1 2014 ANNUAL EDITION REGION IN NUMBERS

50 BILLION rubles in investments received over 9 months of 2014

580 BILLION 370 BILLION 4.7% 128.4% rubles invested in the region’s rubles industrial production growth economy from 2006 to October 2014 – value of products shipped growth over 9 months of mineral (estimate) over 9 months of 2014 of 2014 production 162.7% х 6 times 114.6% 122.1% growth of metallurgical growth growth growth of production production and production of industrial production of chemical of food products including of metal products since 2006 production beverages and tobacco

14 growth of production of food products including beverages and tobacco 149 89 25000 76 investment projects projects in industrial parks; jobs new economy being implemented 1 project – in industrial created companies operating in the region production special economic zone since 2006 in the region 21 2685 300 40% investment agreements industrial enterprises large and medium of GRP generated executed operating industrial enterprises by the region’s industrial in 2014 in Kaluga Region in Kaluga Region complex

2 2014 ANNUAL EDITION

10 industrial parks Lyudinovo IP SEZ ready to accommodate production facilities

6,322.4 hectares 2,929.8 hectares total area area of industrial sites of industrial sites available for development

30 companies in the automotive cluster, one of the top three automotive centers in

> 50 70% 10.07.2014 1 BILLION 42 companies in the share of innovative creation of the Agro-Industrial rubles allocated from robotized pharmaceutical companies Complex Development the regional budget for units commissioned cluster in the pharmaceutical Agency to supervise the commissioning of 100 before cluster implementation of major robotized dairy farms December 2014 agricultural projects

31.1 BILLION rubles transferred to the consolidated budget of tax and non-tax revenues over 9 months of 2014

39.3 MILLION 60% rubles allocated for support of small and medium of the regional budget is spent businesses over 9 months of 2014 on the social sphere

3 2014 ANNUAL EDITION

Alexei Laptev, First Deputy Governor of Kaluga Region: “THE REGION’S ECONOMIC STABILITY CONFIRMS THE EFFICIENCY OF OUR STRATEGY”

lexei Petrovich, how was the socio-economic devel- А opment strategy of Kaluga Region adjusted with the THE SOCIO-ECONOMIC DEVELOPMENT adoption of the import substitution policy and food STRATEGY OF KALUGA REGION WAS security strategy? APPROVED IN 2009. ISSUES OF IMPORT — In 2006, when we were just starting to develop our strat- egy, we based its key priorities on a number of key principles SUBSTITUTION AND FOOD SAFETY WERE of long-term regional development. Among the identified stra- TAKEN INTO ACCOUNT IN IT FROM THE tegic objectives were sustainable and balanced development VERY START of territories and social security. This was to be achieved by balancing state and local interests and by relying only on our own resources. In other words, the strategy dealt with issues of import substitution and food safety from the very beginning. facturing, to support of entrepreneurs and strengthening of At the same time, we defined parameters of “preferred in- the region’s own financial capabilities. vestment projects”. They are high added value to ensure growth The region confidently endured through the 2008-2009 crisis, of tax receipts, high workforce productivity to stimulate sala- and its social and economic stability confirmed the correctness ry growth, high level of local resource use, export attractive- of our development model. Of course, certain tactical adjust- ness and low environmental impact. Investors meeting these ments may be required to compensate the new restrictions. requirements always got and always will get our maximum This is not a problem for us – rather an incentive to strengthen support. Having learned to properly balance the interests of positions of local manufacturers. This primarily implies agricul- investors and priorities of regional development, we managed tural businesses. Apart from the fact that virtually all segments to become one of the most investment-attractive regions of of the agricultural sector have remarkable growth potential, Russia. This year alone, investors launched 14 new production state support provided in the region will build a strong founda- facilities in Kaluga Region. tion for creation of new and development of existing high tech Strategy-2030 assigns great importance to diversification of agricultural enterprises. Continuous state support has greatly the regional economy, development of agriculture and manu- contributed to the improvement of the investment climate in

4 2014 ANNUAL EDITION

the agricultural sector. As of today, Kaluga Region’s agricul- and this fully corresponds with the federal goals. We work to ture has already attracted 31 billion rubles in investments. improve the life of each resident of our region. These are not Nine new production facilities were launched this year alone. just fine words. The regional Strategy includes three stages. The first one was completed in 2013 and focused on techno- — What steps will be taken to ensure balanced and sus- logical modernization of selected segments and overcoming tainable development of Kaluga Region? of infrastructural limitations. What was achieved? — To ensure consistent development we need not only ad- Kaluga Region became a recognized region. We enhanced ditional financial resources, but also high flexibility in the our investment and financial potential. The share of social use of instruments mitigating negative consequences for our expenses in our budget is 60%. That means that our concept companies. That is why we actively collaborate with federal – “the individual as the focus of investments” – is imple- ministries – to participate in various programs and receive mented in practice. We are meeting targets of housing avail- stimulating transfers from the federal budget. We have al- ability and salary growth. For several years in a row, we are ready adjusted the priorities of state support provided by following Moscow and Moscow Region in third place by av- partial subsidizing of costs to make sure that they have the erage monthly salary. This is not the only positive result. Our highest efficiency for the region’s economy. Our main objec- greatest achievement is that our budget is unsubsidized. Not tive is to secure positions of already commissioned produc- long ago the implementation of any of our initiatives fully tion facilities, to develop our own industry, to support inno- vations, small and medium businesses. We are making high stakes on agriculture and development of the food processing industry. We are not aiming to create as many companies as possible, but striving for a new level WE WILL REDUCE THE TAX FOR of quality. The project for the creation of 100 robotized farms has been quite a success. Thirty robotized units were have al- SCIENTIFIC AND INDUSTRIAL ready been installed from the beginning of the year. All farms SMALL BUSINESSES CREATED got subsidies for loan interest, funds to acquire equipment, AFTER JANUARY 1, 2015 AND OPTING build roads and connect to power and gas networks. Similar FOR THE SIMPLIFIED TAXATION measures of support will be provided also in 2015. It is important that the region is developing new segments SCHEME FROM 15 TO 5%. THE TAX as well. For example, this year a large salmon farm and mush- FOR COMPANIES INVOLVED IN room growing complex were commissioned in the region; EDUCATION, HEALTHCARE OR and we are actively supporting Green Line that is restoring orchards in Baryatino and Lyudinovo Districts. SOCIAL SERVICES WILL ALSO BE In 2015, we are expecting a significant breakthrough in the REDUCED TO 5% pharmaceutical field. Global pharmaceutical leaders already working in the region – Berlin Pharma and Chemopharm – will be joined by AstraZeneca Industries and Novo Nordisk. The machine building complex will also get a considerable depended on the federal budget. Now we are a self-sufficient incentive for growth. After the introduction of anti-Russian region. We have eliminated almost all administrative barriers. sanctions, the federal government has been developing a This year’s Doing Business rating put us in first place by ease complex of measures to replace imported defense products. of property registration in Russia. Creation of the Lyudinovo Technological independence is an issue of national security. SEZ will stimulate the development of southern territories It is still too early to go into specifics, but the defense indus- as well. This year, construction of the biggest greenhouse try will get additional workloads in the nearest future. Some complex in Russia was started there and an agreement for companies have been working in that direction for quite a the construction of a woodworking plant was signed with a while – Kaluga Engines, Tekhnologiya in , Kaluga Tur- Turkish company. Another achievement is the formation of bine Plant. Most of the region’s defense companies have sig- nificantly updated their production facilities and managed a highly profitable automotive segment. This year, Kaluga’s to obtain federal financing for further development. Mod- automotive cluster companies that employee 12,000 of local ernizing companies get additional support in Kaluga Region residents manufactured over a million cars. Major logistics through a system of tax benefits. In the next few years, we projects are in progress. Industrial parks Rosva and Vorsi- intend to expand the range of privileges provided to compa- no are building Freight Village format multimodal logistics nies that think about development. complexes. The key logistics project is Freight Village Vorsi- no, which is already offering transportation, forwarding and — How well is the regional development strategy har- other services with access to three types of transport within monized with the federal one? a single multimodal terminal – motor, air and rail. In 2015, — The principal goal of the Concept of Socio-Economical Kaluga international airport will begin operation. Development of Russia up to 2020 is to create conditions for We are now implementing the second stage of the Develop- the realization of human potential and to secure Russia’s po- ment Strategy, which will extend to 2019. Our goals – expan- sitions as a global economic leader. The principal priority of sion of innovative development, improvement of life quality our Strategy is the individual as the focus of investments, and attraction of new residents to our region.

5 2014 ANNUAL EDITION KALUGA REGION IN RATINGS* 1 PLACE IN CFD AND RUSSIA 1 PLACE IN CFD AND 8 PLACE 2 PLACE IN CFD AND 18 IN by volume of shipped manufactured products per capita IN RUSSIA RUSSIA by volume of industrial output per capital by volume of construction works per capita

3 PLACE IN CFD AND 23 IN 3 PLACE IN CFD AND 30 IN 3 PLACE IN CFD AND 15 IN RUSSIA RUSSIA RUSSIA by volume of capital investments per capita by average monthly salary by rate of commissioning of residential buildings

*Source: Rosstat data for January-September 2014

1 PLACE 1 PLACE 2 PLACE in the National Rating of Regional by ease of registration of property held by Anatoly Artamonov in the rating Investment Climates (ASI, WCIOM, The in Russia (Doing Business). The same of governor efficiency for November 2014 Boston Consulting Group). The top group research found Kaluga Region to be the (Civil Society Development Foundation). includes Ulyanovsk Region, Krasnoyarsk most attractive Russian region by ease of First place held by Dmitry Kobylkin, Territory, Tatarstan Republic and Kostroma doing business. governor of Yamal-Nenets Autonomous Region. District

1 PLACE 8.5 POINTS OUT OF 10 BB RATING given to Kaluga in the category in the rating of social and political Fitch Ratings confirmed the region’s long- “Event Tourism Capital” at the stability of Russian regions (St. term credit rating at BB with a forecast of 2nd Russian competition of Petersburg Policy Foundation). One stability and its short-term foreign currency tourism projects (Russian Open of the best results among all Russian rating as B. The agency also confirmed the Event Expo-2014) constituent subjects. region’s long-term national rating as AA-(rus) with a forecast of stability.

Kaluga Region included in the list of In 2014, each RUR 1 invested in the According to the FMS, Kaluga regions with the most efficient executive development of the economy brought Region is one of the leaders in systems and received an award of RUR 157 RUR 1.2 in taxes to the consolidated implementation of resettlement million from the Russian Government. The budget. 15.4% of tax revenues (RUR 5,741 programs among 44 Russian maximum award was RUR 216 million and million) come from companies of the new constituent subjects. Since 2007, was granted to Tatarstan. economy. In 2007, their share was 0.8%. 23,732 nationals relocated to the region.

6 LAUNCHES 2014

“I am certain that the launch of these large scale high tech projects will contribute to the strengthening of the region’s economic potential, to the creation of new modern jobs, to the resolution of an entire range of social issues. Such efficient work with investors, consistent efforts targeted at the improvement of the business climate is an excellent example for the country’s other regions”. Vladimir PUTIN, RF President (from the welcome address dedicated to the opening of the Lafarge Group cement plant) 2014 ANNUAL EDITION MAY2014 19.05 Lafarge Cement JSC

The official opening of the Lafarge Group cement plant took place in Ferzikovo. The plant built by the French company together with its Russian co-shareholder – the European Bank for Reconstruction and Development – is the Group’s first project of this kind in Russia. Andre Martin, President of Lafarge Group, noted that the investment in the plant was the biggest Lafarge investment in Russia. The plant’s design capacity is 2 million tons of cement per year. The product portfolio includes CEM I 42.5 B and CEM I 42.5 H. In 2015, the plant plans to start production of a new type of cement – CEM II 42.5 with additives. The amount invested in the project was EUR 500 million. The plant has 550 job positions. Cement will be produced using the “dry” method, which requires 2.5 times less energy than traditional technologies. The plant is also designed to work with alternative fuel sources. By 2020, the plant aims to bring the share of alternative fuel to 45%. This will allow the company to make a considerable contribution to the preservation of non-renewable natural resources and improvement of the region’s ecology.

“I congratulate you not only on the opening of this remarkable plant, but on an event that is a vivid example of successful cooperation between Russia and France. Over a brief period, Kaluga Region launched a modern new enterprise that was built using innovative green technologies. And the project is also advanced from the point of view of energy efficiency”. Dmitry MEDVEDEV, Chairman of the Russian Government

8 2014 ANNUAL EDITION

19.05 Berlin-Pharma new Berlin-Pharma pharmaceutical plant opened in Grabtsevo industrial park. The company is the manufacturing of Berlin-Chemie AG in Russia and part of the Menarini group. The total amount invested in the project exceeded EUR 40 million. The 10,000 sq.m plant is already producing nearly 3 million packages of medications per month. When the plant reaches design capacity, its output will increase to 50 million packages per year. Medications manufactured by the plant are used in diabetology. gastroenterology, cardiology and urology. Berlin-Pharma’s plans also include construction of a distribution and logistics center in Grabtsevo that will facilitate delivery of pharmaceuticals throughout Russia.

“The region’s pharmaceutical cluster “This project is a vivid example includes nearly 50 of development of international companies. Eleven major cooperation: a French investor production facilities are implementing a project on currently being built, Kaluga soil with the use of and some of them are Chinese technologies and already operating. By 2020, equipment. Kaluga Region has nearly 15% of our region’s formed a unique team, and you total industrial output were able to achieve tremendous will be contributed by success. There are dozens of pharmaceutical companies. new companies operating in the And by that time we intend region, and this is vivid evidence to secure over 20% of of the fact that the situation in a Russia’s pharmaceutical region can change considerably market”. within the lifespan of a single generation”. Anatoly Artamonov, Governor Igor SHUVALOV, of Kaluga Region First Deputy Chairman of the Russian Government

9 2014 ANNUAL EDITION MAY2014 29.05 Mercator Kaluga LLC new Mercator Kaluga LLC plant opened in Kaluga South industrial park. The plant is a joint project between European concern BUCHER–Guyer AG and its Italian affiliate Giletta S.p.a. that specializes in manufacturing of municipal engineering equipment for maintenance of motorways and city streets. The total amount invested in the project is RUR 500 million. The number of new jobs created at the plant is nearly 100. The design capacity is 500 units. In 2015, the plant intends to manufacture 1000 vehicles. All products will be supplied to the Russian market. Among them: vacuum street sweepers, combined machines, garbage trucks, compact sidewalk cleaners… The plant uses the latest generation of technologies developed by European companies specializing in municipal engineering.

29.05 Mercator Holding LLC and the “I must admit that we Urals Plant of Deicing Agents found highly qualified LLC signed an agreement on specialists in Kaluga cooperation. The parties plan to Region, who contributed manufacture special machines to the implementation of adapted for distribution of new our project. Out products deicing agents. They will reduce the amount of agents used to are used in 50 countries. clean the roads in wintertime. The Kaluga plant fully This, in turn, will reduce soil meets international “We would like to thank the regional salt stress and allow municipal quality standards. By administration for its support during the companies to save considerable establishing a presence construction of our plant. In turn, we will funds on road maintenance. here, we are localizing are be happy to contribute to the success of production in Russia”. the region and will make sure that our Guido Giletta, machines are of high quality and affordable President, for the region”. Giletta Stanislav NIKOLAYEV, President, Mercator Holding

10 2014 ANNUAL EDITION JUNE2014 5.06 Continental Automotive Systems Rus LLC Continental Automotive Systems RUS LLC demand of the entire Russian market. The plant began operation at the Kaluga South innovative 32-bit Easy-U engine control industrial park. Continental invested EUR unit, which will also be manufactured at 24 million in its newest production facility. the new facility, was designed specifically The plant will manufacture up to 1 million for Russian consumers. The plant’s engine control units, 500,000 fuel modules production lines provide maximum and 500,000 injector rail systems each flexibility and can be quickly adapted to year. Commissioning of the Continental changes in clients’ needs. plant fully covers the fuel module

“We have faith in the Russian market and will keep increasing the level of localization. We are currently considering several ambitious projects to expand production in Russia”. Christian KOGL, President of the Power Units Division, Continental AG

ABOUT THE COMPANY “The new plant expanded our The Continental concern currently operates production capacity in Russia three production facilities in Kaluga allowing us to supply locally Region. The first is tire-manufacturing manufactured products to plant Continental Kaluga LLC that opened clients in Russia on a long-term in October 2013. The second is Continental basis. Opening of Continental Automotive Systems RUS LLC that Automotive Systems RUS is a manufactures electronic components and strategic step on the path of our fuel injection and supply system elements. positioning as the world’s leading And the third is ContiTech, a plant supplier of electronics on the manufacturing air conditioning and power dynamic Russian automotive steering systems. market”. Jose AVILA, Board Member, Continental AG

11 2014 ANNUAL EDITION JUNE2014 6.06 Mahle Rus LLC MAHLE Aftermarket, part of the MAHLE concern (major supplier of automotive components and spare parts) opened a logistics center at Vorsino industrial park. The total amount invested in the project is RUR 600 million. The center was built near Obninsk, on the Kiev Highway, 75 km from Moscow. It includes the East European sales branch of MAHLE Aftermarket, a technical support service and training facilities. Creation of a logistics and distribution center in Russia will bring MAHLE closer to consumers in Russia and Belarus. Before the center in Kaluga Region opened, MAHLE Aftermarket supplied products from Germany. Its range of products includes filters, heat regulators, turbochargers and engine components for passenger vehicles of all leading brands (from Alfa Romeo to Skoda and VW), as well as for commercial vehicles, including those manufactured by MAN, Mercedes-Benz, Scania and Volvo.

“We are interested in localization of our reach a higher level of service. Our clients will no production, so the new center includes longer need to arrange customs clearance when production facilities as well. With our newly purchasing our products, delivery will be faster formed team that will handle sales, logistics and and clients will be offered an entire range of technical support from the Russian logistics goods available on the spot”. center, we will have the opportunity to satisfy Arnd FRANZ, Board Member and Executive the growing demand for MAHLE products and Vice President, Mahle 15.06 KALUZHSKOYE SP LLC new cattle breeding complex began operation in Peremyshl District. With an area of 20 hectares, the Kaluzhskoye SP LLC complex is already maintaining 1000 heads of Holstein cattle. Investments in the construction of the facility were RUR 275 million. The complex created 110 jobs. The project assumes the creation of a technological chain for growing forage and grain, cattle breeding, primary milk processing and cattle improvement. The complex applies advanced technologies of zero grazing cattle maintenance. Forage is distributed in the form of balanced mixtures through a system of mixers. The complex uses the Carousel milking machine manufactured by German company Geo Farm Technology.

ABOUT THE COMPANY

The complex has already demonstrated its efficiency. In just four months of 2014, milk production exceeded the entire milk output for the previous year. There are currently no unprofitable high- mechanization farms left in Kaluga Region. All farms are profitable.

12 2014 ANNUAL EDITION JULY2014 1.07 ContiTech Plant Branch of Continental Kaluga LLC

Continental opens its third plant at Kaluga Region and the first Russian facility of its ContiTech AG division. The ContiTech facility in Kaluga will manufacture components for automobile air conditioning and power steering systems. The plant’s products will be targeted at the Russian market. The production capacity of the plant is 700,000 “For our divisions specializing in air conditioning systems, product units per year, and from 2015 it is estimated power steering and chassis control systems, the new plant to exceed 1.5 million. ContiTech’s first employees will become a bearing point in a direction that is of strategic already completed training in Germany. By 2015, the facility’s staff will reach 160 people. Continental importance to the concern. In targeting the Russian market, invested EUR 17 million in the construction of its we will of course take the specifics of the country into new plant, which was built on the territory of Rosva account. Thus, ContiTech be adapted to Russia’s climate. industrial park, next to the Continental Kaluga LLC Continental is currently a partner of almost all automotive tire plant. Another Continental plant – Continental assembly plants in Russia and CIS, including those that are Automotive Systems RUS LLC, which manufactures electronic components and components for fuel part of the Kaluga automotive cluster”. supply and injection systems – is located at Kaluga Uve MARBATZ, South industrial park. Director, ContiTech Kaluga

MagistralEnergo We are faster!

POWER SUPPLY IT-INFRASTRUCTURE

Design and manufacturing Data storage infrastructure of reliable modern switchgear Structured cable system Electrical works Installation

VIDEO SURVEILLANCE LIGHTING MANAGEMENT

Design and construction of surveillance Selection of suitable equipment, assembly systems and installation Calculation of energy efficiency

We are a principal partner of: Our clients:

13 2014 ANNUAL EDITION JULY2014 18.07 Farm in Podborki

“These are the golden years “The importance of the for agriculture. Having project goes beyond the chosen the path of import company and Kaluga substitution, the state will Region. We plan to create provide support to local Construction of the region’s largest cattle-breeding a learning center at manufacturers. Agriculture complex is complete. The project for the complex in the complex, through the village of Podborki, Kozelsk District, was initiated which it will share its will get considerable funds by Duminichi Dairy Plant JSC that joined forces with for development. There is Rosagroleasing JSC. Construction and acquisition of experience with other also talk about establishing cattle stock cost around RUR 2 billion. The investors plan regions”. special gas and energy rates to recover their costs within 8 years. The capacity of Lyudmila PRIDANOVA, for agricultural producers… the plant is 25,000 tons of milk per year. The complex is General Director, And this is just the intended for free-stall housing of 2,400 forage-feed cows. Rosagroleasing JSC beginning…” Rosagroleasing JSC already delivered Holstein breeding stock. The productivity of this breed of cows is twice the Anatoly ARTAMONOV, regional average. The average daily milk yield per cow is Governor 29.8 liters, and of the entire milking herd – 19.8 tons. The of Kaluga Region farm has a biogas power station that produces energy by recycling.

20.07 WOLF SYSTEM LLC

Austrian company Wolf System routinely commissioned a plant for manufacturing of construction elements at the Detchino agricultural technologies center. Construction included two stages. The first stage involved the construction of a shop for manufacturing of components for quick- assembly agricultural buildings (cowsheds, pigsties, aviaries, stables) and frame-panel housing. The second state – construction of auxiliary shops. The amount invested in the project was $3 million. Wolf System currently employs 34 specialists and will eventually create 50 jobs.

14 2014 ANNUAL EDITION SEPTEMBER2014 2.09 VERNIY PUT’ LLC

tons of substrate and 300 tons of oyster mushrooms. The project was launched in 2008. Over a six-year period, the company built and reconstructed over 4,000 square meters of production facilities. 100 new jobs were created. The complex is unique “We are prepared to create conditions and does not have any analogues in the necessary for growth of sufficient volumes of territory of the former Soviet Union. It mushrooms in Russia. We have increased our is currently capable of producing up to production capacity 12-fold. We have switched 45 tons of substrate per day, which can to a new efficient technology for substrate be used to grow up to 14 tons of oyster mushrooms. The first shipments of production that is in many ways better than Kaluga-produced substrate were sent to European technologies. I am certain that mushroom farms in Moscow, Leningrad, Russia has tremendous potential for creation of Nizhny Novgorod and Tula Regions. similar complexes. We, in turn, are prepared to Verniy Put’ LLC opened a mushroom farm Agreements were signed with Kazan and provide technological project support that will in Hvastovichy District. The event is one of Vladimir Region. The company plans to national significance, as more than 90% of produce substrates for other types of allow the consolidation of efforts targeted at mushrooms cultivated and consumed in mushrooms, as well, including some exotic development of the industry”. Russia are imported. varieties. At full capacity, output will reach Ilya VORONTSOV, The annual output of the farm is 30,000 1 ton of mushrooms per day. General Director, Verniy Put’ LLC

15 SEPTEMBER2014 4.09 OMIA URAL Ural LLC OMIA URAL LLC ground marble manufacturing plant begins operation at Vorsino Industrial Park. OMIA concern (Switzerland) has more than 100 plants in 50 countries and is a leading manufacturer of industrial minerals and major distributor of various chemical products. The concern is quite successful in Russia as well, with plants in Komi Republic, Chelyabinsk, Sverdlovsk and Regions. In Russia, the concern has its own mineral resource base (3 marble deposits in the Urals) that are sufficient to maintain it in the long term. The OMIA URAL plant in Kaluga manufactures fine ground (>5 mcm) surface finished marble powder that I used as a filler and pigment in paint and coatings and paper production, plastics and construction materials. The plant’s capacity is over 100,000 tons of finished product per year and is expected to be achieved in the middle of 2015. The plant will focus its distribution on the Central Federal District of Russia.

4.09 FREELITE JSC

Freelite JSC officially launched its ceramic granite (SF Systems Ceramics of the Future brand) production complex in Balabanovo. The capacity of the first stage of the RUR 2.3 billion plant is 5 million sq.m per year. The plant created more than 300 new jobs. Commissioning of the second stage is planned for 2015. The company will operate modern equipment supplied by Italian manufacturers SACMI, Ancora and CMF. Freelite JSC Chairman Alexei Boldyrev expressed confidence in high demand for the company’s products in Russia.

OCTOBER2014 22.10 REMPUTMASH-AGRO LLC

A cattle-breeding complex for 2400 cows began operation in Peremyshl District. Built by Remputmash-Agro, it will produce around 18,000 tons of milk per year. 2460 Holstein bred heifers were already delivered to the complex. A computer herd management system will provide information about the condition of every animal and optimize milking and feeding processes. The complex is currently building a second dairy farm and a processing plant to produce cartoned milk and kefir with a capacity of up to 60 tons per day. Products manufactured by Peremyshl farmers will be sold through retail outlets locally and in neighboring regions. The total cost of the project exceeded RUR 3 billion, more than half of which was credited.

16 2014 ANNUAL EDITION NOVEMBER2014 27.11 Volvo Vostok JSC

official ceremony dedicated to the opening of a new Volvo and Renault truck cab plant. The Plant was built at Kaluga-South Industrial Park, next to Volvo truck and excavator production facilities. The initial design capacity of the new production facility equals 15,000 truck cabs per annum, including 10,000 for Volvo trucks, and 5,000 for Renault trucks. Project investments — EUR 90 million. Staff – 350 people. The manufacturing plant includes three main areas – a warehouse, a cab welding zone, where the cabs are welded of forged components, and the coating zone. The new plant was designed with consideration all Volvo Production System requirements. The production facility staff attended all necessary training sessions and its qualifications are fully in line with Volvo Group requirements to truck cab production personnel. Manufactured cabs are delivered to the final assembly line of the Kaluga Volvo Group plant. This ensures tight cooperation between two Volvo Group production facilities.

“I am absolutely positive that the presence of company’s production facilities in Russia plays the decisive role in holding the leader’s position in this market. Today we open a new page in the history of Volvo Group presence in Russia. The new truck cab welding and coating “We have everything we plant – is another large need to attain the objectives ABOUT THE COMPANY step in increasing the set for our company, — degree of Volvo products’ business relations with 5 PROJECTS IN KALUGA REGION localization, which is to Kaluga Region based on Implemented by Swedish concern Volvo reach 45% by 2018. The trust, and highly qualified (Kaluga-South Industrial Park) cooperation between personnel we found in • Volvo truck production facility Volvo plants in Kaluga will Kaluga. Our localization (Volvo and Renault trucks); bring us even closer to our plans to be implemented • Volvo Truck Center Kaluga – truck customers and allow us to by 2020 provide for maintenance center; offer the products of the • Volvo customs department; construction of an axle • Volvo Construction Equipment highest quality made in production facility as well as excavator production facility; Kaluga.” a gearbox assembly plant.” • Volvo Group Cab Factory Peter ANDERSSON, Olivier Vidal, (production of cabs for Volvo and CEO, Vice President, Volvo Group Russia Renault trucks). Volvo Group, Production

17 2014 ANNUAL EDITION

EFFECTIVE BUSINESS 5 SOLUTIONS 2014

Alexei Logvinov, Deputy Manager of Sberbank of Russia JSC Kaluga Branch “We see a lot of potential for development of business in Kaluga Region. There ae currently no industries in the economy that are susceptible to credit risks; quite the opposite – the current situation in Russia and the resulting course for import substitution contributes to development of new opportunities”.

SBERBANK ANALYZES ALL FEEDBACK FROM ITS CLIENTS. TO SUPPOR AND DEVELOP BUSINESS, IN 2014 THE BANK DEVELOPED A RANGE OF NEW PRODUCTS.

CREDITING OF CONTRACTUAL PERFORMANCE, INCLUDING PERFORMANCE UNDER STATE 1 AND MUNICIPAL CONTRACTS The product is demanded by the The Kaluga Branch of Sberbank of market as it allows the companies to Russia finances 30 organizations resolve all contract implementation implementing state and municipal issues comprehensively. Sources of loan repayment include proceeds from orders. financed contracts and operational Total credit limits: revenues (repayment of interest and commissions only). The product is useful to companies that perform RUR 3.5 billion contractual works associated with real Total guarantees: estate construction, road construction, supply of equipment to state customers, etc. RUR 4 billion

18 2014 ANNUAL EDITION

GUARANTEES CREDITING TO STATE OF RESIDENTIAL AND MUNICIPAL BUILDING 2 CUSTOMERS 3 PROJECTS The volume of transactions executed 2014 was a year of changes in the residential construction market. under the federal law on state The market is developing a more positive attitude towards integrated procurement is constantly growing. residential projects that produce comprehensive habitats other than Considering the specifics of the current single buildings. Stakeholders are still the main source of financing, and economic situation, counteragents prefer this produces specific risks. The Bank’s product aims to minimize these to use bank guarantees to mitigate risks. Financing is provided up to the moment of commissioning of the their risks, and Sberbank provides project, allowing developers to complete major projects in short periods such guarantees with the greatest thus raising stakeholder trust. The Bank’s cooperation with Comfort Park convenience and accessibility. that is developing a residential project in the Pravoberezhye district of Kaluga is a good example of successful use of the product.

Branch bank guarantee portfolio In 2014, the Bank provided financing to 10 clients for the amount of > RUR 7 billion RUR 1.26 billion

SMALL BUSINESS SUPPORT. BUSINESS INVEST AND BUSINESS BUSINESS GUARANTEE LOANS DEVELOPMENT 4 CENTERS The Business Invest loan is comprehensive investment financing of small businesses 5 This year, Kaluga Region’s second business development for a term of up to 10 years. The source center opened in Obninsk. This an absolutely new of repayment is the client’s operational format of infrastructure for entrepreneurs that is revenues. The Business Invest loan allows being introduced by Sberbank throughout the country. the Bank’s clients to obtain financing A business development center is an open venue for acquisition of assets, for repairs or for all sorts of business events, training seminars, construction, or refinancing of their current consulting and information support. Services of business debts to other banks / leasing companies. development centers are available to all entrepreneurs, regardless of whether they are the Bank’s clients or not. The Business Guarantee product is an additional opportunity for small businesses to secure the performance of their For additional information, apply to Sberbank business obligations. The amount of guarantees provided without any development centers at: pledge or surety is 63 Gorkogo Str., Kaluga 46, Marx Avenue, Obninsk Tel.: 8 (4842) 716-605 Tel.: 8 (48439) 2-97-11 up to RUR 4 million 8 (4842) 716-607 8 (48439) 2-97-11

CORPORATE LOANS

RUR BLN 71.3 Всегда рядом 40% 80 BLN Of companies registered in Kaluga Region 60 41.3 12 are BLN offices 40 providing services clients of the Bank % to legal entities for the year 20 + 73 2013 2014 19 2014 ANNUAL EDITION NEW PROJECTS 2014 ⇪ ⇪ APRIL 19 MAY 26

The laying of the foundation stone of the Khotkovo LLC robotized farm in Duminichi District. The cattle-breeding complex will accommodate 240 heads and will be equipped with four robotized units and a fodder supply system. The farm’s production capacity will be 7 tons of milk per day. Commissioning is scheduled for the end of 2015. Speaking about the importance of such projects for the development of the region’s agriculture, the governor emphasized that active introduction of new technologies in agriculture will improve the competitive ability of local agricultural products and contribute to the prosperity of rural districts.

The laying of the foundation stone of the Agro-Invest LLC greenhouse complex – the first central Russian greenhouse complex for year-round vegetable production – in Lyudinovo special economic zone. The area “Our greenhouse complex under development is 237.8 hectares, will have modern high-tech and the area of warehouses will be equipment allowing it to 87 hectares. The first stage of works grow up to four harvests includes the construction of a 37 MW of vegetables per year. We power center and facility for sorting estimate that we will be able and packaging of finished products. to fully satisfy Kaluga Region’s The annual output of the complex demand for fresh vegetables will be 70,000 tons. The first harvest will be grown and delivered to retail and to oust imported tomatoes ⇪ chains in the first half of 2015. The and cucumbers in the first year amount invested in the project is of operation.” RUR 13 billion. The company will Maria YAVORSKAYA, AUGUST 1 create over 1200 jobs for residents of General Director, surrounding settlements. Agro-Invest LLC

Plitspichprom JSC produced the first batch of Alleanza interior doors. The production capacity is 118,000 door panels per year. The company also began to organize manufacturing of lumber and wood trim. The capacity of the future complex is 50,000 sq.m of products per year, most of which will be exported, which makes receipt of an FSC certificate on of the company’s primary objectives. The key project in the company’s development strategy is the construction of a particleboard plant with an annual capacity of 150,000 m3. The project also includes organization of manufacturing of laminated particleboard that is of high demand on the furniture market.

20 2014 ANNUAL EDITION PARTNERSHIP2014 28.02 01.10

The Kaluga Branch of the N.E.Bauman MSTU and Volkswagen Group Rus JSC have been cooperating closely for several years. On the 55th anniversary of the university’s branch, the car manufacturer presented the MSTU laboratory with teaching models of the 1.8TFSI combustion engine and the DSG gearbox. The new equipment will expand the universities scientific research capabilities. Students will get the opportunity to use for practical training and for their course and degree works. Within the scope of the Studies Combined with Practice (StiP) project, MSTU has decided to open a new training specialization – metalworking mechanic – specifically for the VW engine plant that is currently being built “We are hoping that AIS Automotive Interior Systems GmbH in Kaluga. Student training will be organized our partnership with opened a plant for manufacturing in cooperation with the Kaluga Mechanical MSTU will remain as of automotive components (high- Engineering Kollege and the Volkswagen fruitful, that it will pressure plastic molding) at the engine plant. Agregatny Zavod JSC facility in allow us to develop Lyudinovo District. Key clients of modern competencies AIS are Volkswagen, Mercedes- and help Kaluga’s Benz, Ford, Toyota, and Samsung. All students find their preparations of the production site for place in the modern AIS Automotive Interior Systems LLC were supervised by Volkswagen Group world and build Rus LLC. Project investments were at successful careers.” about RUR 28 million. In the future, Alexander KLAR, Director, Agregatny Zavol JSC plans to build a Volkswagen production site that will provide repair Group Rus LLC and tool production services to AIS and in Kaluga other companies.

21.10

Negotiations between the Volvo automotive concern and Kaluga Engine JSC end with the signing of an agreement on cooperation. The status of the company’s official supplier was granted after a detailed examination of the Kaluga plant’s capabilities by the Swedish concern’s experts and a comprehensive SEM audit. Kaluga Engine is the first mechanical engineering company in Kaluga whose competencies fully comply with the requirements of the major European car manufacturer. Products manufactured by the Kaluga plant will be certified in accordance with international standards. The partnership provides high potential for new orders and for the plant’s entry to the automotive market in the capacity of an automotive parts supplier. At the end of 2014, test samples of Kaluga Engine’s products will be supplied to the assembly lines of Volvo’s Kaluga plant.

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Natalya Vysokolyan, Director, KalugaAgroPromProyekt JSC “WE HAVE TREMENDOUS EXPERIENCE, AND WE CONTINUOUSLY EXPAND OUR COMPETENCES”

— KalugaAgroPromProyekt is one of the most respected design entire range is requested by the customer, of course. Experience companies in the region. How long has the company been working shows that this approach considerably reduced project costs and on the market and what are its main functions today? ensures reliable quality control. Not many of our competitors — This year our design institute turned 50. Most of this time, use the “one stop” approach. Our focus on customer needs, our KalugaAgroPromProyekt was involved primarily in agricultural professionalism and responsibility, and, most importantly, our ability design, as is clearly reflected in its very name. We have tremendous to achieve the set targets with optimal costs secure the efficiency of experience, and we continuously expand our competences. Today, our operation. we successfully design plants, production complexes, residential — How successful was this year for you? Has anything changed buildings, shops and shopping centers, kindergartens, schools, in view of recent political and economic developments? administrative buildings of all sorts and, of course, all types of — Our sphere of activities, as well as construction, are the networks. Our specialists conduct geodetic and geological surveying, least dependent on international political events. We are much land surveying, and handle ecological issues. Our team consists of more significantly affected by the economic situation. To this specialists that are highly qualified in their respective fields. day, we have not registered any drop of volumes. I hope it will not — There are quite a few design companies currently happen, because we work in Russia and for Russians, so sanctions operating on the regional market. What is your attitude have not affected us. Moreover, 2014 was rather successful for towards competitors and competition in general? What are the KalugaAgroPromProyekt: we signed a number of interesting new competitive advantages of KalugaAgroPromProyekt? contracts. We are participating in strategic regional projects: — No doubt, the competition is very high, but evaluation criteria construction of a health center and the Freelite ceramic tile plant in are high as well. Reputation, experience and qualification are Balabanovo, Solnechniy residential district and precision machining very important. Tenders are organized in such a way that a lot of plant in Azarovskaya street in Kaluga, 5-storey building in Tovarkovo significance is assigned not only to the price, but also to quality. Our and water intake facility in Yaglovo. institute provides the full range of design services – from surveys — One of the projects most anticipated by Kaluga’s to pre-project consulting and through to inspection passing, if that residents is the reconstruction of the airport in Grabtsevo.

22 2014 ANNUAL EDITION

KALUGA INTERNATIONAL AIRPORT

AIRPORT DEVELOPMENT COMPLETED KEY KALUGA INTERNATIONAL STAGES: WORKS: CHARACTERISTICS: AIRPOT PASSANGER FLOW:

• Takeoff and landing operations • 2010 – decision made on the • Airport complex area – per year: • Airfield reconstruction; 200 hectares; reconstruction of the airport, creation of Kaluga International • Reconstruction of airport • Airfield class – “B” according 1 220 – in 2014 Airport JSC; infrastructure; to airfield operation suitability standards and “4C” according 2 229 – by 2020 • 2013 – beginning of • Organization of a border to ICAO; 4 235 – by 2030 reconstruction of the airfield and checkpoint; • Status – international; airport infrastructure; • Airport passenger capacity – • Installation of special aviation • Runway size – 2200 x 45 m; • 2014 – completion of 100 pass./hour machinery and equipment; • Taxi ways – 2; reconstruction of the airfield and • Forecasted passenger flow airport infrastructure; • Training and certification of • Takeoff weight of accepted aircrafts – class 2; (passengers per year): • 19.12.2014 – performance of aviation personnel; • Complex suitable for A-319, technical flight; 250 000 – by 2020 • Certification of the airport Boeing-737 aircrafts and their • 2015 – commissioning. operator. analogues (64 tons). 500 000 – by 2030

KalugaAgroPromProyekt is one of the few local companies that are involved in the project. What are the institute’s objectives? — First of all, I would like to thank the regional administration for having confidence in us. The fact that “DESIGNING IS NOT JUST KalugaAgroPromProyekt is participating in the international airport reconstruction project is, on the hand, recognition of MEETING NORMS AND our team’s professionalism, and, on the other – a high-profile STANDARDS; IT IS A CREATIVE assignment for us. We fully designed the project for repairing the main building and extension, prepared designs of all PROCESS THAT FULLY facades and interiors. Our specialists are currently working on CONSUMES YOU. THAT IS WHY the airport’s engineering systems, repairing the small aircraft OUR TEAM IS PREPARED TO shelter hangar and the main emergency station. — What projects would you like to participate in? Does WORK ON ANY PROJECT — FROM your team have a dream project or a challenge in mind? THE SIMPLEST TO THE MOST — It’s hard to tell. My dreams seem to be more hands-on. I would really like to create something useful, something that is AMBITIOUS ONE.” important not only for my team and me, but for all residents of Kaluga. As for dream projects… You know, I get a lot of joy from the projects that we already implemented. It is a great pleasure to manage a company that creates things. When you are driving somewhere and you see your own projects, you realize that you are doing something useful for your region every day.

23 2014 ANNUAL EDITION AGREEMENTS2014

Kaluga Region’s Vorsino and Rosva investments of approximately RUR 12.02 Industrial Parks. The project will help 450 million. The new company plans redistribute cargo flows coming to import a high-tech automated through the Moscow transport line for manufacturing of fuel tanks, hub, contribute to the creation of a which is part of Cellino S.r.l. know how. modern transit hub in the West-East The parties are currently negotiating transport corridor and further raise the Cellino-KADVI industrial cooperation in investment attractiveness of Kaluga component stamping. Region. 23.04 04.04 Kaluga Region and Bank VTB JSC signed Direct Investments Fund General an agreement on cooperation. On Director Kirill Dmitriev and Kaluga behalf of the region, the document Region’s Governor Anatoly Artamonov was signed by Governor Anatoly signed an agreement on cooperation Artamonov, and VTB was represented between the regional government by Board Member Valery Lukyanenko. and the direct investments fund. The agreement defined the principles The document covers the provision for coordination of the parties’ of mutual consulting, information efforts in resolving issues of regional and legal services associated with development. This primarily implies the implementation of investment the modernization of industrial projects. The region will also receive On a visit to Minsk, Governor Anatoly facilities that require considerable DIF’s support in recruitment of Artamonov and Prime Minister of capital investments, use of the bank’s international investors. Kirill Dmitriev the Republic of Belarus Mikhail capabilities to promote export oriented emphasized the fact that the volume Myasnikov signed an agreement on companies. VTB also intends to acts of foreign investments in Kaluga trade, economic, scientific, technical as a partner in the implementation of Region increased by 40 times in 10 and cultural cooperation between social projects. recent years, which is eight times the regional government and the greater than the national average. government of the Republic of Belarus. The document provides for the expansion of collaboration in the 22.05 fields of industrial, scientific, and 31.03 technical cooperation, trade, small and medium business development. Some of the directions of mutual interest are investment activities and introduction of modern technologies, science, education, healthcare, sports, culture and tourism.

At the St. Petersburg International 15.04 Economic Forum, RF Minister of Trade Vneshekonombank and Freight Italian company Cellino S.r.l. and Kaluga Denis Manturov and Kaluga Region’s Village Kaluga North LLC signed a Engine JSC signed an agreement on Governor Anatoly Artamonov signed loan agreement for RUR 3.7 billion. the organization of manufacturing of an agreement on industrial and trade The funds will finance the project for automotive components at the KADVI cooperation between the Ministry of the creation of the Freight Village facility. The investment project will Trade and the regional government. transport and logistics complex in be implemented over 2-3 years with The document regulates the parties’

24 2014 ANNUAL EDITION

cooperation in the elaboration and agreement covers the introduction implementation of an industrial policy and support of 1C products at Kaluga’s 20.09 and trade activities targeted at the companies, medical and educational development of multi-format trade organizations. The technical support Kaluga Region’s government and and support of small and medium center is already functioning and Miratorg agro-industrial holding trade entrepreneurship in Kaluga accepting calls from all over Russia. company signed an agreement on Region. Kaluga Region is the first region with the creation of a number of cattle- a 1C center. Apart from technical breeding complexes. The document support, plans include development of was signed by Governor Anatoly new national IT-products, which is an Artamonov and Miratorg Vice- 16.06 important endeavor within the scope President Mikhail Skvortsov. The of the import substitution policy. partners plan to build eight farms to accommodate 32,000 heads of Aberdeen Angus breeding stock by 2018. For this purpose, the region will 01.09 allocate 40,000 hectares of land for Andrey Tsarkov, Director of the agricultural use and create a support N.E.Bauman MSTU Kaluga Branch, infrastructure with 300 new jobs. The and Jean Christophe Marshal, General project will cost RUR 6 billion. Director of PCMA Rus LLC, signed an agreement on long-term cooperation. The partners’ objective is to raise the Nonprofit partnership Kaluga professional level of students, improve Pharmaceutical Cluster and Kazan 21.10 educational programs and expand the (Privolzhsky) Federal University signed university’s facilities. The agreement an agreement on cooperation in three with PCMA Rus covers the organization priority directions: development of of internships for students and educational programs, joint research their introduction to engineering and development, and assistance to the development of specialized solutions and safety systems used small and medium businesses. The by the company. On the same day the agreement, signed in the presence Kaluga Branch of N.E.Bauman MSTU of Tatarstan President Rustam received laboratory equipment from Minnikhanov, will give companies Volkswagen Group Rus LLC. from Kaluga’s pharmaceutical cluster access to specialized training for The government of Kaluga Region their employees, access to Kazan and Turkish joint-stock company University’s (bio) pharmaceutical 05.09 Kastamonu Entegre signed an innovations and the opportunity to Tekhnologiya ONPP and S.A. Lavochkin agreement on the implementation use and implement them in their SPA signed an agreement on of an investment project for the production processes. cooperation in the development of the construction of a wood panel Arktika space system. The companies manufacturing plant. The document will be developing and manufacturing was signed by Governor Anatoly double-purpose multilayer carbon fiber 07.08 structures: they will form the frame Artamonov and Kastamonu Entegre Board Member Akturk Yildirim. The government of Kaluga Region of the spacecraft and simultaneously and 1C signed an agreement on carry a payload. The Arktika space The document formalizes the cooperation in the field of information system is a unique Russian project. It parties’ agreement to build the new system development. On the same will supply accurate and continuous woodworking plant at the Lyudinovo day, the company opened a technical data for precise forecasting of weather Industrial Production Special support center for its products. The in arctic and northern regions. Economic Zone.

25 2014 ANNUAL EDITION HÖRMANN PUTS ITS TRUST IN KALUGA ENGINEERING Effective international cooperation in Kaluga Region

Hörmann is the world’s leading in 1935 by August Hörmann. manufacturer of doors and gates. Today the company is managed The company employees over 6,000 by his great grandchildren. The people who work at its plants in company promotes its family Europe, North America and Asia values throughout the world: over developing and manufacturing 80 representative offices in more high-quality products, including, than 30 countries and a networks gates, doors, door frames and of partners bring the company loading equipment for private and close to its clients worldwide. In industrial sectors. Hörmann drives Kaluga region, the demand for progress and sets standards in the Hörmann products began to grow international market. The company with the appearance of the first uses advanced technologies and foreign investors. The company’s works to continuously improve equipment was included in their existing products and create new construction projects, as it met ones. Its corporate philosophy is all technical and exploitation based on many years of innovations, requirements and safety standards. guaranteed quality and focus on To implement those projects, the customer needs. concern needed a partner to supply, The concern is the biggest in its install and provide maintenance field, but it has remained a family- support and to promote Hörmann owned company ever since founded products in Kaluga Region.

26 2014 ANNUAL EDITION HÖRMANN PUTS ITS TRUST IN KALUGA ENGINEERING

Eight years ago, Hörmann put its technical maintenance and equip- trust into a young company with ment repair center. High qualifica- great potential but little experi- tion of its specialists guarantees ence in the segment. Since then, we the successful outcome of their have been continuously expand- work. ing our knowledge: our employees Our engineers carefully examine make regular visits to the concern’s a client’s needs to offer the opti- plants, whether they get acquaint- mal portfolio of service and main- ed with new products and produc- tenance options, supervise all op- tion technologies, participate in erations and provide consulting on specialized exhibitions and study additional equipment. the experience of their colleagues. We comply with international Today Kaluga Engineering suc- labor safety standards. All our em- cessfully implements projects in ployees pass regular certification design, supply and assembly of pro- and qualification enhancement cess equipment and structures, pro- training, receive protective cloth- duction and service maintenance. ing and equipment. Our clients can The company is relied upon by be confident that labor safety stan- leading Russian and international dards will be strictly observed. companies operating in the region. Our maintenance service can be We greatly value the knowledge of relied upon in emergency situa- manufacturing culture that we ac- tions as well: we deliver spare parts quired through out cooperation. from our own warehouse, or, if nec- Hörmann equipment complies essary, arrange prompt delivery with the highest market demands from Hörmann warehouses. and requires qualified mainte- By contracting us for technical nance. Technical support is provid- maintenance, you are putting your ed to clients by the newly created equipment in reliable hands!

1/20 Pushkina Str., Kaluga 248000 Telephone/fax (4842) 400-700, e-mail: [email protected]

27 2014 ANNUAL EDITION COMPETENCIES2014

Obninsk company Tekhnologiya made it plant signed an agreement with Omsk Carbon to the list of top 30 innovative companies Mogilev (Belarus) for the supply of two steam in the TechSuccess-2014 rating prepared turbo generator units in 2015. One of the by the Russian Venture Company and the notable example of application of KTP power Association of Innovative Regions of Russia units in the civilian sphere is the T-48/62 (AIRR) in partnership with PwC and MSP Bank. supplied to the Adler thermal power station that supplied heating and energy to the Olympic Village during the Sochi Olympic Games. Vneshekonombank granted its “Development Award” to OFK-KARDIO. The award committee reviewed applications from 231 companies in 61 Russian regions. The Obninsk-based company and its project “Development and Market Introduction of Innovative Immunoassay Test Strips for Diagnosing Myocardial Infraction by Using Fatty-Acid Binding Protein” became one of the four winners in the category “Best Project of Small or Medium Venture”.

Volkswagen Group Rus begins production place of the SKODA Rapid compact liftback. This important achievement symbolizes a new In the rating of the stage in the implementation of SKODA’s Association of Innovative global growth strategy in Russia. Skoda Rapid, which integrates 19 “smart solutions” Regions of Russia debuted on the Paris car show in the autumn of 2012. Sales of the low-cost model began in assigned to Kaluga Region in April 2014. 2014. The region improved its standing by six positions NLMK-Kaluga becomes a winner of the against last year. The rating In 2014, Chemopharm LLC (STADA CIS competition “100 Best Organizations in Russia. is calculated on the basis holding company) launched production of Ecology and Environmental Management”. It of 23 parameters. The eight new products: Safocid, Levofloxacin, is one of the most prestigious environmental Cardiostatin, Loperamide, Fluconazole, awards that confirms the status of an group of leaders includes Cardionate and Azaphen. All Chemopharm environmentally responsible company. NLMK 11 regions. The top five are drugs and medications meet GMP uses the best of the available technologies. Of standards, In 2015, the pharmaceutical the RUR 38 billion invested in the plant, around St. Petersburg, Moscow, market will get several other new products, 20% was spent on environmental protection. the Republic of Tatarstan, including considerably complex products The plant’s treatment systems capture 99% of Nizhny Novgorod and Kaluga from the cardiology group (Enzix line). all atmospheric emissions. The plant also plans to conduct a major Regions. Kaluga Region leads reconstruction of its production facilities by three parameters: by in 2015 in order to increase production the share of high-tech and capacity and the range of manufactured products by 40%. science-intensive products in GRP, by the number of developed production Kaluga Turbine Plant manufactures power equipment that is used in 42 countries around technologies per capita, and the world. In autumn of 2014, VKG Energia by spending on research and thermal power station (Estonia) commissioned its second condensing turbine manufactured development. by the Kaluga plant. In September, KTP shipped The Sosenki Instrument Plant that specializes a turbo generator to the Energia-Novoyavrovsk in manufacturing of missile complex control Scientific Industrial Enterprise (Ukraine). The systems presented new products intended

28 2014 ANNUAL EDITION

for use in newborn care. These include reconstruction of production facilities and survive a collision with a bird at the speed of thermal matrasses for newborns that is installation of technological and testing 265 km/h. As of this date, the glass does not currently undergoing testing, and the Foton equipment. The company already has a have any equivalents to match its range of phototherapy irradiator – a joint development microelectronics shop and plans to launch characteristics. with the Academician Pilyugin Center for eight more technological sections in 2015. automation and instrument engineering. Healthcare developments are conducted within Kaluga Region is one of the first 28 regions to the scope of the federal program for import be included in the new mobile Russian travel substitution and will result in commissioning of guide. The iOS application TopTripTip – Take manufacturing of nine new products. a Trip to Russia (http://toptriptip.com) – is a project of the Federal Tourism Agency, Appreal LLC and the National Association of Tourism Volkswagen Group Rus opened a new Information Organizations. The first portion of training center. The project cost EUR regional information includes details about 50 220,000. The paint and coatings center is the tourism objects: 43 attractions, 5 events and fourth training shop in Kaluga. The previous 2 routes. The objective of the application is to ones (body works, assembly and efficient consolidate information for tourists travelling production centers) were opened in 2009 in Russia in a single digital product. TopTripTip and 2011. The new center is equipped to The Kaluga center for training of automotive is notable for that fact that it is accessible meet the standards of the German concern. industry specialists has commissioned even without an Internet connection. Future trainers are currently undergoing a new training segment. Creation of a training at the Volkswagen plant in robotic laboratory was the result of active Hannover. introduction of fully automated and robotized VW Kaluga succeeding in reducing the production lines at regional automotive volume of industrial waste by 37%. The plants. The laboratory was designed and company invested around EUR 4 million assembled on the initiative and with in modernization of its technological participation of experts from PCMA Rus LLC. processes to improve their environmental The 150 sq.m training facility will be used to characteristics. And that money was well- teach specialists how to program the robots. spent: the volume of industrial wasted Launched in 2007, the training center has reduced from 33.46 kg/car in 2011 to 21.07 already trained over 9,000 specialists for the kg/car in 2014. This is still 12% higher than automotive industry. the target, established by the concern for the Russian plant.

The logistics training center created by VW with an investment of EUR 170,000 opened at RT Chemcomposite holding company the Volkswagen Group Rus facility. The 576 announced the creation of a cluster for sq.m center represents the key logistics areas manufacturing of polymer composite of the plant – from the checkpoint to the products and structures for the aerospace supermarket and progression. The training segment of Kaluga Region. The idea to program was developed on the basis of the create an excellence center was first voiced one used at the logistics center in Bratislava in 2013, at a conference dedicated to the (Slovakia). The trainers of the newly opened 25th anniversary of the Buran flight. Obninsk complex have also completed training in company Tekhnologiya that is part of the Slovakia. The center will initially provide RT Chemcomposite holding will form the training to 500 employees. On July 9, Plesetsk spaceport successfully foundation of the cluster. performed a test launch of the Angara-1.2PP carrier rocket with nose fairing manufactured Obninsk-based Tekhnologya ONPP has by Tekhnologiya ONPP. Specialists from the KNIRTI JSC specializes in the creation of designed a unique organic bird and Obninsk-based company and the Khrunichev conceptually new types of electronic shatterproof glass for the Russian Ka-62 State Research and Production Space Center communications equipment. To solve its helicopter. This is the first step towards have been working on in since 2009. Obninsk objectives, the company has undertaken local manufacturing of a heterogeneous scientists have been successfully cooperating a technical modernization effort. This electrically heated bird-proof class for with the Space Center for almost 20 years, includes introduction of new methods for aviation. The glass designed by Obninsk on projects that include the development of control and management of development scientists combines light weight with Proton-M and Angara carrier rockets and the stages, introduction of new technologies, exceptional structural performance and can South Korean NARO.

29 2014 ANNUAL EDITION Gubernskaya Hotel

Convenient location, comfortable rooms and fist class service are qualities that are no longer decisive factors in hotel selection. They are expected. How do we compete on this market, and what can we offer to the guest that is not easily surprised? We found simple answers to these questions. Gubernskaya Hotel offers exactly that, which people miss so much away from home – true home comfort. It cannot be calculated or compared with anything else, it can only be experienced. When you reminisce about Kaluga, you will certainly want to stroll through its ancient streets again and to return to Gubernskaya Hotel.

8a, Televizionnaya St., Kaluga Welcome! +7 (4842) 50-00-05 [email protected] www.hotel-gubernskaya.ru

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HAVE SOME REST in peace and quiet after a busy day at work. The hotel has 31 rooms that fully comply with the European level of comfort.

HAVE A TASTE of some European and Russian cuisine at Gubernskiy Restaurant. Would you like to enjoy a quiet family dinner? Or, perhaps, throw an unforgettable corporate party?

DO BUSINESS in comfort. The conference hall is professionally equipped and perfect for business events. The capacity of the hall is 50 people.

31 2014 ANNUAL EDITION

+7 (499) 965-8183 [email protected] TRANSLATION SERVICES +7 (499) 965-8184 www.mistral-center.ru

WITH SUPPORT FROM THE MINISTRY OF ECONOMIC DEVELOPMENT OF KALUGA REGION

Published by Kaluga Information Agency

Director – Larisa Severina Mob. +7 910 860 35 43 [email protected] Editor – Tatiana Antipova Mob. +7 910 609 74 21 [email protected]

Agency for Regional Development of Kaluga Region 41, bld. 2, Dzerzhinskogo St., Kaluga, Russia www.arrko.ru Tel.: +7 (4842) 27-87-86, 27-87-85