Ulyanovsk region of opportunities Contents
About the region
Economic potential
Investment attractiveness
Ulyanovsk Region Development Corporation EconomicEconomic geographicalgeographical position
The Ulyanovsk region is situated in the south east of the European part of Russia, in the centre of the Privolzhsky Federal District
Developed industrial base and high consumption potential
within a radius of Within a radius of Moscow 1 000 km (620 miles) 500 km (310 miles) Industrial enterprises 193 thousand 47 thousand Part in industrial production of Russia > 50% 15% Ulyanovsk
Number of potential clients > 44 million > 22 million
Distance to other cities Kazan 210 km (130 mi) Samara 260 km (161 mi) Nizhny Novgorod 440 km (273 mi) Moscow 875 km (543 mi) St. Petersburg 1 575 km (978 mi)
page 3 Privolzhsky Federal District
part of GRP of Privolzhsky Federal District in GRP of Russia, 15.3% II place among federal districts of Population in PFD the Russian Federation 29.9 I place among federal districts of RF million people
Automotive industry. в радиусе в радиу vсе 20.9% 1 000 км 500 км of population in Aeronautic Engineering. Russian Federation Production of agricultural193 goods. тыс . 47 тыс . Production of mineral fertilizers, synthetic resins and Five cities with > 50% 15% plastics. population of more than 1 million people : Expenditure on technological> 44 innovations, млн . >export 22 млнof Russian. technologies. Nizhny Novgorod Freight turnover of motor vehicles. Samara Kazan Ufa II place among federal districts of RF Perm’ Share of industial production in economy of Russia. Concentration of industrial and scientific research in higher educational institutions.
page 4 Ulyanovsk regionregion––––central position in PFD
Centre of federal and international logistic routes
Airports “River-Sea”type ports River ports Roads of federal significance Ulyanovsk Railway roads
Through the region pass:
Air, railway and car routes at all directions of Russia.
International airlines connecting Povolzhye with Europe, Middle Asia, Middle East and China.
page 5 Density of population
637,9 Central citycity————UlyanovskUlyanovsk. . thousand 123 people Included in 20 largest cities of RF thousand people Ulyanovsk 18,6 Territory of the region thousand people Dimitrovgrad 37.2 thousand square meters Inza Population Barysh Population million people 17,2 1.3 thousand people In the region there is observedobserved:::: The most multinational and tolerant region of Povolzhye increase in birth rate
reduction of emigration
page 6 Personnel potential
17 higher educational 35 secondary specialized institutions educational institutions Including 5 state universities
53.7 thousand of students 20.9 thousand of students
System of science and education in the Ulyanovsk region:
Scientific research and development in the sphere of new technologies, materials and spare parts. System of personnel training for enterprises of military industrial сomplex, automobile production, aircraft production, etc.
Workers of science
Labour resources Employed in economy 9 000 people 807.2 602.6 250 doctors of science thousand people thousand people 1 400 candidates of science
page 7 Innovative potential
According to the part of R&D* in GRP the Ulyanovsk region is in the top five leading In the sphere of regions of Russia innovative activity are involved : More than 7 thousand employees are involved in R&D sphere.
24 organisations Technological innovations.
11 organisations According to the data of Rospatent, Organisational Ulyanovsk oblast belongs to a group innovations. of regions with high level of inventive activity. 11 organisations Coefficient – 3,46. Marketing innovations.
* Scientific research and experimental design bureau
page 8 Comfortable living conditions
Accomodation
2013 of worldwide chain «Mariott» (120 rooms) – 2014 2013
page 9 Ulyanovsk region ––– isisis… is …
Settlement “Undory” Natural reservation N.М. Karamzin I.А. Goncharov A.S. Pushkin «Sengileevskiye gory»
Black Lake, Dendropark N.М. Yazikov V.I. Lenin D.D. Minaev Terengulsky district
Yulovo Lake, Worker’s settlement Yazikovo, A.А. Plastov А.А. Lyubishev A.D. Saharov Inzensky district Karsunsky district
page 10 Touristic potential
Unique natural ecological Historical monuments complexes Museum memorial V.I.Lenin Museum of local lore named after I.А. Volzhskaya aquatoriya. Goncharov. Undory. Museum of contemporary arts named after. Natural reservation «Sengileevskye gory». А.А. Plastov. Dendropark. Museum of I.А. Goncharov. Museum of Civil Aviation of Russia. Chain of historical and cultural Medical tourism projects Improvement on the basis of medical centre «Russky Bereg». SRIAR. «Handicraft Centre». Chain of recreation houses, pensions and sanatoriums in the picturesque parts of the «Reservation of XIX century». region.
City Symbols Volga UAZ Civil Aviation Lenin Goncharov Venez Aviastar Museum Karamsin Oblomov
page 11 Economy
Gross regional product of the Ulyanovsk region increased twice within the period from Powerful industrial 2005 till 2011 ((($($ blnblnbln.bln ...)))) complex and scientific innovative structure
1st place in Russia 1 for production of civil aircraft.
2nd place in Russia for the part of machinery 2 construction in total amount.
th 2,6 3,2 3,9 4,8 4,9 5,6 6,3 5 place in Russia 2005 2006 2007 2008 2009 2010 2011 5 for production of automobiles.
page 12 Structure of industry in 2011
14% 4,5% Processing Production and Mining of minerals production distribution of electrical energy, gas and water 29% Production of 14,2% means of transport Other and equipment
6.5% Metallurgical production 13,8% 6,5% Production of food Wood processing products, including and production of drinks construction 11.5% materials Production of electrical equipment
page 13 Aviation cluster
Ulyanovsk ——— centre of aircraft construction
Nowadays, in the region there is a complete production cycle of production of air crafts of different types. Production is made in cooperation with the world’s players and companies from other regions of RF, having competence in aircraft construction. Managing company - Regional government department “Development of the aviation cluster of the Ulyanovsk region” . 36 participants from 7 specialization fields, 32 enterprises-cooperators. Production and technical maintenance CJSC «Aviastar SP». OJSC «Utes». OJSC «Ulyanovsk construction bureau of «Volga Dnepr Technics Ulyanovsk» Ltd. instrument production» CJSC «Aerocomposit».
page 14 Automotive cluster
Design development and production Science and education More than 100 enterprises of automotive industry Automobile production: Ulyanovsk State technical university. OJSC «UAZ». OJSC «Ulyanovsky mechanical plant №2». Dimitrovgradsky technical Production of trucks and BAW buses (China). college. Automotive components : Ulyanovsk automechanical OJSC «Autodetal’ Service». vocational school. OJSC «Ulyanovsky Motorny Zavod». LLC «Autokontakt». Ulyanovsk electromechanical OJSC «Dimitrovgradsky autoagregate plant». college. LLC «Simbirsky plant of window raisers». OJSC «Utes». Industrial Parks Plant on production of autocomponents of the company «Takata» DAAZ Industrial Park Zavolzhye Industrial Zone
page 15 Logistic advantages of the region
Russian automotive market: production and consumption by 2020 *
Anticipated production capacities at the beginning of 2012
Annual production volume of automobiles in the In a radius of radius of 500 km 1 000 km (310 mi) from 193 Ulyanovsk city is thousand over1,5 million cars in 2012 > 50% Location of the automobile cluster in the Ulyanovsk region makes it possible for its participants to make deliveries of raw materials and end products to > 44 million consumers by optimally profitable way. Localization of a new industrial enterprise in the territory of the Ulyanovsk region provides a company investor with equal access to consumers in the western, southern and eastern parts of Russia.
Cost of cargo deliveries from Ulyanovsk to Moscow is 3-4 times lower than cost of cargo deliveries from Moscow to Ulyanovsk
* Capacities by 2011. Capacity is formed by total production capacity and can differ from factual volumes of output. Source: State statistic service, “Avtostat, LLC”, OJSC “AvtoVAZ”.
Page 16 NuclearNuclear innovativeinnovative cluster. Structure of cluster
Scientific Research Institute of atomic reactors Nuclear science Centre of applied nuclear research
Plant on production of radiopharmaceuticals Innovative science Centre of medical radiology
Centre of education and retraining of personnel Innovative workforce Affiliate of Scientific Research Nuclear University MIFI
International centre of collective use Implementation of research Specialized technopark
page 17 ЯдерноNuclear-innovative-инновационныйNuclear innovativecluster. кластер cluster. . ОсновныеMain projectsпроекты Main projects
Creation of an affiliate of Scientific Construction of a multifunctional highhigh speedspeed research nuclear university “““MIFI“MIFIMIFI”””” research reactor MBIR
Branches: Investment volume — $796.9 mln. Technological. 300 workplaces. Mechanical. Implementation period — till 2020. Energetic. Pharmaceutical. Plant on production of Extra education. radiopharmaceuticals Range of radioisotopes : Property market Molybdenum 99 Gadolinium 135 strontium 89 curium 244, 248 Campus with total area of 57 000 sq. m. Iodine 131 Tin 177m Training of 1 500 specialists with higher lutetium 177m education. tungsten 188 Phosphorus 33 americium 241, 243 Training of 900 specialists with secondary vocational education. Production of molybdenum-99 Hostel accomodation for nonresident students – 1200 people. Investment volume — $12.7 mln. Sport complex. 50 workplaces. Federal school boarding for children from remote Implementation period — 2010. regions .
стрpage. 26 18 page. 21 Nuclear-innovativeNuclear innovativecluster. cluster. Main projects Main projects
Construction of a prototype of leadlead bismuth reactor on fast neutrons Federal hightechnological Center of medical bismuth reactor on fast neutrons radiology FMBA of Russia Investment volume – $430 mln.
Investment volume – $446.2 mln. Production of heat relesing elements for 1 420 workplaces. reactors on fast (MOKS(MOKS project)project) 18 000 inpatients per year. Investment volume — $95 mln. 115 200 outpatient visits per year. 450 workplaces. 17 000 diagnostic tests per year. Implementation period – 2012. 15 000 therapeutic procedures per year . Implementation period – 2012. Construction ofpolyfunctional radiochemical complex International center of public use “““Irradiations“Irradiations Investment volume — $95 mln. materials research centrecentre””””
Purpose of creation:
Increase of effectiveness of research complexes use. Integration and extension of international cooperation. Increase of number of services by 5–10 times till 2020 (from $95 – till $191 mln.).
стрpage. 27 19 page. 22 Agroindustrial cluster
11% of gross regional product
2 083 total area of agriculture lands (more than Leading enterprises of half of the regional territory) food industry : thousand ha «SABmiller RUS» LLC (Efes). In the region produced and cultivated: «Mars» LLC. OJSC «Confectionery Group«SladCo». wheat veal Industrial union «Undorovsky plant of mineral water sunflower lamb «Volzhanka». «Simbirsky beacon». OJSC «Simbirskmuka». sugar beet pork OJSC «Ulyanovskchlebprom». OJSC «Dicom». soybean poultry
corn milk and eggs
page 20 Cluster of construction materials production
Cement production Glass production
11 explored deposits of cement raw materials. 2 large deposits of quartz sands. Two cement plants: Processing plants and glass factories :
Production of dry construction compounds Production of roofing materials
Brick production Production of concrete products, building materials and concrete mixtures Diatomite production Diatomite raw materials — Inzenslkoye deposit Plants:
page 21 IT cluster
Purpose of the project: Creation of an effective ecosystem in the Ulyanovsk region for development and commercialization of innovations in the sphere of IT; Creation of additional 5000 working vacancies in the region within five years.
Components of the formed cluster Educational project ”IT Academy” Concentrated infrastructure World famous regional IT companies :
Ecwid ITECH SimbirSoft Echo MST Скрипт
Centers of innovation generation in the regional higher educational institutions:
стр . 22 Investment ratings of Ulyanovsk Region
Doing Business in Russia-2012 National rating of the conditions of doing business in Russia is prepared by The World Bank and IFC 1 1st place among 30 participating cities
Ratings’ agency “Expert RA” International rating agency «Fitch Ratings» Credit rating of the regions In foreign currency BB- ААА High level of reliabiliy long term rating B Investment rating of the region Short term rating In national currency 3ВВВ1 BB- Lowered potential long term rating National rating Moderate risk ААА+ long term (rus) 2011/2010 Forecast on ratings The Ulyanovsk region has improved the dynamics of investment risks by 6 positions. Stable long term ratings The dynamics of investment potential has been improved by 2 positions. Source: http://www.fitchratings.ru/media/creditreport/finances/ Source: http://raexpert.ru/database/regions/ulyan/ Ulyanovsk_Region_Report_221009_RUS.pdf
page 23 Measures of investorsinvestors’’’’support
Securing the curators from the Members of Progressive regulatory and legal work the Government for major investment framework in the investment sphere. projects.
“Board of investment” has been created under the jurisdiction of the Governor. System for operative management on implementation of investment projects at The authorized body for investment the level of the Governor. promotion and support of investment projects (OJSC “Ulyanovsk Region Development Corporation") Venues with prepared infrastructure for business.
page 24 Preferences and benefits
Tax incentives and subsidies Progressive investment legislation system Law of the Ulyanovsk region «On the development of the investment activity in the territory of the Ulyanovsk region in the territory of the Ulyanovsk region» on March 15, 2005 №№№019-Z0 Corporate profit Tax 20% 2% To the budget 15 20% 4.5% = 15,5 % of the RF years Incentive - Tax incentive from the moment of Tax rate in the RF Tax rate in Ulyanovsk 13,5% volume in emergence of the Investor Ulyanovsk To the budget taxable base of the region
2% To the budget 15,5 % of the RF 10 Subsidy years Tax rate in Ulyanovsk 13,5% from the moment of Investor To the budget emergence of the of the region taxable base Reimbursement 13.5% from the budget
Differen- Corporate property Tax 2,2% Transport Tax tiated Land Tax 1-10 11-15 10 8 years years years years from the moment of 0% from the moment 1,1% from the moment 0% from the moment 0% emergence of the of emergence of of emergence of of emergence of taxable base the taxable base the taxable base the taxable base
The period of the validity of Tax incentives does not depend on the moment of the beginning of payback period.
The cumulative effect for the investor makes 30-50% of economy of investment expenses
стр . 25 Special Economic Port Zone
Federal status (Federal law №116 FZ from 30.12.2009 «On special economic zones in the Location on the map Russian Federation». Tax and customs duty preferences for 49 years.
Developed engineering infrastructure: automobile roads, railway road, electricity, heating, sewage.
9 km from SEPZ – industrial site of Ulyanovsk aviation complex, 7 km industrial zone “Zavolzhye”. Developed social infrastructure – 10 km from SEPZ.
Administrative support by regional and federal authorities.
Strategic location. Distance from SEPZ to: Federal road – 7 km (4.3 mi). Cargo river port capable of accepting passenger and cargo vessels of “river sea” type – 17 km (10.5 mi). Railway station, connected with the airport by railway line – 7,5 km (4.4 mi). Runway of the airport “Ulyanovsk Vostochny” 1,5 km. Industrial zone “Zavolzhye” 5 km (3.1 mi).
page 26 Special economic port zone
Federal law №116 FZ “On special economic zones in the Russian Federation”
1. Exemption from VAT (value added tax) on the main activity. 2. Exemption from excises. 3. Compensation of VAT from the moment of placement of goods in Special Economic Port Zone.
4. Exemption from property tax for the period of 15 years. Creation of 5. Exemption from land tax for the period of 10 years. ! engineering and 6. Reduction of income tax to 0% in the part to be paid transport infrastructure at the in the regional budget. expense of budget 7. Exemption from customs duties. funds.
Tax and customs preferences for 49 ! years.
page 27 Industrial zone «««Zavolzhye«ZavolzhyeZavolzhye»»»»
Direct access to the federal and regional highways (not through the city) – 0 mi Junction to the existing industrial zone. Availability of railway branch, to railway station “Verkhnyaya Terrassa”— 7,5 km (4.4 mi). Cargo river port, capable of accepting passenger and cargo ships of the «river sea» type— 7 km (4.3 mi). International airport “Ulyanovsk Vostochny” — 4 km (2.5 mi). Special economic port zone — 7 km Area of industrial zone— 623 ha (4.3 mi). Land sites with moderncentralized engineering and transport Residential area (250 thousand people ) infrastructure. — 4 km (2.5 mil). From 2008 to 2011 at the expense of municipal body, Investment fund of the RF and the constituent territory of the RF there were built: Legally “transparent” status of land sites. Automobile roads 7 171 m (4.3 mi) Pressure sewage. Availability of ecological expertise. Sewage station capacity 900 cubic m/h. Water supply 8 939 m. Storm sewage 8 236 m. Gas supply 0,6 МММPааа. Surveying of land sites. Outdoor lighting 10 000 m.
At the expense of a private investor: Electric substation 400 kW. Electric networks 10 kV .
page 28 Industrial zone «Zavolzhye»
Operating residents Scheme of resident location in the industrial zone “Zavolzhye” «MARS» Plant on production of pet food.
Railway line Residential International Plant on production of confectionary. area with 250 airport thousand “Vostochny” Investments: over $191 mln. people – 5km 5 km Existing road Projected road Existing gas pipeline Projected gas pipe line Existing water pipe line Projected water pipe line Rainfall sewage Household sewage Railway the point of cut-in Land plot (rent) «SABMiller» (EFES) Land plot (ownership) Brewery. Investments: $229.5 mln. Automobile road Ulyanovsk- Samara
Dimitrovgradskoye shosse
The layout of the territory is made by the company “Assman Beraten+Planen” (Germany)
стр . 29 Industrial zone «Zavolzhye»
Construction stage
«Jokey Plastik» Gildemeister «Takata RUS» LLC NSG \ Pilkington Schaeffler Group Machine-tool plant . Plant for the production Plant for the production of Plant for the production of Plant for the production of Investments: automotive components. the float glass. automotive components. of plastic containers. $25.5 mln. Investments: Investments: more than Investments: $31.9 mln. Investments: $51 mln. $335 mln. $28.7 mln.
Joint Russian-German company «Haltek» «Narodny Plastic, Ltd.» «Ulyanovsk center for transfer of CJSC «Philco-Volga» Plant for production of (Russia) the technologies» Plant for the production of modular aircraft components. Plant for the production of Nanotechnological center. construction Investments: PVC window-profile. Investments: elements of buildings using $4.8 mln. Investments: $40.7 mln. nanotechnologies. $23.9 mln. Investments: $27.4 mln.
стр . 30 Industrial zone Karlinskaya
Functional content: The zone is aimed at placement of industrial enterprises. Transport infrastructure: The land plot is situated in the territory in the proximity to the federal road A151 “Syzran Tsvilsk”. Along the northern border of the industrial zone there is a railway line.
Human potential: Thanks to the placement within the borders of Ulyanovsk city the industrial zone is provided with human resources.
Engineer’s infrastructure: Main gas pipeline Water pipe line: Ø 1200 mm Location: Sewage Electricity supply line: 2 lines 110 kW Industrial zone is situated in the Heating: Heat electric station №1 Leninsky district of Ulyanovsk city to the south west of village Distance from industrial zone “Karlinskaya”: Karlinskoye. to Ulyanovsk – 0,5 km to the airport «Ulyanovsk Centralny» 1,5 km Area: 350 ha to the nearest railway station – 2 km
стр . 31 Industrial zones “Novoulyanovsk” and “Novospasskoye”
Industrial zone “Novoulyanovsk” Location within 10 km from Ulyanovsk city in the immediate proximity from Novoulyanovsk city. Characteristics of logistics and transport network. Ulyanovsk Distance to the federal highways – 1 km (0.6 mill). Distance to the airport– 15 km (10 mi). Distance to the cargo river port – 3 km (2 mi) . Резиденты Novoulyanovsk Area of the “Globus, LLC” – logistic scomplex. land site 150 ha– 1st stage Corporation “Tekhnonikol” – production of extruded foamed polystyrene. Population Corporation “Tekhnonikol”– production of glass wool. 20.4 thousand people
Kuznetsk Novospasskoye SyzranSyzran Industrial zone “Novospasskoye” Location: Ulyanovsk region, Novospasskoye settlement , from 840 km. to 847 km. of M5 Ural highway. Mineral resources of the Novospasskoye district Area of the land site 300 ha Oil pool. Deposits of kerosene shales. Population of the district Deposits of phosphorites. > 22 thousand people Federal highways Distance to Residents Regional highways • Syzran – 46 km • Kuznetsk– 78 km “Starateli, LLC” (production of dry construction mixes). Railway roads
page 32 Industrial parks DAAZ and UAZ
Functional purpose localization of production of automotive components. Industrial park DAAZ Advantages of investment sites of 840 000 sq. m. “Brownfield” type of industrial parks DAAZ total area of the park . and UAZ: 316 000 sq. m. Location in the immediate vicinity of automobile production area . constructing centers of the country.
Ready premises for localization of production. Industrial park UAZ High availability of power and stable provision with 60 000 sq. m. necessary energy resources. total area of the park . 53 000 sq. m. Availability of trained production staff. production area .
All necessary transport infrastructure on the investment site.
page 33 Advantages of investing into the region
Beneficial economic and geographic Progressive investment legislation system. location. System of tax preferences and benefits. Developed transport infrastructure. Support of investors in the “single window” Qualified labour forces. regime.
High innovation potential. Sites of Greenfield and Brownfield type equipped with engineering and transport Comfortable living conditions. infrastructure.
page 34 «Single window» regime for investors
Support for investment projects at all implementation stages
1. Selection of the best sites and partners for implementing projects in the region. Ulyanovsk Region Organization of contacts with local authorities and Development 2. businesses, assistance in resolving administrative issues. Corporation
3. Provision with relevant and reliable analytical and Ulyanovsk Region background information on the region. Development Corporation functions as a single coordinating center optimizing Organization and support of negotiations and visits. 4. the process of investor’s entry into the region Assistance in completing and approving land, legal and 5. initial permit documentation.
6. Reduction of the time for completing procedures and documentation.
page 35 International cooperation
Finland Norway Sweden Denmark Canada Lithuania Ulyanovsk region Great Britain Germany Netherlands Czech Republic Austria France USA Slovenia Switzerland China Italy Japan
page 36 International cooperation
Forums Exhibitions Aviation Salons
Forum of Russian and Green Week, Le Bourget International European business. International agro Aviation Salon. industrial exhibition.
International economic MAX International forum in St. Petersburg. Logistic China, Logistics, Aviation Salon. Telematics and Transport Exhibition. Farnborough RF Transport International Airshow. International Forum. Salon International de lAgriculture SIA, International AirTransport International investment International Salon. Forum in Ulyanovsk forum in Sochi.
Russian national International forum on exhibition in Paris. nanotechnology.
Hannover Messe, PROEstate International industrial fair. Real Estate Forum.
page 37 Results of investment activity
Investments into the region ($ millions)
220 363 411 691 1 036 1 524 1 552 1 428 1 966 2 244 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
1st place among the regions of PFD
2011 2010 on the index of physical on the growth rates of FDI 1 volume of investments into fixed assets.
page 38 Contact data
We invite to establish long-term and mutually profitable cooperation!
Government of the OJSC “Ulyanovsk Region Development Ulyanovsk region Corporation”
Governor – Chairman of the Government General director Morozov Sergey Ivanovich Ryabov Dmitry Alexandrovich tel. +7 (8422) 41 20 78, 41 29 43 tel. +7 (8422) 44 45 73, 44 48 34 fax +7 (8422) 41 70 20 fax +7 (8422) 44 45 73 e mail: [email protected] e mail: [email protected] http://ulgov.ru http://ulregion.com
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