Kirovsky Zavod and Sevkabel sign long-term cooperation agreement

Kirovsky Zavod CEO Georgy Semenenko and Sevkabel CEO Sergey Yarmilko have signed an agreement on the long-term lease of a Kirovsky Zavod group site.
 
The collaboration between the two companies will enable the phased relocation of the production facilities belonging to Sevkabel, one of Russia’s largest cable manufacturers.
 
At the time of writing, agreements have been reached and documents are being signed on the lease of the first building, premises of about 20,000 m2 located in the centre of the Kirovsky Zavod site and close to the Petersburg Tractor Plant (the Russian market leader in high-power tractors and part of the Kirovsky Zavod group). The parties will work together to repair the existing building and prepare it for Sevkabel’s production activities. Under the agreement, the lease will be for at least eight years, and may be extended if the parties agree.
 
Sevkabel is expected to occupy about 50,000 m2 in total across four modern closed-cycle workshops.
 
The first stage of the relocation will start in the middle of the third quarter of this year, and the second stage will take place in the fourth quarter. By the end of 2020, Sevkabel will have completely vacated its site on Vasilyevsky Island, and by the second quarter of 2021 all production lines will have been launched at the new site.
 
Georgy Semenenko, CEO at Kirovsky Zavod, noted: “I believe the future of this partnership with Sevkabel is bright: we have the necessary experience of providing a large industrial enterprise with everything it needs to operate successfully, and in return, we get a large industrial enterprise interested in long-term cooperation both as a tenant and, importantly, as a supplier of products for our subsidiaries.”

The relocation will be carried out in stages to avoid bringing production to a complete halt. “While some production facilities are being dismantled, others will remain in operation and be relocated only after the first facilities have been launched at the new site. This will enable us to minimize downtime and fulfil all of our contractual obligations to customers without having to extend deadlines,” explained Sergey Yarmilko, CEO of Sevkabel.
 
The move should offer Sevkabel new opportunities for growth and modernization, allowing the plant to improve its manufacturing processes and develop new types of cable and wire products as part of import substitution programmes for products without alternatives in the Russian Federation.