Vodka production line is Eastern Europe's most modern

In Rybnitsa, Italian equipment now produces 40,000 bottles of vodka per shift (file photo)

RYBNITSA (Tiraspol Times) - Rybnitsa's spirits distillery just started producing for the first time on a new production line which industry insiders say is the most modern in Eastern Europe.

Per shift, the factory is capable of producing an output of 40,000 bottles. If working the full three shifts, that comes to 120,000 bottles per day. Currently bottling vodka, it plans to also include red and white wine when the wine season starts.

The Italian equipment is the result of an investment of 750,000 Euros (nearly $1m). To date, nothing as advanced exists in neighboring Moldova or Ukraine, or in any other countries in the region, including Russia.

" - Our Western European partners had not expected that here in Pridnestrovie, we would undertake the acquisition of such ultramodern equipment," said the distillery's spokesman. In Italy, the exact same equipment is installed and producing massive quantities of Martini Vermouth, Bacardi Rum and Chianti wines for local consumption as well as for export.

According to the company's chief financial officer, the investment in the new automated equipment will pay for itself within two years.

In addition to exports, the Rybnitsa distillery will also supply to the local market and has its sights set on a 90% market share.

Company privatized in 2005

The company was privatized in 2005 as part of a series of Western-style market reforms initiated by Pridnestrovie's reform oriented government. As part of the conditions for privatization, the new owners had signed an obligation to invest a minimum of $300,000 in upgrades and modernization. But instead of that amount, the factory was redesigned and it was decided to earmark $1,5m for capital expenditures.

Originally known as the Rybnitsa Wine and Brandy Combine, the distillery, which is located on the outskirts of Rybnitsa, is one of the oldest factories in the city: This year, it will celebrate its 73th birthday.

Prior to privatization in 2005, it was operating at only 30% of its capacity and suffered under bureaucratic Soviet-style mismanagement. Due to Pridnestrovie's status as an unrecognized country, it also had trouble opening new export markets.

In September of 2005, all 100% of the company's shares were auctioned off in a privatization bid worth $241,000.

The PMR government started privatizations on a modest scale in the late 1990's, after the transition to a market economy and after having embarked upon a program of economic liberalization. Over the last five years the process of selective privatizations has accelerated. The privatization program for 2006 included approximately 130 state-owned companies.

Moldova, which still pursues a territorial claim on what it calls "Transnistria" (an incorrect, non-official name for the country) has announced that privatizations are illegal and will be overturned upon integration of Pridnestrovie within a joint Moldovan state. In response, voters overwhelmingly rejected such a proposal in the September 2006 independence referendum, with 94% turning down a joint state with Moldova.

See also:
» Black caviar exports from Pridnestrovie inaugurated with Danish partner

On the web:
» The right way to privatize: Putting people first

Erratum: As originally published, this article erroneously indicated that brands such as Martini, Bacardi and Chianti were being bottled on this production line. While these brands are indeed bottled on similar equipment, we should clarify that this takes place in Italy and not in Rybnitsa, PMR, at the current time. 100% accuracy pledge