“Noris” LLC opens on July 22 at the premises of “BENZ” OJSC

“Noris” LLC opens on July 22 at the premises of “BENZ” OJSC. “Noris” LLC produces high-temperature cable for submerged oil pump electromotor supply, as well as sites for installation, maintenance and service of bottom-hole pumps “Weatherford Machine Mining” LLC.

  The opening ceremony was hold with the participation of the President of the Republic of Tatarstan R.N. Minnikhanov, the Minister of Economy of TR M. R. Shagiakhmetov, the Minister of Industry and Trade of TR R. H. Zaripov, CEO of Invetment and Venture Fund A. T. Aydeldinov, the president of “MC Runako” Z.R. Kavtaradze, CEO of Investment groups “Welles Capital” S.A. Zhdanov, regional vice-president of Weatherford in Russia D. H. Kaminski, CEO of “Weatherford” F. R. Kamalov, as well as the partner company representatives of Bugulma Electric Pump Factory.

The ceremony started with the informal meeting with guests. Later on, the chief engineer of “Benz” OJSC A. I. Sultanov took a tour of the factory. After the tour the guests were invited to the plenary meeting to discuss the prospects of the development of the factory. The President of the Republic of Tatarstan officially opened the ceremony. “We are hopeful about the future prospects of the development of the factory”, – concluded R. Minnikhanov on Bugulma Electric Pump Factory’s activities, as stated by the Press Office of the President of TR.

The building of the factory was funded by Investment and Venture Fund of the Republic of Tatarstan and “Wellness-Capital” Investment Company as a part of small and medium-sized enterprises support program offered by “MSP-Bank” OJSC.
 
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“BENZ” OJSC was founded in 1962 and produces equipment for oil extraction (electrical submersible pumps, electrical submersible motors, seal section, gas separators, repair parts for ESCP). In 2009 BENZ was close to bankruptcy. The government of RT decided not to close the unique engineering factory and bought it out of “Alnas” OJSC. Investment and Venture Fund of the Republic of Tatarstan bought the factory and in 2010 it started to be managed by “Welless Capital” investment group. The modernization and technical improvement of the factory started from then on.

From 2010 to 2012 overall 832 mln rubles were invested into modernization. Within three years the factory acquired modern high technology equipment including core making machines for foundry from Italy and Japan, two «HAAS» manufacturing lathes with numeric control from the US, as well as «OKUMA», «TAKISAWA» (4 items) lathe milling machining centers from Japan and an automate mill «AIDA».
 
Having completed the first stage of modernization BENZ increased capacity, extended the product line and have reached the pre-crisis key performance indicators. At the moment there are about 1080 employees in the company. The company produces up to 100 mln rubles production per month. In 2012 revenue of the company reached 1046,6 mln. rubles, while in 2009 the company’s revenue was 260 mln rubles. In 2012 the company produced 1395 items of submersible еlectromotor, 1173 items of ESP. Overall equipment repair works costed the company 551 mln rubles. BENZ continues to increase its capacity and is set for 2 and 3 stages of modernization in 2013 and in 2014. In turn, this will enable the company to increase production capacity by times starting from 2015.
 
With the support of the Government of the Republic of Tatarstan and the active participation of the Investment and Venture Fund of RT the project of “Developing the factory of high temperature cabel KIEKB-260 using high temperature material polyetherketon" was initiated in 2012. By the decision of the management of “MK Runako” CJSC, a new innovative factory was established in the territory of “Benz” OJSC. “Noris” LLC offers a new, lighter type of a cable which meets customers’ temperature and durability requirements. The cable was approved for launch after laboratory tests. Project's cost is 200 mln.rubles. Payoff period is 3 years. Project's production capacity is 720 km per annum. The new product’s prize is compatible with the prizes in the market. Product's capacity is 235 мln per year.
 
“Noris” LLC products are in high-demand among oil exctracting companies, and oil related service and maintenance companies in Russia and Commonwealth of Independent States (SNG). Among the prospective clients of the company are “Tatneft” OJSC, “Rosneft” public oil company, “Lukoil Zapadnaya Sibir”, “Bashneft” public oil company, as well as oil companies in Azerbaijan and Kazakhstan. A part of production will be spent on “Benz” LLC own needs, namely on developing lengthening rods for ESCP. Project will start in 2014.
 
“Weatherford Mechanical Extraction” LLC is a joint company which was founded in 2013 in Bugulma by Weatherford Company and “BENZ” OJSC.
 
Weatherford is one of the largest oil companies in the world which offers a wide range of services and equipment for oil and gas extraction. The number of employees in representative offices around the world is more than 70 000. There are 1 100 service and 90 production sites, as well as 34 educational, engineering and research centers in more than 100 countries around the world.

“Weatherford Mechanical Extraction” LLC is a production site for installing, maintenance and service of submersible rod pumps. Project capacity is expected to be four and a half thousand pumps per year. “Tatneft” OJSC, “Rosneft” public oil company, “Bashneft” public oil company and other oil companies are expected to be among the clients of the company. Submersible rod pumps meet the requirements of api 11ax specification, as well as the global quality management standards ISO 9001. A new company in Bugulma creates an opportunity for raising employment by creating 27 placements in 2013 and up to 100 placements in 2016. It is expected to implement new technologies on a regular basis, as well as to create a consignment stock with a regular delivery of equipment.