Currently construction at the plan includes rebuilding of warehouses and administrative buildings in preparation for installation of new crane equipment.
“Amkodor-Onego” LLC was established by Belarus holding “Amkodor” in 2019 following the bankruptcy if the “Onego Tractor Plant”. The plant needed an investor, and “Amkodor” stepped up. “Amkodor” is going to create a site for assembly, and then – for import substituting full cycle production of forestry machines – harvesters, forwarders, etc.
An investment contract was signed in June 2019. Under the contract, full modernization of the warehouses and major overhaul of the buildings are planned. Total cost of the project is estimated by US$ 220 million. The government of Karelia (Russian region) assumed the priority of the project and established several requirements.
In 2019, the investment volumes reached US$ 2 million. Implementation of the project continues in 2020, and it has supplied 20 bridge cranes up to 22 tons. It’s planned to make 60 machines this year.
The annual production capacity of the plant will be about 1000 machines, and the plant will employ about 500 persons Read The Article
PSR Analysis: Belorussian Amkodor produces a competitive range of forest machinery. However, Russian protectionist measures forced them to establish a production/assembly plant in Russia. They already have one in Bryansk; however, it specializes in wheel loaders and has no potential for significant expansion. So, their project in Karelia has a good chance for success. However, recent turmoil in Belarus (with the strikes on machinery plants) may cause problems for this project. PSR
Maxim Sakov is Market Consultant, Russia, for Power Systems Research
