DIA “Kuzbass”: the strategy of long term presence
19.04.2010
«Delovoy Kuzbass («Business of Kuzbass») Magazine , Issue #4, April, 2010 Only the companies which adhere to a strategy of long term presence and are aimed at a stable business growth can have prospects for a successful future. The management of DIA ‘"Kuzbass" is confident that such a growth can be achieved only by applying a system approach to industrial engineering, including strategically oriented management, realization of new technology, efficient financial and social policy.
Diversified Industrial Association (DIA) «Kuzbass» close corporation incorporates over 15 coal mining, machine building and agricultural companies. The in-house divisions are involved in research and development, exploration and boring activities, delivering products promptly to Russian and foreign consumers. Such an approach results in a stable growth of production volume at all points, increase of product quality and efficiency of distribution.
«Zarechye» mining close corporation is a holding comprising mining and ancillary enterprises. Last year, which is considered a crisis one, the company increased production of coal from 4,4 to 5,7 mln. tons. It is planned to produce 8 mln. tons in 2010. Such achievements were made possible due to a sustained investment policy, implemented by the company on a system basis. Over the last ten years, more than 10 bln. roubles were invested. This success of the miners relies on modern equipment, efficient technology and guaranteed labour safety, and not in the least, on the skills and professionalism of the people. Raising the amount of production is accompanied by following all the measures of industrial safety. Comprehensive degassing, prevention of emission, inflammation and flooding are carried out in full, means of control and communication are improved. In 2009 «Baikalimsky» 5 m. thick seam was put into operation at «Zarechnaya» mine. «Krasnogorsky» seam at «Alexyevskaya» mine is ready to put into operation. Resumption of «Karagaylinskoye» Mine Management Office Co ltd. construction with its unique FA grade coal reserves is likely to take place, which will definitely result in coal production increase. Growth of coal production brings about the necessity to concentrate larger amounts of run-of-mine coal, that is why re-equipment of «Sputnik» concentrating mill took place in 2008 without halting operation. Its productivity rose from 2,5 mln. tons to 5 mln. tons of coal a year and is expected to rise to 6 mln. tons in 2010. It is planned to invest 100 mln. roubles more in this project. «Zarechnaya» mine has had a good reputation of a reliable supplier for a long time. Its products are delivered to 15 countries of the world. It is obvious that such amount and geography of deliveries require a developed infrastructure. The company is constructing a railway from «Zarechnaya» station to «Proyektnaya» station of the Western Siberia railway, providing itself with access to the main tracks. Railway traffic is planned to start by the end of May this year.
In October 2008 DIA «Kuzbass» started one more enterprise, a specialized coal transfer terminal «BALTIC COAL TERMINAL» closed corporation in the port of Ventspils, Latvia. The terminal is designed for detraining, temporary storage in an indoor storehouse and consequent lading on ships. «BALTIC COAL TERMINAL» has no analogs in the Baltic countries neither in investment nor in technological innovations used in transferring coal. To ensure ecological safety the technology of indoor coal transfer is used, which corresponds to the world standards of environmental protection requirements. The terminal can now transfer 6 mln. tons of coal a year, and after putting the second stage into operation the terminal capacity will reach 10 mln. tons a year.
The year 2010 is the year of a pilot project of the Association to start «Seraphimovsky» electrical technology complex designed to deep process coal at the site of its extraction. It will include a large mine to produce coal of Gas and Gas Fa grades, a concentrating mill and an electrical technology complex to produce a wide range of chemical products of coal, including synthetic motor fuels having no analogs in domestic industry. It is planned to use German technologies of coal processing at «Seraphimovskaya». The factory costing 1 bln. dollars is predicted to be launched in 2015 — 2016. The development of the mining companies of DIA «Kuzbass» is closely connected with the prospects of the machine building companies of the association, namely Europe-integrated group of companies «Yurmash-holding», which comprises «Yurginsky» machine building plant plc., «T Machinery a.s.», Czech Republic, and ESSER, Germany. The machinery produced by the companies of the holding is delivered to the miners of DIA «Kuzbass» and other customers in Russia and abroad. A powerful industrial capacity of the leader of the holding, «Yurginsky» machine building plant, combined with the production potential of the European partners ensure the quality compliance with the world standards. At present Yurmash produces a family of lifting machines, production heading machines, metallurgical products, thermal energy, metallurgical equipment.
Over a billion roubles have been invested in Yurmash over the last three years. Powered roof supports of a new engineering performance standard for thin (0,6 m.) and thick (up to 5, 3 m) seams with an increased resistance of support units to underground pressure were designed and manufactured in 2009. Armored conveyors and stage loaders with an increased service life of panline were manufactured, longwall shearers with frequency regulated drive for medium and thick seams were designed. The 25 tons lifting capacity cranes were updated, truck cranes of 80 tons lifting capacity on special truck chassis and short wheel-base cranes of 30 tons capacity with 4 sections boom were manufactured.
Pursuit for perfection is not simply the motto of the company, but the backbone of the company’s management strategy, which means introducing advanced technologies, updating and diversification, raising intellectual potential, enlarging listed products, increasing production rate and production volume, active social policy.
At present the factory’s capacities are 100 % busy after the drop of production volume in the crisis year of 2009 and has 35% more orders than in 2008, the year before the crisis. «T Machinery a.s.», Czech Republic, is one of the European leaders in the production of mining equipment. In the nearest future the factory is planning to manufacture machines of MB series with a rated voltage of electric drive equal to 3300 V and adapted to be used with conveyors and powered roof supports made in Russia, Czech Republic and Ukraine.
ESSER, a factory in Germany, produces high quality power hydraulics for the mining equipment, mainly for powered roof supports made by «Yurmash-holding». The company has expertise in producing hydraulic legs and hydraulic jacks for the powered roof supports of the leading European producers.
Apart from mining equipment production, the plant’s capacities in producing high quality power hydraulics can successfully be used in a number of other industries including aircraft and oil. In 2010 machine building companies of DIA «Kuzbass» are planning to upgrade mutually the radio-controlled heading machine КПЮ-50 to head drifts sized 35 square meters. The mutual work with «VTLT» company, Germanу, to launch manufacture of switch locomotives, will be resumed.
Alongside with mining and machine building sectors, DIA «Kuzbass» is developing agro-industrial complex, which produces milk, meat, raises cereals and potatoes, produces milk products. The tasks of the agricultural complex are to develop a diversified agro-industrial holding of a complete production and distribution cycle, and creation of a network of social distribution, basically for the employees of the companies association. A good prospect for the stable growth of agricultural products output is provided by investment. The first stage of the modern cattle breeding complex for 600 livestock heads came into operation. It is a free stall barn diary farm with a milking room equipped with «Westfalia serg» machines. A pig breeding complex for 1500 heads has been constructed, reconstruction works in cattle houses, granaries and dining halls, maintenance shop and offices have been completed. It is planned to construct the second stage of the dairy unit for 1200 heads and a meat processing workshop to produce sausages. The intensive development of the agricultural holding allows it to hold its positions on the market of provisions in Kuzbass.
Not only 11 thousand of the Association employees are interested in the development and growth of output of DIA «Kuzbass», but the whole of the Kemerovo region as well. In 2010 the company is planning to invest over 2 bln. roubles in the development of the region. This investment will be focused on miners’ safety, regional social programs, new businesses (hence, new jobs), R&D, innovation.
The basis of DIA «Kuzbass» success is knowledge and activity, experience and creativity, confidence and belief. The people of DIA «Kuzbass» are sure that the basis of stability and confidence in the future lies in the advancement to the fresh gains.
Tatyana Dmitriyeva
