Manufacture of Architectural and Construction Elements from Durable Decorative Concrete.
Objectives
- Arrange manufacturing of maximum range of items from concrete: fireplace frames, paving slabs
imitating natural stone, fences, windowsills, steps, small architectural elements.
- Achieve sales volume of the proposed produce at least 400,000 GBP by the third year of project implementation.
- Entering a wide market of construction materials of Sverdlovsk and Chelyabinsk regions, assuming expansion in the Urals.
- To create 20 new jobs in Snezhinsk, including 11 for former employees of VNIITF.
Background
A local entrepreneur wants to establish a business to design, produce and install concrete
fittings like fireplace surrounds, decorative slabs, windowsills, steps and similar items.
He intends to use a novel vibratory casting process for which he would have to obtain a licence
from the developer in Nizhny Novgorod. Vibro-cast concrete items exhibit better physical
properties than artificial stone and are half the price. There is strong demand for artificial
stone items in, and around, larger cities in the Urals but the business is highly competitive
and seasonal. Research indicates that there is room in the market for local producers who can
meet the requirements of smaller consumers such as pavement contractors, landscape designers,
communal housing services, and flooring contractors. The start-up business will reduce its
exposure to seasonal fluctuations by seeking sub-contract work from larger manufacturers and
by producing items for internal features such as fireplaces which are less affected by seasonal
fluctuations.
Plan
This project aims to use pellet-shaped, very high density cement to cast different shapes and
designs for more durable paving slabs, decorative stones, fireplaces, and other items. Initial
research indicated that there was then a good prospect of creating a sustainable and profitable
business, with minimum sales in the first year of £200,000. The plan sets out that equipment will
be purchased, facilities rented in Snezhinsk and redesigned to accommodate the vibro-casting
technology, and staff recruited and trained.
Summary
Final audit proved that the Beneficiary has not fulfilled its obligations as concerns job creation. 22 new jobs (6 for former employees of
VNIITF) had been created vs a planned 20 (11 for former employees of VNIITF).
The project has been closed without paying the remaining payments.
Cost
Total cost of the project is £106,298. The DECC's contribution is £59,778.
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