The revival of “Vologda textile” – National Investment Company and the Group TRINFICO give new life to one of the best enterprises in the industry
A consortium consisting of the National Investment Company (NIC) and the Group TRINFICO launched a project to revive the company “Vologda textile” which stopped its operations in 2013 and is currently under bankruptcy procedures. The project is coordinated and implemented with the support of the Industry and Trade Ministry of Russia and the Government of the Vologda region.
In June 2014 the Ministry of Industry and Trade of Russia has established an interdepartmental working group to conduct a comprehensive analysis of the situation at JSC “Vologda textile”. In 2015 in addition to the Administration of the Vologda region, the creditor banks, the Russian Trade Union of Textile and Light Industry, the working group included a consortium consisting of the National Investment Company (NIC) and the Group TRINFICO.
In the period from January to August 2015 the working group had conducted a technical analysis of the production capacity of the plant, developed a comprehensive program of re-focusing JSC “Vologda textile” to the production of fabrics and finished products made of cotton as well as prepared a plan to re-launch the enterprise.
The participants of the consortium set up the management company “Zemstvo”, with the main task to the implement a comprehensive program of repositioning of the plant JSC “Vologda textile” taking into account the changing structure of demand for products and the availability of raw materials. While preparing for the launch a partial re-equipment of the plant had been already conducted.
Chairman of the Board
Management Company “Zemstvo”
«In early 2015, together with the Administration of Vologda region and the creditor banks, we started to work on this project. By creating new jobs, we focused on attracting professionals with more than 15 years of experience in the area of manufacturing and sale of textile products. The period of modernization of equipment at the plant took place in 2010-2012, and currently the technological equipment the company is considered one of the most modern in the industry. Of course, in order to start production of higher quality products and implement cost control, we need to invest more in equipment and technology. In 2016, the size of investment in the project will amount to about 0.5 billion rubles. Initially, the volume of production is expected to reach 100 thousand meters of cotton fabrics, and by the end of III quarter of 2016 we expect to increase this figure to half a million linear meters per month. The sector is not an easy one, but thanks to a professional team, we look forward to the successful implementation of the new development strategy of “Vologda textile”. This will allow us to take a steady course on import substitution and to bring the plant to the market leadership for some types of fabrics.»
TRINFICO Investment Group was founded in 1993, and today is one of the largest independent companies in Russia, specializing in serving institutional and private clients. The company offers a diversified portfolio of financial products and services, including trust management of assets of private pension funds, the management of closed-end investment funds (CEIF), individual structured products, real estate management, investment-banking operations and brokerage and depository services. The basic principles of TRINFICO are responsibility, effectiveness and credibility. Since its inception and until now TRINFICO has maintained a private and independent nature of the business. TRINFICO Investment Group has a rating of reliability and quality of service of “A ++” (“exceptionally high / the highest level of reliability and quality of service”), according to the agency Expert RA (RAEX). The rating outlook is “stable.”
National Investment Company
National Investment Company (NIC) conducts systematic work in order to attract investors into the Russian economy, through active interaction with the investment and sovereign funds, strategic investors. NIC is specializing in creating new investment instruments in Russia aiming at attracting major Russian and foreign institutional investors and implementing cross-border transactions.
The largest enterprise of the Vologda region. Vologda flax plant named after the 50th anniversary of the Young Communist League was founded in 1936. In 1980-x the plant was producing up to 25 million meters of fabric per year, taking one of the first places in the linen industry of the USSR. In 2013, during a visit to Vologda Vladimir Putin congratulated the women of this company on the 8th of March. Until its stop the plant provided about 50% of the total production of linen fabrics in Russia. Its production capacity allows the plant to produce more than 1 million meters of fabric per month.