#7 August 2016

JOKEY PLASTIK FIRST RESIDENT RESIDENT RUSH 2016 The only plant of the German AT SEPZ Investors compete to win, company in , page 3 begins work on site, page 4 page 8

ULYANOVSK REGION EXPANDS COOPERATION WITH CHINA

VOLGA-YANGTZE included guests from Szechuan, In July Ulyanovsk Region Anhui, Hunan, Hubei, Zangxi hosted the first meeting of and the city of Chongqing. the Council for Cooperation The Chinese delegation of Privolzhsky Federal District chose Ulyanovsk Region as the of the Russian Federation and meeting place for this significant the Committee of Upper and event for a reason. It is the Mid-Stream Yangtze (PRC) birthplace of Lenin, who is very (“-Yangtze” format) under much revered in China, and the the chairmanship of Mikhail region is also a part of the Red Babich, Russian President’s Tourist Route. Additionally, over Plenipotentiary Envoy in the past several years Russian- Privolzhsky Federal District Chinese economic cooperation and member of the PRC State has been experiencing rapid Council Yan Jiechi. The Chinese growth. “For Ulyanovsk Region, delegation visiting the region People’s Republic of China is one of the long-standing and NEW INVESTMENT significant partners, third in PROJECTS terms of commodity turnover and The first agreement has second in terms of import volume. been signed with Anhui External trade turnover with the Conch Cement Company PRC has grown by almost six times (China), one of top three world over the past six years,” Acting manufacturers of cement, to Governor of the Ulyanovsk build a cement plant in the Region Sergey Morozov said. Ulyanovsk Region. The company The July visit of the Chinese will invest 500 million US dollars delegation was no exception into the construction project. to the rule. The Volga-Yangtze The enterprise will produce Council meeting resulted 5,000 tons of cement a day, and 400 new jobs for residents in signing of two major of the region will be created. investment agreements with PRC enterprises. (continued on page 2) August 2016 2 INTERNATIONAL COOPERATION ULYANOVSK REGION EXPANDS COOPERATION WITH CHINA (starting on page 1) has been building a Chinese products distribution center in Ulyanovsk Special Economic Zone.

TOURISM INDUSTRY As of today there are some 20 joint Russian-Chinese projects in manufacturing, agriculture, education and tourism being implemented in the region. One of the largest is “Red Route”, an international tourism project, a discovery learning cultural tour for groups from China. The idea of the project was supported by the PRC State Council. Over less than 2 years of this proj- ect, Ulyanovsk was visited by more than 1,000 tourists from China. Over many years Ulyanovsk Chinese investors say they the entire Privolzhsky Federal ture of lysine with the amount Region has been cooperating appreciate all the efforts put District,” said Wang Jianchao, of investments in excess of with the Chinese provinces of forth by the Government of representative of Conch RUB 1.5 bln. Shanxi (administrative cen- the Region in the area of im- Company. Yet another project is being ter – City of Taiyuan), Hunan proving the investment envi- The project also has a sig- implemented in Ulyanovsk by and Anhui. On July 19 at the ronment. “Sergey Morozov has nificant social effect for the re- Golden Mountain company Volga-Yangtze Council Meet- been providing considerable gion. “The company has its own from China. Having received the ing Sergey Morozov signed an support to us, paying much at- project institute and a research status of resident at the Expert agreement to establish trade tention to our investment proj- and development center, which Council of the Ministry of Eco- and economic relations with ect. We are hopeful that we will allows to introduce cutting- nomic Development of the Rus- another Chinese province – be able to complete all further edge production technologies sian Federation, the company Hubei. stages in its implementation and create high-quality prod- with their help, such as filing all ucts at low cost. Cutting costs the necessary documents and related to concrete is important completing all the necessary ad- for us because it helps lower ministrative procedures. Today construction costs for indus- our regions – Anhui Province trial enterprises and residential and Ulyanovsk Region – have houses in the Ulyanovsk Re- been actively cooperating at gion,” said Sergey Vasin, CEO the level of heads of regions. of Ulyanovsk Region Develop- This cooperation has been quite ment Corporation. productive. After we build the The second investment cutting-edge hi-tech enterprise agreement – with Wang Sheng here, we expect to make a con- Company – presupposes con- tribution to the development struction of a flour process- of the Ulyanovsk Region and ing enterprise and manufac- August 2016 3 LAUNCHING A PLANT

PLASTIC PACKAGING FOR RUSSIA AND

JOKEY GROUP: » Founded in 1968. » 14 plants in 11 countries. » Deliveries to 80 countries of the world. » 1,800 employees. » Annual turnover of the company is around EUR 425 mln.

he new enterprise, Investments into construc- “We are confident that we Earlier deliveries to the Jokey Plastic Uly- tion and technical re-equip- will be successful and that this Russian market came from a anovsk, LLC, a plastic ment of the new plant amount- enterprise has a good future. plant in Mogilev, Belarus. The packagingT plant, opened in ed to more than RUB 700 mln. There are many reasons why new plant in Ulyanovsk, lo- the Ulyanovsk Region in 2016. Today the enterprise employs we chose Ulyanovsk Region cated some 900 km east of This is the first plant of the in- 50 people. A total of 13 hi-tech for localizing our production,” allows the company ternational packaging manu- injection moulding machines Herbert Kemmerich, Manag- to be closer to their Russian facture in Russia, and 14th plant produce plastic containers ing Founder of Jokey Group customers and expands the of Jokey Group (Germany) in from 1.1 to 20 liters in volume said at the opening ceremony. sales territory to the Urals and the world. for transporting and selling “The first was the human fac- . The enterprise manufac- all kinds of products. After the tor. We really appreciated the The area of the enterprise tures packaging for all types enterprise reaches its rated ca- attitude of Governor Sergey in Ulyanovsk is 9 hectares, of packaged products in food, pacity, the investor expects the Morozov to our project. Sec- manufacturing facilities and medicine, construction and number of consumers to grow ondly, Central Russia is a very warehouses take up 5,000 m2. chemical industries and deliv- to 100, and output – to more important region for us, and Full-scale production was ers its products across Russia than 4,000 tons of products this is why we started building started just 20 months after and Kazakhstan. a year. a manufacturing facility here.” the construction began. August 2016 4 SPECIAL ECONOMIC ZONE

FIRST RESIDENT BECOMES OPERATIONAL AT ULYANOVSK SEPZ

he opening cer- floor heating system has cludes 333 m2 of office emony of the been assembled. The space and represents A Class Ware- area of the warehouse just the first stage of houseT of T1 Company section is 1,928 m2. According to CEO of T1 Hangar Complex will Technic One common (Russia) took place in In addition to the project. The second T1, LLC Mukharbek Au- allow to service up to April. loading and unloading stage will include con- shev, implementation of three broad-hall aircraft The facility has been zones, the building has struction of hangars and the next stage of hangar like Boeing-747 and built with use of cutting- a special ramp and 4x4 construction will begin in a customization center 777, or up to 10-12 nar- edge technologies and m gates to unload avia- January 2017. The total for aircraft on the terri- row hull Boeing-737. It equipped with tall levels tion containers, which tory of the SEPZ. amount of investments will also house produc- of shelving manufac- will allow to reload car- “T1 Company has by Technic One Company tion facilities for repairs tured by Jungheinrich goes directly from the many plans for develop- will be around RUB 6 bln. of parts and engines, Company (Germany). planes on the apron of ing this project and cre- The new T1 Hanger Their setup allows to Ulyanovsk-Vostochny ating the largest aircraft Complex will also house metal processing and place products on Airport, which is lo- hangar complex in the the conceptual Service, avionic equipment. The shelves 17 m from the cated side by side with country for aircraft re- Maintenance and Repair company has already ground level. The warm the SEPZ. The facility in- pairs at the Ulyanovsk supermarket. In addition started work on creat- SEPZ. The new terminal to providers of techni- ing aircraft engine repair cal maintenance and and logistics center will and customization for create new ways for in- repair service for aircraft, new Russian aircraft – teraction with Russian the new enterprise will BC, SSJ, and MC-21. An- and foreign enterprises also offer auxiliary ser- from China and Europe,” vices, such as aircraft other possible new proj- said Sergey Morozov, painting, customiza- ect involves converting Acting Governor of the tion, cabin upgrading passenger aircraft into Ulyanovsk Region. services. The separate trucks.

PROMTECH-ULYANOVSK

he second resident of area. The new enterprise will be the zone, PROMTECH- launched in the fourth quarter Ulyanovsk, JSC, is of this year. completingT the construction “In June, at the meeting of the stage. The enterprise will man- Expert Council in Moscow we ap- ufacture sets of onboard cable plied to change the parameters networks and piping systems of the business plan, and it was for aircraft. The manufactur- approved. We will expand the will grow accordingly,” said Oleg across Russia. One of the main ing building has been built, all project significantly, increasing Siyanchev, CEO of PROMTECH- partners of the company is external works have been com- investments from 240 million to Ulyanovsk, JSC. Aviastar-SP, JSC and AeroCom- pleted. Work is underway on more than 700 mln. The number Currently the investor is rent- posit-Ulyanovsk, CJSC, which interior decoration and land- of new jobs will increase to 470 ing its manufacturing facilities, makes wings for MC-21 aircraft scaping of the surrounding people per shift, and the output and deliveries are provided all in Ulyanovsk. August 2016 5 SPECIAL ECONOMIC ZONE

INDUSTRIAL PARK FIVE NEW SEZ PROJECTS

n June the Ministry of Economic Development of Russia held a session of the Expert Council on Ulyanovsk Special Economic Zone, which considered and approved busi- ork is in full swing to water communication lines are Iness plans of potential SEZ residents. build the industrial being installed. The pile field for In the near future Leontaridis, CEST, Oxyblock, Inter Logis- park. The first pile for the production building is being tic Park and Golden Mountain will receive their resident cer- theW basement of the building set up, and foundations of the tificates. was driven in on June 3. The four- boiler house and the transform- Leontaridis, LLC makes furniture and interior design ar- storied production and office er substation have been com- ticles. The company has a showroom. The production will be building will house more than 20 pleted. The facility is expected relocated from Greece and take up a land plot of 8.5 hectares. small and mid-sized enterprises. to enter into operation in April The investments will amount to RUB 4.5 bln, and up to 340 The total area of the building will 2017. First applications of poten- new jobs will be created. be 14,362 m2. Vertical planning tial tenants have already been Inter Logistic Park, LLC is a logistics center for storing and has already been completed, and received. processing palletized cargoes. A total of RUB 873 mln of invest- ments will be made into the facility that will take up 7.7 hectares. Oxyblock, LLC: production of onboard emergency oxygen equipment. The enterprise will occupy the area of 1 hectare, INFRASTRUCTURE the total amount of investments will be RUB 103 mln. The res- ident is expected to become operational by the end of 2018. CEST, LLC: production of LED products. The enterprise will occupy 0.77 hectares, the amount of investments is RUB 70.8 mln. The new enterprise will be launched in the fourth quar- ter of 2017. Golden Mountain Co, Ltd: second international investor, a company from China, distributor of Chinese-made products. Various commodities – construction materials, computers and office equipment, construction equipment and tools, electronics and electronic equipment, home electronics, vehicle spare parts, and other products will be delivered to onstruction of customs in- Construction of F Category taxi- warehouses in the Ulyanovsk Region. The total amount of in- frastructure was started in way is nearing completion on the vestments into the project is RUB 62.5 mln, the facility will April. The pile foundation territory of the SEZ. The taxiway will take up 1 hectare of the territory. Сwas completed in August 2016. The be used to taxi aircraft from the air- customs facility will include an ad- port to the port zone for repairs and Ulyanovsk Special Economic Zone is a federal ministrative building, an inspection maintenance. The taxiway will be 44 project being implemented by the Ministry of Economic room, a weighing room, a garage, a m wide and 573 m long. 100% of Development of the Russian Federation and the customs checkpoint for vehicles, a concrete works have been complet- Government of the Ulyanovsk Region at Ulyanovsk- customs checkpoint for individuals, ed, technological seams are being Vostochny International Airport. and other facilities. The project in- installed. Aviation gates will be in- 1st Startup Complex: 120 hectares. cludes provision of all the necessary stalled at the border with the airport. 2nd Startup Complex: 204.7 hectares. customs equipment. The facility is The taxiway is expected to become Residents: T1, LLC; PROMTECH-Ulyanovsk, JSC; expected to become operational in operational in September. Volga-Dnepr Technics Ulyanovsk, LLC; InterAvionika, LLC; early 2017. PK AFT, LLC; 1A, LLC August 2016 6 REGIONAL NEWS

DMG MORI OPENS ELBRUS COMES TECHNOLOGICAL CENTER IN MOSCOW TO DIMITROVGRAD

new anchor resident ap- anovsk but other territories as well, peared in Dimitrovgrad such as the atomic industry town Industrial Park in the Uly- of Dimitrovgrad that has an excel- anovskA Region. lent potential for industrial produc- An investment agreement to tion. We have set up an industrial implement the project in Dimitro- park here, and it is now being filled vgrad was signed in June by Acting by Russian and foreign investors Governor of the Ulyanovsk Region who will implement their produc- Sergey Morozov, CEO of the Uly- tion projects here. These projects anovsk Region Development Cor- will allow us to create new jobs with poration Sergey Vasin, and CEO of competitive salaries for the residents Research and Development Center of our region, in this case – residents Elbrus, LLC Alexey Abroskin. of Dimitrovgrad. After implement- he Moscow of- comes through with his The project presupposes setting ing the agreement we signed today, fice of the Jap- promises. And there’s up a full technological cycle produc- a total of 1,500 new jobs will be cre- anese-German very little red tape. The tion of chemical and carbon fibers. ated in Dimitrovgrad. ConcernT has offices, longer we work here, Research and Development Center Sergey Vasin also stressed meeting rooms, a tech- the more convinced I be- Elbrus, LLC will be located on a 100 that this hi-tech project is a good nological center and come that I was right we hectare plot in Dimitrovgrad Indus- example of import replacement. classrooms. chose Ulyanovsk Region. trial Park. According to the inves- The products made at this en- The technological We have established tor’s data, investments in the first terprise will be in demand by center is a showroom contacts with educa- stage of the project will amount to a wide range of enterprises in of 1,300 m2 where 20 tional institutions in the RUB 6 bln. transport, energy, aircraft engi- pieces of hi-tech ma- region, and this helps According to Sergey Morozov, neering, light industry, city in- chinery are on display. us make sure we have today it is especially profitable to frastructure, construction, and The exposition includes as many excellent pro- invest in municipal entities: “We are railway sectors and housing and the full line of prod- fessionals as we need. working on developing not only Uly- utilities. ucts manufactured at Ulyanovsk Region De- Ulyanovsk Machine- velopment Corporation Building Plant, LLC, the is very investor-friendly, most advanced produc- and the Governor par- tion facility in the DMG ticipates in all meetings NEW RESIDENT JOINS MORI global network. and events in person. I The opening of an have an impression that office in Russia’s capi- he is at work 48 hours a PARK tal is an important step day. We will use our plant to expansion of DMG in Ulyanovsk, which is new wood-processing in Novoulyanovsk. The new wood- MORI’s presence on the the most cutting-edge company will appear in processing enterprise will include Russian market and will plant in our network, to the Ulyanovsk Region. a plant manufacturing oriented AAn investment agreement was strand boards (OSB) with the help the concern to be- manufacture machin- come closer to its Rus- ery that we will then signed by Acting Governor of the output capacity of 120,000 cubic sian customers. export to Europe, and I Ulyanovsk Region Sergey Morozov, meters a year, a timber harvest- “I see Ulyanovsk Re- think these goals speak First Deputy CEO of Regional Devel- ing line, and a euro-pallet manu- gion as a very reliable for themselves. These opment Corporation Igor Ryabikov, facturing line. The new project business partner, first will be excellent quality and CEO of Arakel-DO Company will create 300 new jobs. Accord- and foremost, due to Russian-made products,” (Russia) Ararat Arakelyan. ing to the investor’s calculations, the personal influence of said Christian Thönes, The new facility will serve as an the volume of investments into Governor Sergey Ivanov- Chairman of the Board impetus for development of the the project will amount to some ich Morozov, who always of DMG MORI. second part of the industrial zone RUB 5 bln. August 2016 7 REGIONAL NEWS TRIMILL MACHINERY FOR AIRCRAFT INDUSTRY

RIMILL Com- played by the processing pany (Czech industry, vehicle and air- Republic) has craft building. This cre- transferredT machinery ates many opportunities manufactured at the for cooperation,” – Jan company to Aviastar-SP, Mládek commented. JSC Aircraft Corporation According to industry in the Ulyanovsk Region. experts, TRIMILL equip- The event was at- ment has been used at tended by Acting Gov- Aviastar-SP since 2009. ernor of the Ulyanovsk Over this time HPM ma- “We are at the early Ulyanovsk Region. A have been working on Region Sergey Moro- chining centers have won stage of technical re- corresponding memo- developing new equip- zov, and the Minister of the reputation of reliable structuring, and a fairly randum was signed ment and modernizing Industry and Trade of and highly productive considerable part of the between the Govern- our current products. the Czech Republic Jan equipment that could work has already been ment, Ulyanovsk Region In Ulyanovsk region we Mládek. stay in operation three done. I think that TRIMILL Development Corpora- manufacture machin- “The Czech Republic shifts each day. In 2014 Company products will tion and the investor in ing centers for the air- has been establishing the aircraft building en- help us a great deal in November 2015, during craft industry – Aviastar ties with various Rus- terprise purchased four increasing our productiv- the working visit of Ser- enterprise. We could sian regions for at least more Gantry equipment ity,” said Andrey Kapus- gey Morozov to Czech have gone to any other 20 years. We started our units. Three HPMs will be tin, Managing Director Republic. region in Russia but we cooperation with regions used in the Airframe Me- of Aviastar-SP, JSC. “Our machinery is chose Ulyanovsk Region that were rich in mineral chanics Section that man- The Czech company being used all over the because of the excellent resources. But as of late, ufactures steel and alu- is also planning to ex- world. Our equipment conditions offered to us we have been focusing minum parts of the plan, pand its cooperation has been installed on by the government of the on regions like Ulyanovsk, and the other one – in the with the Ulyanovsk Re- plants in the Czech Re- region for our projects, where the structure of Production Preparation gion. Previously TRIMILL public, Poland, Germany and because many of our economy is very similar to Section, where complex had declared its inten- and other countries. We customers are here,” said that of the Czech Repub- technological equipment tion to localize machin- create machinery of the Milan Julina, CEO of lic, with considerable role is made. ery production in the future, and to this end we TRIMILL Company. August 2016 8 LEISURE RESIDENT RUSH 2016

esident Rush 2016, the Spartaki- Although every team wanted to win, the ade of Investors, took place on May competition was held in the atmosphere of 28 on one of the stadiums of Uly- friendship: the competitors supported each Ranovsk. other and were genuinely happy for their Residents of Zavolzhye Industrial Park opponents when they won. All the partici- competed in archery, dip bar exercises, pants received a positive charge, and the chinups, long jump, hoops shooting, 1,600 fans watching the competition were happy m (4x400 m) running relay and mini football. as well.

Suetomi Satoru, Tatyana Borisova, Tyre Manufacturing CIS, LLC, Technical Director: Nemak Rus, LLC, HR Department Specialist: “I myself am not participating today, because this is an event for “The Spartakiade became one of the most memorable events of younger people, but I do think this is an excellent undertaking, 2016, along with the Healthy Lifestyle Festival in the Ulyanovsk which is very good for team spirit.” Region. Such events are important because they promote a healthy lifestyle and help our employees develop effective team commu- nication. Thank you to all organizers of the Spartakiade: you have given us lots of good emotions and positive impressions! The Spar- takiade has definitely inspired many of our staff members and city residents to do more sports and lead a more active lifestyle.”

Dmitry Kukushkin, Hempel, CJSC, Head of Logistics: “I have enjoyed the format of the event because I got to talk to staff from other enterprises and could study firsthand the corporate The winners – DMG MORI culture of other companies. The organizers did a good job. We will return to this event next year by all means.”