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Empils carries out business re-structuring

In connection with business geography expansion and with the purpose of efficiency of activity increase, Empils carries out a complex of structural transformations. The company is going to concentrate on 3 basic directions - manufacture of decorative coatings, paint and varnish for industrial purposes and zinc oxide. For the effective solving of arising problems, 5 business-units are allocated inside concern: paint and varnish manufacture (Rostov-on-Don, Russia), zinc oxide manufacture (Rostov-on-Don, Russia) paint and varnish manufacture (Odessa, Ukraine), representations in Moscow and in the countries of Central Asia (Almaty, Kazakhstan).

Paint and varnish factory in Rostov-on-Don (ZAO Empils) is the largest industrial platform of concern including the shop of alkyd enamels, shop of special enamels, shop of varnishes and water-dispersion acrylic paints shop. Number of personnel is 1500 people. Zinc white manufacture (ZAO Empils) produces zinc oxide - a necessary raw material component for tyre and rubber goods industries, it is also used while manufacturing ceramics and pharmaceutical preparations. Number of personnel is 200 people.

The tasks of Odessa factory Elaks is providing the market of Ukraine and Moldova with decorative coatings. Using OAO Elaks industrial platform in Odessa, Empils concern is going to increase the volume of manufacture up to 30 thousand tons per year in 2005-2008 and to occupy a dominating share in the Ukrainian market of paint and varnish. Number of personnel is 450 people.

The representative office of Empils in Moscow has the goals of development, introduction and maintenance of infrastructure of premium segment products sales, and also of expansion of concern products’ presence in national trading networks.

The trade mission of Empils in the countries of Central Asia is located in Almaty, the largest city of Kazakhstan. Its primary goals are expanding the presence of products in Central Asia, strengthening of control over the market, improvement of distribution system. The sphere of interests of Empils East representative office includes Kazakhstan, Uzbekistan, Kirghizia, Tadjikistan and Turkmenia. The markets of the states of this region are perspective for the company: in 2004, 23 % of all paint and varnish produced by Empils, that constituted more than 20 000 tons of products, have been sold there. Empils plans to ensure sales growth in the region at a level of 10-15 % in 2005.

At the moment the work on differentiation of functions and spheres of responsibility between managing company of concern and business-units at the local level is conducted. Carried-out actions are going to provide the concern divisions with greater independence, mobility and efficiency, and also to promote increase of their work efficiency.

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