Russia: Unique beer bottle production plant

The Novgorod glass factory (NSZ) has presented a project for production of beer bottles of European standard in Veliky Novgorod, costing US$ 53 million including US$ 9 million intended for constructio…

The Novgorod glass factory (NSZ) has presented a project for production of beer bottles of European standard in Veliky Novgorod, costing US$ 53 million including US$ 9 million intended for construction of the building. According to a source in the regional administration, the new plant will be built on the credit of Lloyds bank. The name of the founder, a Moscow-based company, was not disclosed. The general contractor for construction, Lentek company, a St. Petersburg-based subsidiary of the Finnish company YIT Rakennus, was expected to sign construction contracts by the end of June. The German company SORG and its branches will supply the ovens, automatics and workshops on the turnkey basis. According to the management of the NSZ, there are no counterparts to the new plant in Russia. Construction of the plant was to begin in June 2002 and will be divided into two phases. When the first part of the plant becomes operational by the end of 2003, NSZ will produce 240 million bottles a year. After putting of the second part of the plant into operation annual capacity will grow by 270 million bottles. The new plant is expected to employ about 400 people. The pay back period of the project is 3.5 years. Three years ago Finnish Holdings OY already decided to build a bottle plant in Veliky Novgorod.