Tikhvin industrial site

Coordinates: 59°36′45″N 33°29′36″E / 59.61244°N 33.49333°E / 59.61244; 33.49333 The Tikhvin Industrial site is a 370 ha (3.7 km2) industrial site located in the southern part of the town of Tikhvin in Leningrad Oblast, Russia. Throughout the plants history it has been associated with metal mechanical engineering, and manufacture of components for large-scale transportation equipment such as bogies for rail vehicles, tank tracks or tractor parts.

In 1963 the Centrolit (Центролит) casting plant was founded, further developments in the 1960s included a subsidiary supply factory of the Kirov factory; both concerns were merged as a subsidiary of the Kirov plant in the 1970s.

The company was privatised as JSC Transmash in 1993; after financial difficulties and severe jobs losses in the post-Soviet era, the whole site was acquired by the ICT Group in 2001, renamed Titran and redeveloped. Poor demand led to an end to tractor production in 2003.

As of 2012 the site houses the Tikhvin Ferroalloy Smelting Plant (operational 2007), Titran-Express (restructured, and modernised from the remnants of the Transmash entity, 2008), and the Tikhvin Freight Car Building Plant (opened 2012).

History

1963–2000

An industrial plant was constructed in Tikhvin in the 1960s, an example of large-scale soviet projects of the time. Construction led to a substantial expansion of the town, with an influx of workers requiring the construction of new housing estates. The population of Tikhvin was expected to rise from about 20000 to ~50000 by 1970 according to the architects of the development.[1]

In 1967 the first casting was made, starting production at the site which continued for another 30 years;[2] in 1968 another factory was constructed at the site as a branch of the St. Petersburg Kirov Plant (Putilov factory) producing parts. In 1973 'Centrolit', the Kirov subsidiary, and Litprom were merged, becoming the Tikhvin branch of the Kirov works. In 1974 production of parts for the К-700Т tractor began.[3]

In 1993 the entity was privatised as a closed corporation as the Transmash plant, and began production of railway parts;[3] the Tikhvin plant produced ferrous and ferrous alloy castings, machinery, and rail transportation equipment and spare parts.[4] In 1995 the complex employed over 22,000, a third of the Tkhvin population.[5]

In the mid-1990s the plant was involved in the production of the prototypes of the indigenous Russian high-speed trainset "Sokol" (VSM-250),[3][6] and was expected to manufacture the main series.[7] Funding for the project was withdrawn in 2002.[8]

After the collapse of the Soviet Union the plant was negatively affected,[1] Reduced federal budgets and the inability to quickly change production to new products were both factors in the plants economic crisis. From 1998 to 1999 production fell by 25%; only production of rail vehicle parts was increased, jobs losses of 2000 had reduced the number of employees to 6000 in 1999; a plan to reorganise the entity's structure was not initially successful,[9] and bankruptcy proceedings began in 2000.[10]

Tikhvin industrial site (2001-)

New housing development by ICT Group in Tikhvin for workers (2010). Source: ICT Group

In 2001 the assets of Transmash in Tikhvin were acquired by the ICT Group

Titran (2002-)

The Titran (formerly 'Transmash') plant dated to the developments in the 1960s; it was acquired by ICT Group in 2001, and renamed in 2002. The Titran entity consisted of five subsidiary companies: JSC Titran-Centrolit (ЗАО Титран-Центролит), JSC Titran-Express, JSC Titran-Medokon, (ЗАО Титран-Медекон) and JSC Titran-Hammer (ЗАО Титран-Молот) and the 'Titran Tractor Works' (ЗАО «Тихвинский тракторный завод «Титран – Вепс» or ЗАО «ТЗТМ «Титран»). Combined facilities included manufacture of rail vehicle parts, caterpillar tracks, and tractor and tractor parts, as well as casting, forging, and other metal engineering. Before privatisation the plant had supplied 60% of its output to the Kirov Plant in Leningrad.[11]

In 2002 Титран – Вепс began production of tractors type К-700Т.[12] Although investment was made into the enterprise, the plants economic problems continued in 2003 - turnover was only $20million compared to $750million during in the soviet period - with only 30% of the plant area actively utilised, job losses of over 800 were made from January to September; the enterprise made a significant loss in 2003 and a lack of demand for agricultural tractors caused the company to refocus on railway vehicle equipment as part of a three-year restructuring and modernisation plan - tractor production ceased in 2003.[13]

2000 workers were laid off in June 2004,[14] by 2005 the number of full-time employees remaining was reduced to 1000.[5]

The Titran-Express (Титран-Экспресс) factory was restructured and modernised between 2007 and 2008, with manufacturing re-focused on rail vehicle components and caterpillar tracks.[15][16][17] As of 2012 the factory produces tank tracks, bogies for electric trains and freight wagons, other railway vehicle components, and welded structures.[18]

In 2016 United Wagon Company (ICT Group subsidiary) became the sole owner of Titran-Express.[19]

Tikhvin Ferroalloy Plant (2007-)

In 1994 a company was established to construct a $110million plant capable of producing 140,000t of ferrochromium and 150,000t of crushed slag per year. A referendum in 1997 in Tikhvin opposed the establishment of the plant; after acquisition by the ICT Group in 2001 of the unfinished project the company announced its intention to complete construction of the plant.[20]

Tikhvin Ferroalloy Plant (ЗАО "Тихвинский ферросплавный завод" (ТФЗ)) began production in 2007.[21]

In April 2008 the plant's owner Oriel Resources Ltd. was acquired by Mechel. A low world demand for ferrochromium delayed the factory's ramp up to full production with two furnaces started in 2007, and two in 2008, the company began production from concentrated chrome ore from the Mechel held Voskhod chrome processing plant (ГОКа "Восход-Хром".[22]) in Kazakhstan in early 2009. The plant's four furnaces have a maximum power of 22.5 MW. In 2009 production was 53,900t (chromium equivalent) with a typical chromium content of 69-70% in the ferroalloys.[23]

In 2010 it employed 720 people.[21] The opening of the plant in contravention of the local populace's wishes remains contentious, and has been seen as an example of government colluding with big business.[24][25]

In 2013 Mechel sold its ferroalloy holdings including the Tikhvin plant to Yildirim (Turkey).[26][27]

Tikhvin Freight Car Building Plant (2012-)

TVSZ freight wagons, 2011. Source: ICT Group

In 2005 ICT Group president Alexander Nesis presented plans for a new rail wagon building plant at the Tikvin industrial site built to meet an expected demand for vehicles in Russia from private operators, as well as taking a share of the estimate 7000 wagon p.a. attrition rate of rail wagons on the Russian rail network.[28]

In 2008 the Eurasian Development Bank, NOMOS Bank and Vnesheconombank agreed loans of $215, 130, and $215million respectively towards the construction of a new plant;[29] the plant was projected to have a cost of $800 million, with a production capacity of over 10000 wagons per year within a production space of 220,000 m2 (0.22 km2), and to employ 3500 people. A further $200 million (6billion roubles) was to be spent on constructing 170,000 m2 (0.17 km2) of housing space for the plant's workers. The company agreed licensing arrangements for the use of a Barber type bogie developed by Standard Car Truck Company (part of Wabtec),[30] and acquired designs from Starfire Engineering & Technologies (Kansas, USA) for hopper, bottom discharging hoppers, and flat (ISO container carrier) wagons.[31][32]

In 2010 the first foundry on the site was completed, with a production capacity suitable for the production of 4000 bogies per year.[33]

The first major order contracts were signed with Transgarant in 2010 for 150000 wagons over 4 years,[34] and a 5-year contract with RZD subsidiary Freight Two.[35]

The Tikhvin Freight Car Building Plant (Тихвинский вагоностроительный завод (ТВСЗ)) was formally opened by Russian Prime Minister Vladimir Putin on 2 February 2012.[36] During the design and construction phase the capacity of the plant was increased from 10000 to 13000 wagons per year, with an increase in casting capacity from 70 to 90 thousand tonnes; the capital cost also increased by $200 million.[37]

References

  1. 1 2 Sources:
  2. ↑ Дмитрий БАГРОВ (10 November 2003), `Титран` недолго искал свою нишу на рынке, ev.spb.ru (in Russian)
  3. 1 2 3 "History of the company", www.tihvin-titran.ru, CJSC Titran-Express, retrieved 1 February 2012
  4. ↑ Sources:
  5. 1 2 Сокращенные работники тихвинского завода "Трансмаш" за первый год открыли семь новых бизнесов и будут открывать новые, www.stockmap.ru (in Russian), 22 February 2005, В 1995 г. на этом предприятии работали более 22 тыс. человек, то есть почти каждый третий житель Тихвина, сейчас численность штатных сотрудников завода насчитывает не более 1 тыс. человек.
  6. ↑ Sources:
  7. ↑ Sources:
  8. ↑ Андрей Гурьев (2009), Андрей Гурьев И какие же русские не любили быстрой езды? История обреченного проекта (PDF) (in Russian), p. 352, 2002, март — прекращение со стороны МПС по инициативе министра Г.М. Фадеева финансирования проекта «Сокол»
  9. ↑ Тихвинский "Трансмаш" породил "дочек", www.dp.ru (in Russian), 3 November 1999
  10. ↑ ""Заводу Трансмаш" грозит банкротство", www.dp.ru, 5 December 2000
  11. ↑ Sources:
  12. ↑ ТИХВИНСКИЙ ТРАКТОРНЫЙ ЗАВОД "ТИТРАН-ВЕПС" ЗАКЛЮЧИЛ КОНТРАКТ С "РОСАГРОЛИЗИНГ", www.stockmap.ru (in Russian), Агентство Бизнес Новостей, 7 July 2002
  13. ↑ Sources
  14. ↑ ЗАО "ТЗТМ "Титран" (Ленобласть) сократило 2 тыс. сотрудников вместо планируемых сокращений в 2,7 тыс. человек., www.stockmap.ru (in Russian), 28 June 2004, retrieved 1 February 2012
  15. ↑ Компания "ИСТ-строй" приступила к реконструкции производственных площадей Тихвинского сборочного завода "Титран-Экспресс", в результате которой будет проведена передислокация нескольких цехов предприятия, www.stockmap.ru (in Russian), 17 May 2007
  16. ↑ В Ленобласти открылось модернизированное производство гусеничных лент для оборонной промышленности, объем инвестиций - 100 млн руб, www.stockmap.ru (in Russian), 18 April 2008
  17. ↑ "Титран-Экспресс" – будни нового производства, www.pro-rzd.com (in Russian), 31 July 2008
  18. ↑ "Line of activity", www.tihvin-titran.ru, Tihvin Assembly Plant - Titran Express, retrieved 1 February 2012, also see section For Our Clients
  19. ↑ "United Wagon Co takes 100% ownership of Titran Express", www.railwaygazette.com, 30 Mar 2016
  20. ↑ Тихвин гонит ферросплавный завод, www.dp.ru (in Russian), 9 April 2004
  21. 1 2 ЗАО "Тихвинский ферросплавный завод", trudslava.ru (in Russian), Трудовая слава, 8 July 2010
  22. ↑ Горно-обогатительный комбинат "Восход", www.mechel.ru (in Russian), Mechel
  23. ↑ Sources:
  24. ↑ "Борьба с феррохромом за гражданское общество", www.oprf.ru, Общественная палата Российской Федерации (Public Chamber of Russia), 12 October 2011
  25. ↑ Каторгина Вероника Сергеевна; Семенов Владимир Анатольевич, Проблемы и пробелы в референдарном законодательстве Российской Федерации (политико-правовой анализ)., jurnal.org (in Russian)
  26. ↑ Popova, Nadia (1 August 2013), Mechel sells chrome assets to Yildirim Group for $425m
  27. ↑ "Mechel Announces Closing Deal on Disposal of Several Ferroalloy Assets", www.mechel.com (press release), 27 Dec 2013
  28. ↑ Sources:
  29. ↑ "US$560m loan for Tikhvin wagon plant", www.railwaygazette.com, Railway Gazette International, 28 October 2008
  30. ↑ Sources:
  31. ↑ "Russian carbuilder taps U.S. designer", Railway Age, Simmons-Boardman Publishing Corporation: 7, August 2009, retrieved 24 October 2013
  32. ↑ "Russian carbuilder taps U.S. designer", Railway Age, Simmons-Boardman Publishing Corporation: 7, August 2009
  33. ↑ Группа ИСТ отрыла в Ленобласти первую очередь литейного производства ТВСЗ, interfax-russia.ru (in Russian), Interfax, 8 July 2010
  34. ↑ "Tikhvin signs first major wagon order", www.railwaygazette.com, Railway Gazette International, 31 August 2010
  35. ↑ "World rolling stock market December 2010", www.railwaygazette.com, Railway Gazette International, Russia, 14 December 2010
  36. ↑ "Putin opens factory to produce a wagon every 24 min", www.railwaygazette.com, Railway Gazette International, 2 February 2012
  37. ↑ МИЛАНЕ ЧЕЛПАНОВОЙ (interview with ТВСЗ chairman ИГОРЬ ЦЫПЛАКОВ) (31 May 2011), Сейчас рынок продавца, но уже в 2012 году дефицита вагонов не будет, www.rbcdaily.ru (in Russian), РБК daily

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