At its meeting held on June 10, 2014 the Executive Committee approved the project of OJSC NPP Bourevestnik, ALROSA’s branch in Saint-Petersburg, on the construction of the innovation center aiming to expand its capacities for the production of the unique x-ray equipment for diamond-mining industry.

Bourevestnik is engaged in design and manufacturing of the x-ray luminescent equipment for diamond recovery for ALROSA and third-party customers. Today the share of Bourevestnik on the global market of x-ray separators amounts to 25%. Besides, the enterprise manufactures analytical equipment not only for the mining industry but for other spheres of business as well.

Since 2009 the proceeds of Bourevestnik from the sale of its equipment have increased threefold and amounted to some RUB 700 million in 2013. The existing manufacturing capacities and depreciation of fixed assets do not allow Bourevestnik to ramp up its production. Along with that, market research suggests the necessity of an increase in output and launch of new classes of equipment for diamond industry.

In this connection the project on the construction of the Innovation Centre Bourevestnik on the new site, the Special Economic Zone Novoorlovskaya in Saint Petersburg, was developed. Moving the production to a new site will allow creating a technology-intensive production base for the manufacture of sophisticated x-ray equipment, with the possible sales proceeds exceeding RUB 2 billion a year.

'The analysis carried out shows that the production relocation to a new site is more cost-effective compared to upgrading the existing facilities. Smaller floor-space, cost-saving due to the implementation of manufacturing methods, and significant tax benefits within the Special Economic Zone, will allow us to raise labor productivity, create comfortable working environment for the employees, and implement the new equipment development objectives’, Vladimir Tsvetkov, General Director of OJSC NPP Bourevestnik said.

The Executive Committee meeting also approved and submitted for consideration and approval by the Supervisory Board of OJSC ALROSA the new version of the Program of exit from non-core assets of OJSC ALROSA. The Program contains more detailed sequence of actions for the sale of assets, applicants’ admission criteria, and changed periods of sales stages for some affiliates and controlled companies.