Progressive growth line

Increasing deliveries to Russia, import substitution, modernisation of equipment — how the Novogrudok Gas Equipment Plant countered  to economic challenges

Novogrudok Gas Equipment Plant is one of the largest manufacturers in its segment in the CIS market. For decades, the vast majority of the products of this enterprise found its customers abroad. At the same time, part of the export was shipped to the EU countries. Recently, for well-known reasons, the import into the EU of the main commodity item produced by the plant — gas cylinders for propane-butane — has been banned. However, having lost a significant part of the sales markets, getting more complicated and more expensive logistics, as well as difficulties associated with long, up to a month, delays in payments from Western partners, literally in a matter of months, the plant’s administration managed to take the necessary measures to stabilise the situation and save jobs.

We survived and adapted

  “I have to say, at first we were in some confusion, because we did not know how the situation would develop further. However, no time was wasted. We put a lot of effort and even ingenuity in solving the problems that arose. This eventually paid off. I can already say with confidence that we survived and adapted to work in the new conditions,” explains Director of Novogrudok Gas Equipment Plant Igor Kaptilovich.
This is evidenced by the indicators of the plant’s economic activity: for nine months, production volumes, exports, profitability and profits increased compared to the same period last year. The company partially restored deliveries to the European Union: we are talking about products whose codes were not subject to restrictions. While difficulties with logistics persist, this affects the cost and entails an increase in the cost of the assortment. Nevertheless, partnerships are gradually being restored. 

Electric and gas welder Aleksei Korneichik

“However, the most important thing that allowed us to improve last year’s figures in the third quarter was deliveries to Russia. Exports to this country increased by 11 percent, and if last year Russia’s share in the total export of our enterprise was 61 percent, now it has grown to 81 percent. The fact is that earlier in this market there were many offers from Western manufacturers that competed with us. Now, in many respects, they have lost the opportunity to trade with Russia, and additional niches have been vacated for us, which we are trying to occupy as firmly as possible. In this country, we have a developed dealer network with representative offices in all regions — from Kaliningrad to Vladivostok,” adds Igor Kaptilovich. 

Chance to prove themselves

Import substitution has become one of the main directions for the long-term development of the production base of Novogrudok Gas Equipment Plant. Today, the process of replacing Western manufacturers in the market of shut-off valves for water and gas, gas-balloon equipment for cars, gas metres and much more is underway. Many directions and points of application for new developments of the engineering service of the enterprise have appeared. Due to the cessation of supplies from Western countries of a number of commodity items in Russia and Belarus, their shortage has formed, which opens up new opportunities for domestic producers.

Electric and gas welder Matvei Valevsky

For example, it turned out that previously all fittings for certain types of gas tanks in Russia were of European production. 
Novogrudok mastered the production of two types of such goods. Next in line is the development of three more. And in the future, the plant plans to completely transfer this production line to saturate the markets of Belarus and Russia. 
In the future, the specialists of the enterprise are also going to look for new demanded products, the production of which will be mastered.
In addition, the cessation of supplies of a number of imported goods gave the company a chance to prove that the traditional products of the Novogrudok plant are not inferior in quality to foreign counterparts, since they are produced exclusively from the highest quality raw materials on modern equipment, identical to that used by Western European competitors.

Investment in the future

 “The most important thing in our activity is not to rest on our laurels, to follow the trends in the markets, the transformation of the global economy. We are already making plans for 2023. Investments in equipment will exceed the sums spent for these purposes in the current year. In October alone, we visited four specialised exhibitions in Moscow, where our specialists got acquainted with the equipment offered and made sure that there is no shortage of it. In the future, we plan to simultaneously increase production and replace obsolete equipment with modern ones,” notes the head of the plant.

Project engineer on the new weber robotic gas cylinder welding line Maria Sukhova

On November 1st, the third robotic line for the production of household cylinders was put into operation at the plant, which will increase the volume of their production. Fifth generation robots are more energy efficient and accurate, which will undoubtedly have a positive impact on product quality.
Thanks to the timely adoption of the necessary measures, the plant managed to maintain jobs and all social guarantees for employees, almost a thousand of whom are residents of the regional centre. The factory dormitory is being reconstructed, and the territories adjacent to it are being improved. The enterprise continues to systematically improve the working and living conditions of its personnel. 

By Katerina Charovskaya
Photos by Aleksey Bibikov