OMK to Spend RUB 2 Million Developing Social Business Initiatives in Perm Territory

The United Metallurgical Company (AO OMK, Moscow, represented in the Perm Territory by the Chusovoy Metallurgical Works, AO CMW) announces the launch of the second Start Your Own Business competition of social business initiatives in the Perm Territory. The competition is Phase 2 of a program of the same name which OMK is co-sponsoring with the Perm Territory Ministry of Industry, Business Development, and Trade, the Perm Business Development Foundation, the Chusovoy Municipal District Government. The project is partnered with the Perm branch of the Pillar of Strength Russian National Non-Government Medium-Sized and Small Business Association.

A press conference reporting the status of the competition was held at the Interfax Agency's Perm office. It was attended by Perm Business Development Foundation NGO Director Vera Tsypushtanova, Chusovoy Municipal Business Support and Development Foundation MFO Director Olga Starkova, AO OMK Sponsorship and Charity Project Lead Olga Mironova, AO CMW Managing Director Vladimir Kirzner.

Press conference attendees talked about the successful social business initiatives in the Township of Chusovoy that were the Competition's 2016 nominees as well as financing and information resources (grants, subsidies, loan programs) available in the region and district and needed to open a socially minded business. Chusovoy Municipal Business Support and Development Foundation Director Olga Starkova emphasized the importance of the program as a factor in developing municipal education, addressing social matters, and easing social tensions. She noted that Chusovoy residents were showing more interest in the Start Your Own Business Competition.

Applications to the competition are accepted between May 26 and June 5. On June 15, a panel of experts will name the 20 most promising business plans that are slated to receive target-oriented business development grants of between RUB 100,000 and 150,000. The total competition budget is RUB 2 million.

"Less than 0.5% of the Perm Territory's plethora of small and medium-sized businesses are engaged in socially responsible commercial activities. Worldwide, this number could be as high as 3.5% which means we still have a ways to travel, and there is room for improvement. Thanks to OMK's initiative and support in Chusovoy, we are able to follow the partnership social business model, when community organizations, non-profits, volunteers, representatives of municipal executives are invited to participate. All of this helps initiatives achieve success and find their target niche", noted Perm Business Development Foundation Director Vera Tsypushtanova.


This is the second year in a row that the Start Your Own Business Program has been going on in the Chusovoy Municipal District. And this is real comprehensive, enabling people not only to start their businesses and create jobs but also to address social issues in the region. We are convinced that Chusovoy residents will take advantage of that and take another step in developing our area", commended AO CMW Managing Director Vladimir Kirzner.

Background

As a first stage, the Start Your Own Business contest included a free Social Business School acceleration program which was attended by 36 projects. Starting in April, the School has attendees working on social business initiatives, develop strategies, train in marketing, financial planning, resources that are needed to launch a project, the foundations of social design. Training will take all the way through October 2017. The attendees will get the requisite knowledge as well as mentoring.

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Social business initiatives are an innovative activity targeting or mitigating social issues in a sustainable and economically viable manner. Social entrepreneurs are people wishing to change social reality by working in niches that have escaped notice by the Government and conventional business. They represent micro, small, or medium-sized businesses that see a social problem, can visualize, and proceed to a legal solution using their potential and business skills.

Developing social business initiatives is a new thrust of OMK's social investment. The first such Start Your Own Business program was undertaken by OMK in 2016 in the town of Chusovoy, Perm Territory. It was co-sponsored by the Our Future Regional Foundation for Social Programs and the Perm Territory Ministry of Industry and Trade.

As decided by a panel of experts, the Territory's 20 best social projects were funded with grants to be able to proceed. Nine winning projects were included in the acceleration program run by the Perm Business Development Foundation.

The Perm Territory Ministry of Industry, Business Development, and Trade has given a subsidy of RUB 850,000 to social entrepreneur Anton Gorokhov undertaking a sorted garbage collection initiative in Chusovoy. His project, called “Recycle Your Plastics”, won an award in a competition held by the Ministry.

In February 2017, OMK won an award in the Russian Business Leaders: Trends and Responsibility 2016 Competition sponsored by the Russian Union of Industrialists and Entrepreneurs (RUIE). The Company was named third in the category for companies that support and develop social business initiatives.” RUIE President Alexander Shokhin presented OMK Deputy Chair Natalya Eremina with a badge of honor on March 14.

In 2017, the program to develop social business initiatives was launched in the Republic of Bashkortostan and has continued in the Perm Territory.
A series of events will take place in Chusovoy in 2017 as part of the program:
March 14: a kick-off conference on social business initiatives;
April 3 to October 26: Social Business School acceleration program;
May 26 to June 15: Start Your Own Business competition of social business initiatives;
October: launch of social projects;
November 11: a forum on social business: a look to the future. Acceleration Program Graduation.
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The Chusovoy Metallurgical Works (AO CMW) is a national leader and one of Europe’s largest manufacturers of road vehicle springs. It manufactures over 350 spring types, controls 68% of the domestic market, and is an exporter as well. The facility also produces rolled goods of different kinds. CMW has a 135-year long history.
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United Metallurgical Company (AO OMK) is one of Russia's premier product manufacturers for energy, transportation, and industry leaders. OMK makes pipe for various applications, railway wheels, sheet metal, pipeline connectors, valving, and vehicle springs. OMK owns five major manufacturing facilities in the metallurgical sector: Vyksa Steel Works (Nizhniy Novgorod Region), Almetyevsk Pipe Plant (Republic of Tatarstan), Trubodetal (Chelyabinsk Region), Blagoveshchensk Valve Plant (Republic of Bashkortostan), and Chusovoy Metallurgical Works (Perm Territory).
Principal customers for OMK products include domestic and international leaders, such as: Gazprom, Russian Railways, LUKOIL, AK Transneft, Surgutneftegaz, Rosneft, Sibur, ExxonMobil, RoyalDutch/Shell, General Electric, Samsung, KamAz, GAZ, MAZ, and others. OMK exports to over 30 countries.
OMK Board Chair is Anatoly Sedykh, Deputy Chair is Natalya Eremina, and Company President is Vladimir Markin.
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Media Contacts:

AO CMW Public Affairs and Corporate Services Department
Alexander Ivanov
Phone: 8 (34256) 6-37-56
ivanov_aa@chmz.ru