Could you give us
a brief history of Interglass and overview of the
ownership structure?
As to the company Interglass itself, it was founded
two years ago. Steiner Industries bought it in
October during an open auction, when a property
of state-owned joint-stock company Aneko was on
sale because it was on the way to bankruptcy.
So, the history of Interglass itself is only two
years old but the history of the glass factory
is more that thirty years old. This factory started
working at 1971. I can say with proud that it
is the unique factory, which was build in our
republic to provide window glass to Siberia, Kazakhstan,
and Baltic.
What kind of glass are you currently producing?
Is it glass for constructing products or glass
for painters? I did some quick research prior
to our meeting and there are experts who argue
that possibilities for the factory are unlimited?
In reality this factory is not very large but
a variety of the goods is big. We will provide
you our price lists, so that you can see what
we produce and what we plan to produce. Now we
produce sheet, polished, and window glass of different
formats, different width, and different quality,
which is used as in manufacturing as in daily
life. This glass abroad is known as Float glass.
The factory produces twenty million square meters
of glass a year if we take into account that it
is four-millimeter width glass. We can produce
two-millimeter width glass, which is used in automobile
production and glass that is eighteen-millimeters
wide. As I have said before, this factory was
bought two years ago. We spent a year and a half
for a reconstruction and modernization of it.
We have faced a lot of problems while doing this.
It is known that Steiner Industries has already
invested ten million dollars for upgrading the
manufacturing line. What is your expected return
for the investment that you expect and do you
plan to invest more?
I can be more specific saying that the total
number of investments has reached twelve million
dollars. If we turn back to history, we have studied
all the sides of this manufacturing and perspectives
one year before buying it. We invited a company
Glass Invest, which is widely known in Europe
to make an assessment of this glass factory in
Kyrgyzstan. This company also took part in rehabilitating
it. In the beginning we planned to reconstruct
and modernize the factory meeting some deadlines.
However, when we started doing this we faced many
unexpected problems that demanded additional finances.
That is why we just postponed the deadlines. Originally,
we thought of investing seven millions dollars
and spread them over 3 years. However, there is
a Russian saying, which says that if you start
doing something don't say you cannot do it later
on. Thus, we began rehabilitation of this factory
and we finished it. It works already and it is
successful.
According to some statements, your production
is of high quality and you have computerized the
whole process. What are the advantages of a computerization
of a process and upgrading the manufacturing line,
aside the increase of the working conditions,
increased efficiency, and workers safety?
If I name all the kinds of work we have done
rehabilitating this factory it would be a very
long interview. We have a technical director and
you can approach him with this question. Briefly,
an oven was completely newly constructed. We put
1800 tons of glass mixture in it at one time.
We have installed new device brought from Germany
that was not here before. Also, we used some device
brought from Russia.
Considering that Interglass is a largest manufacture
in the CIS region and if the same manufactures
in Kazakhstan and Uzbekistan have the same technology
you have, do you think that these countries would
become your competitors?
There is no similar factory in Central Asia.
There is a factory that produces window and sheet
glass in Uzbekistan, but its power is much less
and it cannot satisfy a demand of Uzbekistan itself.
The quality is also much lower than ours. We have
been informed that Italian company and government
itself would invest in it. However, it is just
in the perspective and so far nobody can be compared
with us. There is no similar factory in Kazakhstan.
There are several small glass factories in Siberia,
Russia. However, the quality of glass is not the
same. We use a method of Quantinton producing
polished glass. Well, you know that a quality
of our glass is very high and even if we have
invested so much into it we would not stop here.
We want to expand the variety of goods we produce
as well as increase production. We would produce
dining dishes, medical dishes, glass furniture,
and toned glass.
Currently, the local demand only accounts for
ten per cent of your production. The factory can
produce 18 million square meters of glass a year
but you said that it is 20 million square meters
you can produce. Considering this large output,
are you planning to expand your markets in Central
Asia. Where are you pressing already? Where are
you exporting and where would you like to export?
Now we work to push our competitors out of our market
because we can certainly state that this is our
market. The factory works slower than we would want
it to do, but nevertheless we work and our glass
is demanded. The volume of production increase and
we are thinking of going to the markets of Turkey,
Iran, Iraq, China, and Saudi Arabia. We are ready
to sell our glass everywhere where it is possible.
This factory is very powerful and it is 100 percent
export-oriented. About 95 per cent of our production
goes outside Kyrgyzstan. The domestic consumption
comprises about 5 per cent. This data is based on
the experience of the ex-factory. However, we have
done some marketing research. Nowadays, our glass
is in Kazakhstan, Russia, Uzbekistan, Tajikistan,
and Afghanistan. We will not stop here. The oven
was started on June, 14 and in a month and a half
we had glass. It is a matter of technology of production.
We input a mixture for the glass production and
we have glass itself in 45 days. Our glass was on
the market on August 1. The president and the German
ambassador came to us to the ceremony of lighting
on the oven. We have been on the market for two
and a half months. We do our best to earn the trust
of Aneko ex-consumers. We emphasize that the quality
of glass increased and the production is stable,
that German company acquired it. |
Before we began taking
care of the factory, it could stop its production
of glass not stopping the oven. For the time this
factory has not worked the connections with the
consumers were lost and this vacuum was quickly
filled with Russian producers. They are our main
competitors. These are Saratov, Solovet, and Bor
glass factories. They have similar technology and
capacity.
Steiner Industries has not invested just in
Interglass but it has two other production companies
in the south of the country. What is a Steiner
Industries' commitment to Kyrgyzstan? Also, if
an opportunity presents itself that you can invest
somewhere else in Kyrgyzstan would you be interested
in investing there?
Well, if we were not interested in investing
to Interglass we would not have done it. This
glass factory is not the first one we have invested
into and the company made more investments later
on. It means that this factory is perspective.
Of course, we will invest more and in a long-term
we are ready to do it.
How would you describe Steiner Industries
social commitment towards Kyrgyzstan? There were
some political moments I have read. It said that
Steiner Industries came to Kyrgyzstan because
otherwise the stagnation of economy will be even
more pronounced. So, we would like to know if
there is a social commitment of Steiner Industries
to development of Kyrgyzstan.
The factory that is in Tokmak is one of the main
employers in this relatively small town. 1200
workers are employed there. It means that 1200
families are provided with a stable income. This
way the company automatically takes part in development.
We also promised to employ all the workers, who
were employed at this factory previously to prevent
the emigration from the country as the majority
of the workers are Russian-speaking and while
this factory did not work many specialists just
left abroad. We have returned some of them. In
order to improve the life conditions of our employees
we are buying a resort place by Issyk-Kul Lake.
We almost finished with documents buying a kindergarten
and a dorm.
I have a question for both of you and you
can answer separately. What is your opinion on
the investments climate in Kyrgyzstan? You are
as a general director of the company and you are
as a foreign investor who came to Kyrgyzstan and
have to do with all the conditions.
Our republic is not in the best condition right
now even comparing to our neighbors. However,
even that your journal has paid attention on the
development of the industries and the issue of
investment means something already. As a citizen
of this state, I can say that our government and
our president do everything possible to attract
as much investment as possible to develop our
economy. There are even people who work specifically
on the attraction of the investments. I think
that all our tax, customs, and legislative capabilities
let the foreign companies; businessmen come to
Kyrgyzstan and are sure that their investments
will not just disappear.
If we talk about our company in particular, we
have invested in business in Uzbekistan. Even
that we have an experience working there we have
noticed Kyrgyzstan. The building of fruit factory
was started six years ago and it works already
four years. There is also a sheet-weaving factory
in the South. We also finish building another
factory in the South. So, there are signs that
show the interest of our company working in Kyrgyzstan
even seven years ago. We are sure that our investments
will grow and they will bring profit. Our company
is German but it has roots in the Asian region.
Thus, it is much easier for us to work here. I
think it will be a good example for other companies.
Interglass has being a successful story and
it seems to be even more successful story later
on. That happens probably because of good management.
For this reason, could you please tell us little
bit about yourself, your prior experience and
how would you like to see Interglass.
Speaking honestly, this big manufacture is new
for me. I have never leaded so many peoples. Today
I am the general director of such a big factory
and there is one more Russian saying. A soldier,
who doesn't want to be a general, is bad. What
can I tell about myself? I am 36 years old. Fourteen
of them I had different kinds of businesses. Before
I became a general director of this company I
was in oil business. I was a manager in several
companies selling oil products. Until now, I own
a gas station. I am married and have four children.
I began my education in Moscow after graduation
from the high school. I have studied at the institute
of management. I have two higher educations- economic
and legal studies.
I would like to say that Mr. Akulbaev is an excellent
example for the new generation.
I don't know what new or good I brought to this
company but I do my best to develop it and I see
perspectives. From the other side I feel the support
from our government and the company. I have no
opportunity to address all my questions to the
president but I surely can approach any manager.
It means that our society is democratic.
The issue of business in Kyrgyzstan is very broad
and we can talk about this forever. I think that
you project is very interesting but not many people
have time to study this in details.
As you approached us as journalists and want
to locate this interview in your journal I would
like to mention that the company Steiner Industries
was called a strategic investor for Kyrgyzstan.
As it has been said, Victor is here only three
months and he had no opportunity to see the progress
of this factory here. He did this from Germany.
I have been here much earlier and I discussed
many issues with Vladimir Stein. We have great
plans. Through your journal I would like to invite
foreign investors to Kyrgyzstan. I do it not as
a general director of the company but as a citizen
of Kyrgyzstan.
Thank you for the interview. |
Mr. Abdyldaev.Nurdin