OREANDA-NEWS. May 13, 2008.  Experts of Nytva Metallurgical Plant have shortly returned from Sochi but the purpose of their trip was not leisure: in late March of 2008 the capital of Olympics-2014 hosted the 8th specialized exhibition of hospitality and restaurant business “Industry of hospitality and entertainment”.

According to Elena Postanogova, head of retail sales department of ESTAR-Nytva Ltd, it was the third time that the enterprise participated in that exhibition. - The matter is that the Sochi region has lately begun to interest us in terms of commercial contacts. It's common knowledge that the President's program envisages about 230 bln rubles of investments in the city’s infrastructure to reconstruct the Sochi seaside as a resort.  Since 2005 virtually everything has been developing intensively there, including the public catering system. After Sochi was announced the host of the next Olympics, the interest towards the region increased manyfold.

Among the products that Nytva sent to the exhibition were not only the traditional cutlery kits from the model lines Mondial, Celebration (“Torzhestvo”), Uralochka, already widely popular beyond the region’s borders, but also products bearing Olympic symbols. The Nytva products have traditionally attracted particular attention of the participants, visitors and organizers of the exhibition. There’s nothing to be surprised about: Nytva uses only the best medical steel grades to produce cutlery units; the quality is tested with spectrum analysis that guarantees ecological safety.

That’s the only way to do it: competition is very high in this segment; superb quality is one of the most weighty arguments in relationships with the competitors.

The second aspect that defines competitiveness of a modern enterprise is investments in production. In the last few years the plant has paid special attention to the development and upgrade of equipment. Particularly large investments have been made in the shop that manufactures mass consumption goods. For instance, a new mill for thin steel band rolling was introduced; other kinds of equipment were updated. Today the enterprise enjoys real return on its investments.

- Last year we began to upgrade the continuous pickling line for steel billets, - says Alexander Boldyrev, Nytva chief engineer. - In May we plan to finish the setup and train the operators to work with the new equipment. We expect to get the planned effect as early as in June. That means to decrease metal consumption and increase the output of finished products.

This year another stage is to be finished – replacement of worn-out equipment with partial repair of 4 furnaces on a thermal unit; that will allow increasing their thermal protection and cutting the power consumption. Besides, re-equipment of hoisting crane management system is underway.

- The production plans envisage the development of new and more complex steel grades that will require, for sure, more sophisticated equipment. It’s necessary to invest in rolling production and continue the renovation of hot galvanization line. We want to purchase a length cutting unit. Another big issue of the current year is environmental investments. According to Alexander Boldyrev, the enterprise plans to implement the work in 2 stages: first, re-equip the production waste disposal facilities and afterwards – the biological waste disposal facilities.

Alongside with this, the enterprise starts up a new activity – management of multifamily housing through creating its own subsidiary, Nytvaenergoservis. Due to a proper technical base and highly qualified experts, Nytvaenergoservis will offer a whole range of services to manage multifamily housing (heating, sewage treatment and maintenance of utility networks) in Nytva with a high level of quality and without involving third party enterprises; this creates a competitive environment for the existing service suppliers in this market segment. Further it is planned to transfer all power assets (including the water treatment plant) and the Nytva construction and repair shop to this subsidiary. With the purpose of reaching equilibrium of the quality of services and their cost, Nytvaenergoservis’ operations will be state-controlled through the Federal Antimonopoly Service.