Defects in the supplier's equipment are slowing down the implementation of the investment project at Vitebskdrev
Defects in the supplier's equipment are hindering the implementation of an investment project at Vitebskdrev OJSC. This was announced today to journalists by Anatoly Yukhnovets, General Director of Vitebskdrev OJSC, as reported by a BELTA correspondent.
Strommash OJSC (Minsk) was determined as the supplier of non-standard large-sized equipment for the Vitebsk enterprise based on the tender results. In accordance with the developed schedule, the supplier was obliged to complete the order and finish construction and installation work by March 1st of this year. However, during the installation at Vitebskdrev OJSC, defects began to be identified in the supplied equipment. In total, about 60% of the order turned out to be defective. "The management of the Strommash plant admits its fault and is taking measures to correct equipment defects on-site. However, this work is proceeding extremely slowly. As a result, the predicted delay in commissioning the facility is now one to one and a half months," stated Anatoly Yukhnovets.
The head also emphasized that the delay in project implementation, in turn, disrupts the construction schedule of the energy center, intended to provide the new production with its own heat, and entails financial losses, as the investment project is being implemented by Vitebskdrev using credit resources, which the enterprise is already forced to repay.
For the failure to supply equipment and its defects, the Vitebsk enterprise has filed claims against Strommash OJSC for the amount of Br603 million. To meet the planned deadlines, an average of about 360 workers are currently working daily at the site. The general contractor for construction work, Stroytrest No. 9 OJSC, Vitebsk, has involved about 40 subcontractors. The progress of the project implementation is under constant control at the Vitebsk Regional Executive Committee, noted Vladimir Gaydulkin, Director of the State Unitary Enterprise "Capital Construction Management of the Vitebsk Regional Executive Committee."
The investment project for the production of MDF (medium-density fiberboard) and HDF (high-density fiberboard) has been implemented at JSC "Vitebskdrev" since 2011. It involves the production of innovative boards, including laminated products based on wood raw materials, as well as laminated flooring, which is currently imported. Taking into account the repeated postponements, the commissioning of the new production facility, according to the schedule agreed upon with the interested parties, has been moved to June 2013, with the first products to be released by August 1.
The project cost is approximately 75 million euros, and the construction duration is 26 months. Currently, the facility readiness is 80%.
JSC "Vitebskdrev" was established in 1927 and transformed into a JSC in 1994. "Vitebskdrev" is one of the largest woodworking companies in Belarus. The enterprise has an effective quality management system that complies with ISO 9000 requirements. In order to improve environmental performance and prevent environmental pollution, "Vitebskdrev" has created and implemented an environmental management system based on the ISO 14000 series standards. The enterprise is part of the "Bellesbumprom" concern.
Open Joint Stock Company "Strommash" (Minsk) is a manufacturer of non-standardized equipment, metal structures, and spare parts for production entities.