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№03 2012 Investments №03 Innovations 2012 and Infrastructure Theme: Production Readiness p. 5 p. 5 INVESTORS — over 50 p. 6 companies p. 3 p. 4 p. 3 p. 7 p. 4 p. 6 Sosensky Lyudinovo District Industrial Park Industrial Park p. 7 p. 7 Industrial parks of Kaluga Region High-Potential Development Areas have now a total area — 5386,3 ha (2.5 ha Industrial Park Locations has been allocated to investors) Editor’s Note One of the few Russian states, Kaluga Re- to set up industrial parks, which are now com- easy to use product offering investors an op- gion managed to create a highly favorable bined with all available public-private part- portunity to make a faster entry to the market business environment. Regional policies con- nership mechanisms. and a better grip on their risks and costs. ducive to a good investment climate have at- Several development projects for in- What advantages industrial parks offer tracted large foreign and Russian companies dustrial parks are currently implemented to new companies, how many companies are to the region. Kaluga Region is often referred in Kaluga Region. Government-owned parks located in the regional industrial parks, what to as having attractive power to investors who and one private park are set up and new lots the demand for production lots is like and appreciate industrial parks with ready indus- are intensively developed. Three industrial what factors help implement various projects trial and engineering infrastructure. parks: Grabtsevo, Rosva and Vorsino – have in Kaluga region – all that in this Newsletter. The first industrial park in Kaluga Region obtained certificates from the Russian Asso- was set up in 2006. Interestingly, Kaluga Re- ciation of Industrial Parks, which confirm that gion pioneered industrial parks in Russia, those parks comply with all the conditions an Svetlana Kozeneva, an efficient business development tool long industrial park should comply with. Director, Kaluga News Agency known abroad. Kaluga Region was the first The experience of Kaluga Region has state to receive loans from Vnesheconombank shown that industrial parks are a simple and www.arrko.ru №03 2012 Investments №03 Innovations 2012 and Infrastructure Events Novo Nordisk Constructing Plant in Kaluga is confident that products of the new complex industry. Kaluga Region has placed a special Novo Nordisk, the world’s leader in will be of highest quality. According to the emphasis on the development of the diabetes care for the past 90 years, has governor of Kaluga Region, the construction pharmaceutical industry as it is crucial to launched construction of a biotechnological of the modern plant, which will produce people’s health. The new complex is expected complex in Grabtsevo Industrial Park. Lars medicines to treat diabetes, is of key to start getting its first licenses in Q3 2013 Rebien Sorensen, President of Novo Nordisk, importance to the Russian pharmaceutical and to start producing insulins in 2014. Volvo Diggers to Be diggers in 6 models. Project investments Pat Olney, President of Volvo Construction Manufactured in Kaluga are estimated at SEK 350 million. The plant Equipment, demand for Volvo diggers, which Volvo is setting up a new digger plant, its will be innovatively equipped and will be in will be manufactured in Kaluga, will be as 7th digger plant in the world, in Kaluga-South full compliance with Volvo’s capacity and high as the demand for Kaluga-manufactured Industrial Park in Kaluga Region on a 15 ha lot. environmental requirements. The new plant Volvo trucks. The plant is expected to launch production of in Kaluga Region emphasizes Volvo’s serious diggers in 2013. Its annual output will be 2,000 plans in the Russian market. According to SsangYong E&C Rus to Construct designed for Pravoberezhie, a fast growing complexes, playgrounds, entertainment New Housing Complex in Kaluga neighborhood in Kaluga. The total area of the areas, barbeque areas, an open air stage, etc. Early in May SsangYong E&C Rus laid the complex reaches 300,000 sq.m. 16 apartment According to the governor of Kaluga Region, first stone to the foundation of Park Palace, blocks containing 2,000 new apartments for the joint project with SsangYong E&C Rus, a unique housing complex in Kaluga, which, the people of Kaluga will be built over the next one of the leading construction corporations, according to Ho Ti Ke, Director General of 5 years. Park Palace has a large infrastructure will herald in a new stage in the housing SsangYong E&C Rus, has been specifically including a school, 2 daycare centers, 6 health construction in Kaluga Region. PORCHER INDUSTRIES District, signed a trilateral cooperation the equipment to be installed soon, the plant to Set Up Technical Textiles Plant. agreement on carbon fabric capacities Porcher is expected to be officially opened in the Henri Brosse, Financial and Administrative Industries intends to set up at facilities, which spring of 2012. The project investments are Director of Porcher Industries from France, it rents from Agroplastmass in Borovsk. The estimated at about EUR 6 million. The plant Anatoly Artamonov Governor of Kaluga Region purchased equipment has been successfully will be operated by staff of 50 people. and Gennady Novoseltsev, head of Borovsk tested at the existing facilities in France. With Foreign-Born Labor Force Issues to Irina Batishcheva, regional Deputy Minister there and their need for workforce. As regards Discussed in Kaluga Region of Labor, Employment and HR Policies, potential simplifications of quote requests, Over 100 HR specialists from foreign and most foreign-born workers are employed in the meeting participants demonstrated Russian companies present in Kaluga Region Kaluga, Obninsk and districts in the north most enthusiasm about proposed application have attended an annual meeting convened of the region. That can be accounted for by of Migration Quotas, an Internet-based by the regional Ministry of Labor. According numerous investment projects implemented automatic system of sending quote requests. AstraZeneca is Content with Project Progress them more accessible for Russian consum- now, phase II is to be completed in 2014. By A statement to that effect has been made ers, the company currently constructs its own the end of phase III in 2019 the plant is ex- by Gennady Pyatsky, Production Director at pharmaceutical facility in Vorsino Industrial pected to be operating at its full capacity by AstraZeneca Russia, at Russia 2012 European Park. In 2013 phase I of the project is expect- producing 500 million pills per year. In total, Conference. Crucial for the company, the Rus- ed to be completed and production is to be AstraZeneca invested about USD 170 million in sian market has already seen over 40 original launched. By now initial construction works localization of its production in Russia medicines of the company registered and have been successfully completed and main permitted in the Russian Federation. To make buildings are being assembled. Also designed 2 №03 2012 Investments №03 Innovations Production Readiness 2012 and Infrastructure Grabtsevo Industrial Park Location: Kaluga, 25 km off M3 Ukraine highway, 15 km off P132 Kaluga-Tula-Ryazan highway and 200 m off the ring road connecting the two highways. Grabtsevo Industrial Park is an industrial de- velopment lot with a developed infrastruc- ture, including water supply, waste water dis- posal, gas and energy supply, a storm water drain and access routes. 4 1 6 Total area — 5 2 8 7 3 533 ha Grabtsevo Industrial Park is property Allocated to investors — of Kaluga Region Development Corporation OJSC. The project was financed through 267 ha a loan from Vnesheconombank. Available for production facilities — 242 ha Utility line area — 24 ha Resident Companies: 1 2 3 4 5 6 7 8 packaging line, production automobile body steel bumper manufacture production production of solid of insulin manufacture components service production of car fuel of car safety dosage forms manufacture center and painting tanks glass We are offering investors a very clear product, which eliminates all infrastructural risks. Investors get a construction ready land lot and clearly defined rights associated with it. All industrial parks have all the required communications, engineering networks and capacities at their border and a high quality transport and logistics infrastructure. What an investor has to do is to construct a plant enjoying full freedom of contractor and partner choice. An investor can choose to purchase capacities, get a long-term lease or lease capacities, which have been constructed so as to meet such investor’s specific needs. An investor can set up their capacities in A-Park or B-Park, where brownfields are available’. Nikolay Milkis, Acting Director General of Kaluga Region Development Corporation OJSC А-Park Industrial Park Location: a 20 ha land lot in Grabtsevo industrial zone in Kaluga. Benefits: 1 (door trims manufacture) 1 2 2 The project is implemented by a partnership of Kaluga Region Development Corporation OJSC and ESPRO Government Company. Construction works are performed based on a build-to-suit (suspension components manufacture ) principle. Benefits: — lease of industrial land lots in an area adjacent to a large automobile concern; — efficient logistics for car parts suppliers: parts can be produced, assembled and stored in an area adjacent to the plant of Volkswagen and several kilometers off the plants of Peugeot-Citroen and Volvo; — with its developed infrastructure, A-Park offers its lessees the required water supplies, waste water disposal, gas and energy supplies. 3 №03 2012 Investments №03 Innovations 2012 and Infrastructure Production Readiness Rosva Industrial Park Location: 18 km south-west off Kaluga and 2 km off M3 Ukraine highway This project is property of the Ministry of Eco- nomic Development. The land lot is leased from Kaluga Region Development Corporation OJSC. Available infrastructure: water supply, The project is financed through a loan from waste water disposal, gas and energy supply, Vnesheconombank.