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AGRO perspective №6 '2000
 Strategic prospects |
IT TAKES TWO FOR SUCCESSFUL COOPERATION
Elizaveta SVYATKIVSKA, reviewer
On June 16, the building of Kiev Chamber of Trade and Commerce hosted a seminar dedicated to completion of a joint investment project that involved production modernization of Kiev Malt Extracts Plant. This project was carried out within framework of the power loss reduction program in Ukraine (the agreement on the program was signed by the authorities of Ukraine and the Netherlands). The embassy of the Kingdom of Netherlands to Ukraine (the foreign party) and the State Department for International Development and Integration and the State Provisions Department (the Ukrainian party) rendered their support to this initiative. Holland's Haskoning firm committed itself to direct control and execution of the project, while Holland's Senter firm provided financial backup. The seminar welcomed not only the direct participants and higher managers of the project, but also specialists of companies that employ similar technologies, e.g. breweries, producers of soft drinks, milk-processing companies, and bakeries.
Victor Frolov, director of Kiev Malt Extracts Plant, informed that the project was introduced in the company that relates to one of the most developed industries of Ukraine. According to his words, preliminary estimates show that "utilization of the installed Siersema Scheffers equipment will make it possible to reduce power expenditures by 35%, i.e. the losses will reduce threefold".
Frankly speaking, assistance of the Dutch party came in real handy for the Kiev-based plant. Last time the plant was subject to reconstruction as far back as in 1968. Since that time, Kiev Malt Extracts Plant (KMEP) has introduced various malt-extract-making technologies, but power expenses still accounted for some 30% of product costs. Therefore, back in 1996 the company made a decision to hold a thorough power audit. Making use of the audit's results, specialists put together a schedule of steps to lower power consumption in production. The company phased in a Czech-made steam boiler, thus slashing consumption of natural gas by 20% on account of greater efficiency (up to 95%). Moreover, the share of power expenses in the total product costs dropped to 7 to 8%. Yet, the company's own resources were not enough to modernize the whole plant and that is why the management made a decision to work together with Dutch businessmen. As a result of joint efforts, the company has reduced production power consumption and considerably enhanced the product quality.
It has already been mentioned that the investment project was held within framework of the bilateral Ukrainian-Dutch agreement under the PSO program, which is implemented by the Dutch government in Central and Eastern Europe. The program's objective is to support Dutch trade and industrial companies to transfer their know-how and to secure these companies on Central and East European markets. The Holland's Ministry for Economic Affairs finances transfer of know-how. Since food-processing companies suffer the greatest power losses in Ukraine at the moment, the power-saving technology enhancement project for the KMEP has been worked out within this program.
The PSO program has two targets, namely to help Ukraine during its the transition to market economy and to pave the way for Dutch companies to the Ukrainian market. The program's management decides on direction of its projects and holds tenders among Dutch companies that execute the projects in Ukraine further on. For instance, Senter firm contributed some USD 10 million per year for execution of the KMEP project, while completely different companies supplied and assembled the necessary equipment. It has also been mentioned that Haskoning firm coordinated efforts within the project. The fact that the works were completed a month ahead of the schedule proves that such a cooperation is successful and efficient.
Reference note. Holland's Haskoning company has close business contacts with Siersema Scheffers. Today, the company employs some 2,000 professionals with broad skills. Haskoning is a private company that is fully independent from banks or manufacturing firms. At the moment, the company works on numerous projects in different branches. Company's staff is highly skilled and can tailor-make the projects to fit individual requirements of each particular country depending on the prevailing regional conditions and relations. Haskoning mainly engages in investment projects abroad. The company also pays much heed to environmental issues.
Siersema Scheffers has been designing and manufacturing equipment for food processing, pharmaceutical, and chemical industries for more than 45 years now. Today, equipment made by this company features high technologies, low noise, little power consumption, low-condensed pollution owing to greater efficiency, and hygienic design of the whole machine including the smallest component parts.
By the way, the recently completed KMEP project is actually the second one of this kind in Ukraine. Previously, Dutch businessmen rendered their assistance to introduction of power-saving technologies in housing facilities of Podol district of Kiev city. Naturally, these projects are not the last of this kind because there are currently made efforts to build a local thermoelectric power station in one of Kiev's medical institutions. The new power station will make it possible to lower consumption of electric power by 35% in future.
Both the Ukrainian and the Dutch parties expressed their hope that quite a few Ukrainian companies will adopt this experience. At least because there are plenty of investors willing to finance this kind of projects. Project manager Henrich Osterjeik mentioned that the EBRD, London; European Investment Bank, Luxembourg; TACIS; European Governments on-line; Senter, the Netherlands; and other establishments and institutions are willing to render financial aid to the Ukrainians.
Summing up, the seminar's participants stressed that power-saving is among the most significant problems for Ukraine. This is what the mass media speaks about when analyzing power dependence of Ukraine on the neighboring states and the tremendous power consumption in Ukrainian industry. Ukrainian manufacturing companies consume twice as much electric power as Western enterprises do. Nevertheless, the President of Ukraine committed to shut Chernobyl Nuclear Power Plant down till February 16, 2001, which should make Ukraine face greater hardships with power.
In this situation, similar joint projects are becoming more and more urgent. The power-saving experience of Dutch firms is truly valuable for Ukraine. It is extremely important for this cooperation to continue further on in Ukraine.
Reference note. Kiev Malt Extracts Plant was set up in 1860. Presently, this company produces high-quality natural malt extracts for baby food milk substances, light and dark beers, extrusion-technology products (breakfast cereals) for baking and confectionery as the feedstock for mass-production and domestic making of kvass and other beverages, for pharmaceutical, perfume-making, and cosmetic industries.
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