Yaroslavl region INVESTMENT IN PRODUCTION DEVELOPMENT: LEADING INDUSTRIES CONTENTS The Yaroslavl region 01 The Yaroslavl region: general information 5 02 The Yaroslavl region: economic potential 7 The Yaroslavl region: leading industries 8 03 Leading industries: prospective sectors for localization 04 and technology partnership in the region 11 Ship building and marine equipment 12 Power engineering, electrical and cable industries 16 Engine building 20 Chemical engineering complex 22 CLUSTERS Production of road building and municipal machinery 26 Personnel training and education 30 05 Investment in production development 35 06 Prepared investment projects 35 Investor supporting measures 40 The government of the Yaroslavl region provides facilities for development of real economy industry sectors and for implementation of investment projects focusing on improving industrial competitiveness and export potential. Strengthening cooperation with large state corporations ensures intensive development of high-tech manufacture, innovative ventures and region’s economic development. In recent years the Yaroslavl region has demonstrated a steady industrial production growth; in the first quarter of 2019 industrial production index was almost 123% (102% for Russia). Pharmaceutical cluster enterprises that constantly expand participating companies significantly contribute to the industrial development. Large projects are being implemented in the Yaroslavl region by Takeda Pharmaceuticals, R-Farm, NT Pharma, Vita Pharma and Teva companies. Drug quality test laboratory of the Federal Service for Surveillance in Healthcare is to be put in operation in 2019. Last year production of the Ninlaro innovative drug began, promoting Russian pharmaceutical industry to a fundamentally new development level. Previously such drugs were released into civil circulation only in five countries (Japan, France, USA, Germany, and Austria). Russia became Dmitry Yurievich the sixth. Besins Healthcare plant will begin operations in June 2019. It will produce Utrogestan included in the All-Russian Vital Medicines List. In the first half of 2019 there are plans to open MIRONOV Pharmoslavl pharmaceutical factory for production of active pharmaceutical ingredients. Governor The regional government is expanding cooperation with large state corporations and holding of the Yaroslavl Region companies. In 2018 space modules assembly department was opened at the Yaroslavl Radio Plant. We are starting to establish medical equipment cluster jointly with the Rostec Corporation. In 2020 the first Russian production of medical needles will be launched. In addition to it, intelligent innovation cluster of digital networks will be created, and smart electricity meters production project will be implemented. In general, investment portfolio of the region includes more than a hundred projects amounting to a total over 200 billion rubles. Three areas of priority development have been established in the region – in towns of Rostov, Tutaev and Gavrilov Yam. Here, investors are granted property, profit and land tax relief and also have reduced social charges. The Yaroslavl region has all prerequisites for further economic advanced development. We are ready to support and consolidate the dialogue of science, government and business regarding innovative projects development, to elaborate joint solutions for development of prospective Russian and export markets. 2 The Yaroslavl region is one of the main Russian economic centers. Regional enterprises manufacture aircraft and diesel engines, electrical equipment and sophisticated instruments, build sea and river vessels, produce petroleum derivatives, paint materials, and medicines. There are over 3 thousand enterprises including more than 270 large ones in the Yaroslavl region. The leading regional industry is machine engineering. Autodiesel Yaroslavl Motor Plant presented its new development, a Euro 6 environmental standard diesel engine with main emphasis on emissions reduction at IAA – 2018, the largest world exhibition of commercial vehicles held in Hanover. PJSC UCE-Saturn is the main designer and manufacturer of engines for civil and military aviation. The company has full high-tech manufacturing cycle of upgraded gas turbine engine for driving electric generators in assembly with high capacity power plants. Yaroslavl region factories are among most advanced in all Russian industrial sectors and some of them are entirely unique. Dmitry Aleksandrovich STEPANENKO The construction of Besins Healthcare plant is completed at Novoselki Industrial Park. The factory will produce Utrogestan medicine. At the initial stage 12 jobs will be created due to the focus Head of the Yaroslavl Region on application of high-tech modern equipment that does not require human intervention Government in manufacturing process. The region is confidently moving forward within a framework of key national economic trends. Large-scale industrial investment projects of national importance are being implemented in the territory of the region. As part of competency development in space tool engineering PJSC Yaroslavl Radio Plant delivered an investment project for industrial processes launching for assembling payload modules of prospective spacecraft. OLIMP 2000/213, an ophthalmic laser refractive unit project is being developed at the Rybinsk Tool Engineering Plant. This mobile system may be used not just for laser vision correction but also for glaucoma treatment. The unit is one-and-only model in Russia, Japan and the USA. The Russian Paints company certified aircraft paints production and launched a manufacture of coating complex for complete painting of airplanes bodies and parts. We will continue to increase industrial, investment and pharmaceutical potential of the region at prescribed pace. 3 Vologda region to St. Petersburg Area: 36.2 thousand km2 to Arkhangelsk Population: 1.27 million people and Vologda Economically active population: 50.1% Poshekhonye Main cities: Rybinsk Prechistoye Lubim reservoir Yaroslavl, Rybinsk, Tutaev, Pereslavl Zalessky, Uglich, Rostov Breytovo Danilov The region borders on: Kostroma Rybinsk Tver, Vologda, Kostroma, region Ivanovo, Vladimir, Moscow N. Nekouz regions Tutaev By car: Myshkin Nekrasovskoye 272 km to Moscow, to St. Petersburg to Kostroma M-8 Federal motor road Yaroslavl “Kholmogory” Uglich By train: 3.2 hours to Moscow Tver Borisoglebskiy By plane: region Gavrilov-Yam international airport to N. Novgorod "Yaroslavl" Rostov to Tver By ship: Ivanovo 560 km to Moscow region River ports: Pereslavl Zalessky Yaroslavl, Rybinsk and Uglich, passenger and cargo transportation to Moscow 4 Moscow region to Moscow 01 Yaroslavl Yaroslavl The Yaroslavl region:generalinformation The Yaroslavl Moscow 400 300 650 St. Petersburg St. Vologda Vladimir Ivanovo Kostroma Nizhny Novgorod radius ofYaroslavl living withina300-km 25 millionpeople centres inthearea centres there are25regional radius ofYaroslavl; living withina650-km 50 millionpeople 12.3 Moscow Yaroslavl 0 Kostroma 80 Ivanovo 110 Vologda 200 Distance between Yaroslavl andbigcities Yaroslavl between Distance Vladimir 230 Moscow 270 5.2 St. Petersburg N. Novgorod 390 Population, millionpeople Population, (by motor transport), km motor (by 1.3 N. Novgorod 0.4 Vladimir 0.4 Ivanovo 0.3 Vologda 0.3 Kostroma St. Petersburg 800 5 © Grigoriy Yaa I [email protected] 6 02 The Yaroslavl region: economic potential Economy Industry The Most Competitive Regional Sectors 510.6 billion rubles 3 308 enterprises MACHINERY CONSTRUCTION, MACHINE-TOOL INDUSTRY, gross regional 276 out of which are big PRODUCTION OF FOOD PROCESSING EQUIPMENT product (2017) and medium-sized enterprises Production shipment volume: 170 billion rubles 33 786.5 rubles more than 40% of tax income Developed vehicle part production sector, including average salary into the region’s engines, aircraft engines, gas turbines, ships, road in the region consolidated budget machinery, electric equipment 54 470 rubles 157.4 thousand people CHEMICAL INDUSTRY, PRODUCTION OF ARTICLES average salary in the Central the average annual number AND CHEMICAL RAW MATERIALS Federal district (2018) of sta employed in industrial production Production shipment volume: 122 billion rubles 71.4 years A big refinery, branched gas and oil pipeline network; average Industrial production Demand for raw materials coming from tyre and paint life expectancy is on the first position production 33% of the gross regional product PHARMACEUTICAL INDUSTRY, INNOVATION MEDICINE AND MEDICAL PRODUCT Industrial production index Production shipment volume: 12 billion rubles The only full-cycle pharmaceutical cluster 121.2 in the Russian Federation (including field sta % 113.6 management system, drugs and pharmaceutical Yaroslavl substances production, development of production 1 07. 3 106.5 region 104.6 105.6 technologies, clinical and pre-clinical drug trials ELECTRONICS, IT AND BUSINESS-RELATED SERVICES 101.7 101.3 101 102.9 102.6 Russian Railway connection to Moscow - travel time is 3 hours Federation 96.6 the dierence in salary is 2.5 times Demand for IT infrastructure coming from industry, 2014 2015 2016 2017 2018 2019 / January-February availability of qualified sta 7 03 The Yaroslavl region: leading industries Region’s largest industrial enterprises TRANSPORT VEHICLES, ELECTRIC, ELECTRONIC CHEMICAL AND PETROCHEMICAL MACHINERY AND EQUIPMENT AND OPTICAL EQUIPMENT PRODUCTION, PLASTIC AND RUBBER PRODUCTION PRODUCTION GOODS PRODUCTION UEC-Saturn, PJSC "Rybinsk instrument making