Kazan, Russia - Egida has invested Euro 30m to upgraded its plant in Kazan, taking capacity to 16, 000 tonne/year flexible foam, according to company sources.
Egida funded the investment from its reserves and a loans from Alfa-Bank. Alfa-Bank estimates the project will pay for itself in by 2016.
"Previously the plant also produced foam, but was operating at low production capacity, now it has been upgraded with new facilities and new equipment. The new plant now only uses German equipment from Baumer, Henecke GmBH and Fecken-Kirfel", said commercial director Razil Shavaliev, in a telephone interview. He added that the upgrade included a new ventilation system to improve the working environment.
"Last year, we completed pre-commissioning activities, and this year we launched the entire production cycle. In future we intend to boost production capacity by half so the annual production is projected to reach24,000 tons per year", he added.
Shavaliev added in later phases of development, Egida plans construction of a 12,000 m2logistics warehouse, installing a mattresses production line and lines to process polyester.
According to Shavaliev: "about 85-90% of the plant's products will go on the production of furniture". At the same time he pointed out that the production of the upgraded plant will be supplied "across all territory of Russia", so the company definitely intends to improve its presence not only in the centres of the country like Moscow and St. Petersburg, but also in the remote regions.
The plant now has capacity to supply 20% of the foam needed for the Russian furniture market, Egida+ said.The firm lists the following Russian furniture makers as clients: March 8, Elegy, Ormatek, Good Style, Kalinka, Mobel & Zeit.