program for your shipyard? How much money have you set aside for 2010, and what for?

    - We have been running a modernization program of our shipyard. In 2009, we allocated 35 million rubles of capital investments. Approximately the same amount will be invested in 2010. First of all, we are spending these funds to implement energy-saving technologies and equipment, upgrading metal production, optimizing logistics of the shipbuilding workshop, increasing the dimensional characteristics of our products, combined in the main shop before the placing it on the stocks, as well as for the dredging of the shipyard waters.


    Interviewed by Sophia Vinarova

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