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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 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 , 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 . 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, 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

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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.

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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. a storm water drain and access routes.

Total area — 4 5 532 ha 6 3 Allocated to investors — 235 ha Utility line areaй — 1

46 ha 7 Available for production facilities — 2 The infrastructure of Rosva Industrial Park is developed within the framework of the proj- 251 ha ect ‘Development of Industrial Park Infrastruc- ture: Establishment of Vehicle and Related Parts This Industrial Park will also include Cluster’ implemented in Kaluga Region. The a 60 ha land lot provided to Continental. project also includes Grabtsevo and Kaluga- South Industrial Parks.

Resident Companies: 1 2 3 4 5 6 7

МАГИСТРАЛЬ manufacture tire automotive EXHAUST-systems INTERIOR of automobiles manufacture lubricants a service center, transportation automobile vehicle energy unit capital exhaust systems parts repairs

Kaluga-South Industrial Park

Location: along the southern border of Kaluga, north off Kaluga--Tula traffic interchange located along R132 highway. Distance to the highway: 16 km.

5 The project is property of the Architecture Kaluga-South Industrial Park is an in- Department of Kaluga. The land lot is leased dustrial development land lot with a de- from Kaluga Region Development Corporation veloped infrastructure including water OJSC. The project is financed through a loan supply, waste water disposal, gas and from Vnesheconombank. energy supply, a storm water drain and access routes

4 3 Total area — 116 ha Allocated to investors — 1 Resident companies: 2 68 ha 1 2 3 4 5 Utility line area — TRUCK Construction 13 ha Equipment Available for production facilities — manufacture digger manufacture manufacture window 24 ha of trucks plant of chassis and dollies of road rigs hardware

Kaluga Region has received an award for its outstanding contribution to the development of the Russian automotive industry at Adam Smith Conferences’ 15th Russian Automotive Forum 2012. That professional award, which has been awarded for 6 years in a row, is meant for the most successful projects and companies. The output of the automotive cluster in Kaluga Region accounts for 10% of all vehicles manufactured in Russia. Kaluga Region is a home to 3 original equipment manufacturers and 22 manufacturers of automotive parts. Since 2007 the automotive cluster has produced over 420,000 vehicles. As soon as they have reached their full capacity, the automotive manufacturers in Kaluga Region will be producing about 300,000 automobiles. The region sees growing localization, better conditions for cooperation between Russian and foreign companies and improving trainings for specialists in the automotive industry.

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Investments №03 Innovations Production Readiness 2012 and Infrastructure

Vorsino Industrial Park

Location: along M3 highway 69 km off at the border between Kaluga and Moscow regions.

15 Largest in Kaluga Region, Vorsino Industrial Park was the first industrial park in the re- gion and has a developed infrastructure in- 1 cluding water supply, waste water disposal, gas and energy supply, a storm water drain 20 and access routes. The industrial park is suit-

19 able for various industries.

12 22 7 3 8 Total area — 23 2 1,694 ha 21 Allocated to investors — 5 16 1,088 ha Available for production facilities — 13 752 ha 6

17 14 4 18 10 Resident Companies:

11 9 1 2 3 4 ONVEST- Kaluga manufacture perfumery tobacco logistics of TV sets, monitors and cosmetic and blue-ray players products complex The project 5 6 7 8 Triada- is property КНПЭМЗ Impeks of V orsino Industrial Park OOO steel pet medicine building and rolled food mixes steel 9 10 11 12 UKONN Vintrastkom Stroitelny Mir concrete, construction building PVC The regional administration has set up a system of investment support. tools materials depot, mixes panels The system includes industrial parks and mechanisms of administrative logistics center warehouse

support, including individual contacts with each investor, tax privileges, etc. 13 14 15 16 Odisseiprom Evrostroi- Eurofloat Tri-Teko Kaluga Region represents its interests in Moscow via the Representation of tehnologia Kaluga the Government of Kaluga Region under the Government of the Russian furniture construction float truck materials glass service Federation. Critical tools of the region’s investment policies, the following center development institutes receive support from the Ministry of Economic 19 20 17 18 М3 Freight Development of Kaluga Region: Logistic Kaluga a production a production a logistics a logistics and logistics and logistics terminal terminal — Kaluga Region Development Corporation — www.invest.kaluga.ru; complex complex — Agency for Regional Development — www.arrko.ru; 21 22 23 Medena — Agency for Innovative Development — www.airko.org; a production a pharmaceutical metal — Industrial Logistics — www.il.kaluga.ru. and laundry company works complex

Obninsk Industrial Zone Obninsk Technology Park

Resident Companies:

LTM The resident policies of Obninsk Technology Park have Company comprehensive been defined by Innovative Development Agency – solid confectionery a pharmaceutical metal solutions for fiber cement a production dosage company construction and slabs for flow-on and logistics Kaluga Region Cluster Development Center OJSC. forms machine building machin center

Obninsk, a science city located 100 km south-west of Mos- This project is implemented by the government of Kaluga Region cow, has a favorable economic and legal environment for busi- based on the government program ‘Establishment of Hi-Tech Park in ness and capital protection. Obninsk is located in the proximity the Russian Federation’. of M3 highway, Moscow to Kiev railroad route and a cargo airport. The project mission is to create an efficient and operable system, which will support and promote science intensive and innovative projects from the moment a scientific idea arises to mass production. The project for the city industrial zone kicked off in 2001. Since 2010 Obninsk Technology Park will be located in two lots with a total area a concept has been developed to set up Obninsk Industrial Park, which of 51.5 ha. together with some areas of the adjacent districts will according to the Area of expertise: biotechnologies and pharmaceuticals; city master plan have an industrial zone of 120 ha instead of 50 ha. nanotechnologies; nuclear technologies and radiological health care, IT, new technologies and materials.

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Investments №03 Innovations 2012 and Infrastructure Production Readiness Maklaki Industrial Park

Location: village of Maklaki in Duminichi District in the south-west of Kaluga Region, 120 km off Kaluga, 15 km off M3 Ukraine highway and 30 km off Moscow to Kiev railroad route.

This project is a new project to the Ministry of Resident Company: Economic Development of Kaluga Region, which is one of the founders of the industrial park. Maklaki Industrial Park is operated by Kaluga Re- gion Development Corporation. Duminishy Master Obyedinenie OJSC, a concrete plant with an annual capacity of 3.5 million t. The plant Total area — runs on mortar limestone from Kotorskoye field in Duminishy District. The company is registered in Duminichy District as Kaluga Concrete Plant 1,242.3 ha OOO

This project is a property of Kaluga Con- crete Plant OOO and Master-Resurs OOO. Ownership forms: government, municipal and private (use for an unlimited period of time or lease or ownership). «Kaluga Concrete Plant»

Detchino Industrial Zone

Location: near the town of Detchino, along M3 Ukraine highway, 140 km off Moscow. Resident Companies:

sales and maintenance sales and maintenance of agricultural of agricultural The project is initiated by the Ministry machinery machinery of Economic Development of Kaluga Region.

development and sales warranty repairs of livestock management f agricultural systems, soft- and hardware machinery

Total area —

fiber metal 209 ha concrete structures Allocated to investors — slabs Gals+ INDUSTRIAL CONSTRUCTION 109 ha a multifunctional COMPANY ndustrial complex brick plant

A project for the establishment of Detchino Agricultural Technology Center, one of its kind in Russia, is implemented in Detchino Industrial Park. The center currently has a 40 ha lot where 5 large agricultural companies from Europe operate. The government of Kaluga Region plays an im- portant part in the establishment of the center. The government offers consulting services and administrative support as provided for in the region’s investment support system.

Freedom of choice is a key to cooperation between investors and the government of Kaluga Region. Obviously, we are striving to work and achieve the set goals independently, however, the support of the region’s government and confidence it gives help us develop very effectively

Yuri Rusanov, Director General of GRIMME-RUS OOO

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Investments №03 Innovations Production Readiness 2012 and Infrastructure Lemminkainen I-Park Industrial Park

Location: the town of Vorotynsk in Kaluga Region, 180 km off Moscow, 20 km off Kaluga and 2 km off the Vorotynsk railroad station.

Total area —

750 ha Like government-owned industrial parks, this Leased lots — private industrial park of Lemminkainen offers an easy and simple manner for investors to en- 616 ha ter the Russian market. The industrial park has Owned lots — land lots with the required infrastructure. 134 ha

Lemminkainen offers land lots and performs on the customer’s behalf all actions needed to im- plement project on a turn-key basis. The industrial park can become home to about 20 production facilities and Resident Company: logistics centers. Rani Plast occupies an area The plant of Rani Plast in Kaluga will be the largest in Europe. Rani Plast and of 2.3 ha Lemminkainen have already successfully packaging polyethylene implemented several projects in Finland. film

High Potential Development Areas

The 289 ha land lot in located in the immediate prox- The industrial park is located in the south-east of imity to the town of Ludinovo in the south-west Kaluga Region, 90 km off Kaluga, 355 km off of Kaluga Region. Distance to Moscow: 329 Moscow, 51 km off M3 Ukraine highway and km, to Kaluga: 177 km and to : 15 km off P92 Kaluga-Orel highway. The 73 km. nearest railroad station is located at MOSCOW a distance of 4 km.

М101

KALUGA

Total area — М3 Total area — 289 ha 21 ha Available lots — Available lots

Kozelsk 289 ha Lyudinovo 21 ha

Industrial Park KIEV in Lyudinovo Sosensky District Industrial Park

The project is the property of Kaluga Region. The land lot has a cargo rail- The industrial park is set up in the town of Sosensky in Kozelsk Dis- road station connected to the Bryansk-Vyazma railroad route. The land trict upon the initiative of the government of Kaluga Region. The lot is located 60 km off А101 Moscow--Roslavl federal project is implemented by Kaluga Region Development Corporation. highway and 30 km off Moscow-Kiev federal highway. A road from Ludi- Kozelsk District has the required background for its industrial park novo to runs along the land lot, which connects Bryansk-Lyudi- to specialize in high-tech production facilities (tool engineering, bio- novo-Kirov road, Moscow-Maloyaroslavets-Roslavl federal highway and technologies). M3 Ukraine highway. Lyudinovo has two category IV railroad stations: Lyudinovo I and Lyudinovo II.

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Investments №03 Innovations 2012 and Infrastructure Events

th International Guitar World Musical 15 Festival

Held in Kaluga, the 15th International Guitar World Musical Festival was attended by over 100 musicians, including Dominique Piazzolla, Dominic Miller, legendary King Crimson and many other musicians playing all kinds of guitar music. Juan Manuel Canisarez, who also attended the festival, said he had learnt about the festival a couple of years earlier through he had never been to Kaluga or any other Russian city before. ‘The Guitar World is the Europe’s largest festival of guitar music. It has been my dream to visit it for a couple of years now. I am very grateful to Oleg Akim for his invitation to take part in this festival’. Mikhail Shvydkoi, Representative of the President of the Russian Federation for International Cultural Cooperation, said that the Guitar World is the largest and one of the most prestigious guitar music forums in Europe. The festival is well known for the high performance level of its participants and a fantastic atmosphere. The first Guitar World Festival was held in 1997. By now the festival has received both an international status and international recognition. In previous years the festival in Kaluga was attended by Al di Meola (USA), Vicente Amigo and Paco de Lucia (Spain), Francis Goya (Belgium), John Maclaughlin (UK), Tommy Emmanuel (Australia), Lоs Angeles Guitar Quartet. Leo Brouwer, the world’s most famous composer of guitar music and conductor, honorary UNESCO member, celebrated his 70th birthday in Kaluga. The agenda of the 15th International Guitar World Musical Festival included both concerts and workshops given by Russian and foreign guitar players. For more details, go to: www.guitarworld-kaluga.ru

Corporate + 7 (499) 241-75-72 [email protected] translation + 7 (499) 241-55-37 www.mistral-center.ru services + 7 (499) 241-59-82

Russia, Kaluga, Truda st., 33 e-mail: [email protected] With the support of the Ministry of Economic Development tel.: 7 (4842) 76-27-00 [email protected] Prepared by Kaluga News Agency fax: +7 (4842) 76-27-01 www.arrko.ru