Demolishing old structures, building new business

Thanks to the EBRD’s Small Business Support service a Russian demolition and construction company is strengthening and expanding its operations.

While demolition can be a hazardous industry, PromBytStroi is building a secure and environmentally conscious business. Based in Skytyvkar in north-western Russia, the company operates both demolition and construction arms, while it specialises in breaking down buildings and disposing of the resulting waste.

PromBytStroi needed a clear business plan to improve its health and safety procedures and management tools, and to expand its operations.

The EBRD’s Small Business Support introduced the company to an international expert from the construction and demolition industry to help it develop and implement the plan. The project was partly funded by Finland, while the company also contributed its own funds.

Recycling and retraining

Since demolition work entails dealing with large quantities of hazardous materials, disposing of waste in an eco-friendly way carries significant environmental, financial and reputational advantages. Working with the adviser, PromBytStroi has started recycling waste material and on-selling steel for recycling. The company’s safety standards were improved and workers were trained in the use of multiple machines, expanding employees’ skills and enabling more flexible shift scheduling.

Expanding the business

While optimising the company’s demolition activities, the project also enabled PromBytStroi to investigate the best way to expand its building activities. Petrol stations were identified as an ideal target for this development – modern petrol stations with shops, restaurants and rest facilities don’t in this part of the country, so PromBytStroi is bringing a novel service to the area.

Better management, better planning and reduced costs have improved PromBytStroi’s performance. Since the start of the project the company’s turnover has more than doubled and its net profit has more than tripled, while the enterprise has taken on 30 new employees. The company has also purchased the land for its first petrol station complex. From demolition to construction, PromBytStroi is surely building a solid and sustainable business.