Orsha Tool Plant focuses on Russian customers
When the USSR began to actively produce machine tools with numerical control, the capacities of the Sverdlovsk Tool Plant were no longer sufficient to provide them with the necessary tooling. It was then that it was decided to build a similar enterprise in Orsha. It released its first products in April 1974. Today, OJSC "Orsha Tool Plant" not only holds one of the leading positions in the production of auxiliary and metal-cutting tools in the Republic of Belarus but is also well-known outside our country. Moreover, recently it has been increasingly promoting its products in the foreign market. The enterprise's management understands that without this, it is impossible to preserve production and the team in the current economic conditions.
A few years ago, the Orsha plant mainly worked with domestic customers, said Nikolai Ulitёнок, First Deputy Director of the plant. 80-85% of the entire product range went to our enterprises, including giants such as BelAZ, MAZ, MTZ, Gomselmash, and others.
"In the successful year of 2013, we supplied Belarusian partners with products worth more than 44 billion rubles," noted Nikolai Stepanovich. "And in 2014-2015, shipments to the main enterprises of the Ministry of Industry sharply decreased."
According to Nikolai Ulitёнок, domestic orders for the past year totaled only 22 billion rubles. Specifically, product supplies to BelAZ decreased 52 times, to Bobruisk Brake Equipment and Mechanisms Plant – 34 times, Gomselmash – 26 times. Other customers also saw a decrease of 1.5 to 7 times.
The reason lies both in the economic crisis phenomena, which affected all economic entities, and in increased competition. In recent years, the market has been flooded with tools from Southeast Asia and China.
"They come at dumping prices," explained Nikolai Stepanovich. "Sometimes the cost of such a drill is less than the cost of a blank made of high-quality steel required for its production. That is, such Asian tools are made from far from the best materials. But at procurement tenders, the price is the first, and often the only decisive indicator.".
Despite all the difficulties, the Orsha residents are not giving up. To expand sales markets, they began to produce more new non-catalog products – in 2014-2015, they accounted for up to 50% of the total production volume. In addition, in the context of declining demand for tools in Belarus, the plant's management began to actively search for customers in the Russian Federation – primarily among enterprises of the military-industrial complex, which are allocated significant budget funds, including for the purchase of equipment and tools. As a result, the share of exports increased from the previous 15-20% to 53% in 2015. And in March 2016, it was 83% at all.
— We opened a trading house in Smolensk because some customers could not enter into direct contracts with Belarusian residents, — said Nikolai Ulitёнок. — Close cooperation was established with the largest consumer today – Ufa Engine Industrial Association, which is engaged in the production of aircraft engines. It all started with a small order, and in 2016 we expect to supply products worth about 70 million Russian rubles, contracts have already been signed.
Among the enterprises of the Russian Federation with which the Orsha residents plan to develop cooperation are also Verkhnyaya Salda Metallurgical Production Association, JSC Avangard in Safonovo, JSC Zavod Krasnoye Sormovo in Nizhny Novgorod. They are supplied not only with catalog tools, but also with special tools made according to customer drawings. After all, the Orsha Tool Plant has highly qualified personnel who can offer customers technical solutions for the production of various products. The plant's equipment allows for the production of a wide range of products. And partners have no complaints about its quality. The plant has repeatedly been noted in this regard both in our country and abroad. Among the latest awards, one can mention the prize of the Vitebsk Regional Executive Committee for achievements in the field of quality, and the enterprise also has the "Arco Europa", which indicates international recognition.
While solving large-scale economic problems, the Orsha residents do not forget about everyday concerns. In April, twiceWe held clean-up days, noted Yuri Motin, assistant head of ideological affairs, and on other days the team was engaged in improving the territory, clearing away remnants of last year's foliage, tidying up flowerbeds and paths, and whitewashing curbs. In addition, the enterprise's employees are patrons of the memorial complex "For our Soviet Motherland!", better known as the "Katyusha" combat vehicle monument, and the mass grave of victims of the Great Patriotic War, which is located near the plant.
Liliya IVCHENKO, photo by the author. "Vitebskiye vesti".
A few years ago, the Orsha plant mainly worked with domestic customers, said Nikolai Ulitёнок, First Deputy Director of the plant. 80-85% of the entire product range went to our enterprises, including giants such as BelAZ, MAZ, MTZ, Gomselmash, and others.
"In the successful year of 2013, we supplied Belarusian partners with products worth more than 44 billion rubles," noted Nikolai Stepanovich. "And in 2014-2015, shipments to the main enterprises of the Ministry of Industry sharply decreased."
According to Nikolai Ulitёнок, domestic orders for the past year totaled only 22 billion rubles. Specifically, product supplies to BelAZ decreased 52 times, to Bobruisk Brake Equipment and Mechanisms Plant – 34 times, Gomselmash – 26 times. Other customers also saw a decrease of 1.5 to 7 times.
The reason lies both in the economic crisis phenomena, which affected all economic entities, and in increased competition. In recent years, the market has been flooded with tools from Southeast Asia and China.
"They come at dumping prices," explained Nikolai Stepanovich. "Sometimes the cost of such a drill is less than the cost of a blank made of high-quality steel required for its production. That is, such Asian tools are made from far from the best materials. But at procurement tenders, the price is the first, and often the only decisive indicator.".
Despite all the difficulties, the Orsha residents are not giving up. To expand sales markets, they began to produce more new non-catalog products – in 2014-2015, they accounted for up to 50% of the total production volume. In addition, in the context of declining demand for tools in Belarus, the plant's management began to actively search for customers in the Russian Federation – primarily among enterprises of the military-industrial complex, which are allocated significant budget funds, including for the purchase of equipment and tools. As a result, the share of exports increased from the previous 15-20% to 53% in 2015. And in March 2016, it was 83% at all.
— We opened a trading house in Smolensk because some customers could not enter into direct contracts with Belarusian residents, — said Nikolai Ulitёнок. — Close cooperation was established with the largest consumer today – Ufa Engine Industrial Association, which is engaged in the production of aircraft engines. It all started with a small order, and in 2016 we expect to supply products worth about 70 million Russian rubles, contracts have already been signed.
Among the enterprises of the Russian Federation with which the Orsha residents plan to develop cooperation are also Verkhnyaya Salda Metallurgical Production Association, JSC Avangard in Safonovo, JSC Zavod Krasnoye Sormovo in Nizhny Novgorod. They are supplied not only with catalog tools, but also with special tools made according to customer drawings. After all, the Orsha Tool Plant has highly qualified personnel who can offer customers technical solutions for the production of various products. The plant's equipment allows for the production of a wide range of products. And partners have no complaints about its quality. The plant has repeatedly been noted in this regard both in our country and abroad. Among the latest awards, one can mention the prize of the Vitebsk Regional Executive Committee for achievements in the field of quality, and the enterprise also has the "Arco Europa", which indicates international recognition.
While solving large-scale economic problems, the Orsha residents do not forget about everyday concerns. In April, twiceWe held clean-up days, noted Yuri Motin, assistant head of ideological affairs, and on other days the team was engaged in improving the territory, clearing away remnants of last year's foliage, tidying up flowerbeds and paths, and whitewashing curbs. In addition, the enterprise's employees are patrons of the memorial complex "For our Soviet Motherland!", better known as the "Katyusha" combat vehicle monument, and the mass grave of victims of the Great Patriotic War, which is located near the plant.
Liliya IVCHENKO, photo by the author. "Vitebskiye vesti".