BUSINESS ENVIRONMENT IN RUSSIALeading experts in the Ulyanovsk region – page 6

№6 February 2016

FIRST PLANT IN RUSSIAHempel completes construction – page 3

ULNANOTECHA new stage of development – page 4

BRIDGESTONE TO BEGIN OPERATION IN THE SECOND HALF OF 2016

As of today, all construction operations on the site of the first automobile tire manufacturer in

Russia and the CIS have been completed. “Technological equipment has been

delivered to the site and is currently being installed. Production will commence in the second half of the year,” said Hiromi Tanigawa, General Director of Bridgestone Tire Manufacturing CIS, LLC. “We have many clients who are looking forward to getting Russian-made products from Ulyanovsk. We also have potential customers  – car manufacturers, who are interested in the products we offer.”

Plans are to deliver company products across Russia, and, later, throughout the CIS. The total amount of investments into the project is over RUB 12.5 bln. The enterprise’s output capacity is 2 mln tires a year, which may be increased up to 4 million.

After visiting the enterprise, head of the region Sergey Morozov noted that today the enterprise employs more than 350 people, and subsequently more than 800 local residents, including graduates of Ulyanovsk universities, will work there.

The Governor also presented his award to Mr. Tanigawa. The enterprise received this award for achievements as recognized by the World Organization for Development. The Ulyanovsk region has received a silver medal in the nomination “For contribution to improving the investment climate in the Russian Federation,” a golden medal in the nomination “Investor of the Year” went to Bridgestone Company, and Ulyanovsk Machine Tool Plant, LLC (DMG MORI)

received its award in the nomination “Technological Investor of the Year.”

Representatives of the company said that one of the reasons behind choosing the Ulyanovsk region for the project was availability of talented young people. Most employees of the enterprise are local residents. “I was born and raised here, and got my education here,” said Dmitry Urusov, 30, Deputy Head of Engineering and Technical Support Service. “I have been working here for more than a year. I had previously interned at a similar enterprise in Japan. I am working now on setting up and commissioning manufacturing equipment. I am not planning to go anywhere from the Ulyanovsk region; the work is interesting, and the work conditions are comfortable.”

A FRUITFUL VISIT TO THE CZECH REPUBLIC NEW PARTNERS ARE COMING TO MACHINE-BUILDING CLUSTER OF THE ULYANOVSK REGION

In November 2015 the delegation of the Ulyanovsk region, headed

by Governor Sergey Morozov, traveled to the Czech Republic on business.

During the trip the head of the Region met with Jan Mládek, Minister of Industry and Trade of the Czech Republic, Sergey Kiselev, Ambassador Extraordinary and Plenipotentiary of Russia in the  Czech Republic, and Sergey Stupar, trade representative of Russia in the Czech Republic. After a series of meetings with Czech business people, an agreement was reached to localize a number of enterprises in the Ulyanovsk region.

Governor Sergey Morozov, Milan Julina, Director of TRIMILL machine-building company, and Sergey Vasin, CEO of the Ulyanovsk Region Development Corporation, signed a memorandum of understanding regarding construction in the Ulyanovsk region of a plant which will

produce high-speed processing centers. The enterprise will be located on the territory of the Special Economic Zone. The  project will be implemented in several stages. At the first stage the company will rent a production facility on the territory of the SEZ, and then will build its own facility. The investments in the project will amount to RUB 200 mln.

“The import replacement

program in Russia requires that as of 2016 only 70% of all parts for metal processing machinery can be of foreign origin. We will assist the investor in finding Russian manufacturers of parts that are necessary for the company in the production process,” Sergey Vasin said.

Another agreement was reached with yet another Czech company, which will produce telescopic and cabinet

protection for machinery and ball screw-and-nut arrangements at DMG  MORI supplier park in Zavolzhye industrial park. Investments in the project are assessed at more than EUR 10 mln.

Additionally, during his visit to the Czech Republic Governor Sergey Morozov and Chairman of the Russo-Czech Chamber of Commerce Vladimir Ermakov signed a memorandum of cooperation. According to the document, the region will continue working on partnership projects with the Czech Republic in a variety of directions. The parties intend to cooperate in the sphere of entrepreneurship and international ties in small and mid-sized business, joint promotion of new products, cooperation in the sphere of implementing innovative projects and programs in high technologies, as well as participate in joint events, including trade and economic missions.

Сorresponding changes have been introduced into the Law “On

Development of Investment Activities in the Ulyanovsk region.”

According to the document, implementation of the most significant investment projects has been extended through 2020. According

to the information provided by the regional Ministry of Economic Development, the total value of these projects is at least RUB 3 bln.

Today a total of 27 regional investment programs have been rated as “significant” and 16 as “top priority.” These projects include those by Schaeffler, Jokey Plastik, Hempel, Bridgestone and other companies.

Alexander Smekalin, First Deputy Chairman of the Region’s Government said that the changes in the law were discussed with the regional business community and investment partners. “We understand that in present circumstances we must try and retain the support measures that the state provides and that had been proven successful. The taxes for implemented significant

and priority projects are twice the amount of the privileges we are provided. After the projects reach their full capacity, more than 9000 residents of the city and the region will find new jobs at these enterprises. This will give the Ulyanovsk region the necessary mechanisms to retain its competitiveness on the investment market,” Alexander Smekalin said.

REGION EXTENDS DEADLINE FOR COMPLETION OF SIGNIFICANT INVESTMENT PROJECTS

TRIMILL is a manufacturer of high-speed processing centers, which are intended for processing instruments, press forms and stamps, manufacturing of products for automobile and aircraft industries. The production facilities are located in Zlin and Vsetin. The customers of the company include automotive concerns, such as Škoda, Volkswagen, and Audi.

2 February 2016REGIONAL NEWS

FIRST HEMPEL PLANT IN RUSSIA

С onstruction of the first ever plant of Hem-

pel Company (Denmark) was completed in a fes-tive ceremony in De-cember.

The event was at-tended by Sergey Morozov, Governor of the Ulyanovsk region, and Thomas Winkler, Ambassador Extraordi-nary and Plenipoten-tiary of the Kingdom of Denmark in the Russian Federation.

“I am glad that Danish companies are coming to the Russian market. In this difficult situation we want to assure you that the Danes will remain to

work in Russia. We need concrete examples, the so-called “success sto-ries,” when we can show the companies that have already started working here. Hempel is one ex-ample of such company, a symbol of high quality, compliance with the strict-est standards; a company with the clear vision of business, production and human resource develop-ment. I  have heard much about the Ulyanovsk re-gion, and the favorable re-lations between investors and regional authorities. I  like the ambitiousness of the Ulyanovsk region authorities. Their large-scale work covers all the

sectors of economy. I want to hope that today’s event will become a sort of mag-net that will attract new Danish companies to the region,” Thomas Winkler said. 

The new plant became the 28th Hempel enter-prise in the world, and the first ever in Russia. It is located on the ter-ritory of seven hectares in Zavolzhye industrial park. The total amount of investments into the project will be about EUR 30 mln. After launch, the plant will produce 16 million liters of paint a year. The Ulyanovsk en-terprise will produce lac-quer and paint anti-cor-

rosion coatings for the main market segments of the company: ship repair and construction, infrastructure, oil and gas and mining industry, the energy sector.

“We are happy that we had selected Ulyanovsk for our plant’s new loca-tion because they have well-organized resources and infrastructure, and the central geographic position of the city will help optimize delivery terms to our customers across Russia and other countries of the Eurasian Economic Union. We are very thankful to the gov-ernment of the Ulyanovsk region, who had offered us considerable support throughout the construc-tion process,” said Jesper Bødtkjer, Vice President of Hempel Group of Companies in Europe. 

The plant has been

equipped with cut-ting-edge eco-friendly and safe equipment. Cutting-edge technolo-gies, including dosing systems, high-speed bottling systems, and a robot-operated system of palleting the prod-ucts are being used in the production process. Additionally, the plant utilizes all technologi-cal liquids, which pre-vents soil contamina-tion, as well as gathers the polluted water during firefighting operations. 

At present the plant in Ulyanovsk employs more than 50 people; plans are to expand the number of employees to 100 as the produc-tion volume will grow. Large-scale production is scheduled to start in 2016.

HEMPEL: » 28 plants» 11 research and development centers» more than 150 warehouse facilities worldwide» present in 80 countries» more than 6000 employees» 2015 – centennial year

3 February 2016LAUNCHING A PLANT

ULNANOTECH Nanotech-nology Center in Uly-anovsk will soon have an

additional fourth building for the Center’s future affiliated compa-nies. The investment agreement has been signed at the Business Climate in Russia Forum.

The document was signed by Sergey Vasin, head of the Ulyanovsk Region Development Corporation; Andrey Redkin, CEO of the NanoCenter; Alexander Zakharov, head of the Industrial Park Regional Management Company; Oleg Yakushkin, General Director of

Zavolzhye Technopark, and Mars Arslanov, General Director of ZAO Capital Holding Company.

“Pursuant to the agreement, by mid-2017 the private investor from Tatarstan, Zavolzhye Technopark, will build the fourth building of the nanocenter, which will house labs and production facilities of present and new residents,” Sergey Vasin said.

The new building will be 2500 square meters in area. A total of some 200 employees will work there. The total amount of investments into the project is around RUB 120 mln.

“Innovations and nano-technologies are our future. The main goal of the nanocenter is to support technological entrepreneurship at the early stage of development, as we search for breakthrough technologies and create startups. The fact that in 2 years the technopark was filled with residents to the point that extension was necessary, demonstrates high demand for hi-tech business and science intensive production facilities,” Governor Sergey Morozov said.

A NEW STAGE OF ULNANOTECH DEVELOPMENT

HIGH TECH PARK

UL N A N O T E C H has been awarded the

status of the hi-tech technopark.

The company underwent voluntary certification and has been found fully compliant with the hi-tech standards in Russia and the rest of the world. The certification was carried out by a special commission headed by the Association of Clusters and Technoparks.

This status establishes the criteria to which the technopark must correspond. Federal experts noted that

the nanocenter corresponded to all the normative requirements as established by the methodology and the statutes of the accreditation program.

“We have a very positive impression of the project. Very attractive conditions have been created for the residents, and all the tools are in place to manage innovative projects effectively, working in cooperation, and not separately from each other,” said Mikhail Labudin, Deputy Director of the Association of Clusters and Technoparks.

Andrey Redkin, CEO of the Ulyanovsk NanoCenter said that the nanocenter completed the voluntary accreditation process as part of the development program for its business model. This will allow to study the best practices on the market and use them in the development program.

ASSOCIATION OF CLUSTERS AND TECHNOPARKS:

» Created in 2011.

» Includes more than 40 organizations.

» Member of IASP (the International Association of Science Parks).

ULNANOTECH:

» Opened in 2013.» Investments: RUB 2.1 bln.» Area: 6400 m2.

» Home to some 40 affiliate companies.

» Nanocenter specializations: automobile parts, aviation and space, construction, biotechnologies and molecular genetics.

4 February 2016INNOVATIVE TECHNOLOGIES

A NEW STAGE OF ULNANOTECH DEVELOPMENT

FINNISH WIND ENERGY PARKFortum Company from

Finland intends to build a wind energy park

in the Ulyanovsk region with the output capacity of 35 MW.

A cooperation agreement to that end was signed on December 23 in Moscow by Sergey Morozov, the Governor of the Ulyanovsk region, Sergey Vasin, CEO of Ulyanovsk Region Development Corporation, and Alexander Chuvaev, Executive Vice President of the Fortum Corporation and head of the Russian division of the company.

“Working on the deve-lopment of the regional strategy based on the economy of knowledge and technological entrepreneurship, we focused specifically on development of the alternative energy sector, because it has a future promise. Signing of the agreement today is the first step in this direction. Fortum Company is a reliable partner with extensive experience in producing energy from renewable sources. I am confident that our interaction in this project will be quite productive. In the near future we are going to expand

our cooperation with this

company. The output capacity

of the facility will be further

increased to at least 250 MW.

I will give a corresponding

commission to the region’s

Development Corporation to

carry out a wind monitoring

program across municipalities

of the region to create

additional capacities for

the wind energy sector,”

Sergey Morozov said.

The total amount of

investments into the project

will be about EUR 65  mln.

Construction will begin in 2016

and will be over by 2017.

“Low pollution energy

production has been a key

strategy for Fortum for a long

time already. One of our major

global goals is to increase

investments into renewable

energy sources, first and foremost,

into water, wind and solar

energy generation,” Alexander

Chuvaev said. “This project is

yet another example of concrete

steps we take to develop clean,

intellectual and effective solutions

in the sphere of electrical energy

production. I would like to

compliment Governor Sergey

Morozov and his team for the

support they are giving this

project. When regional authorities

are interested in attracting large

strategic investors, this helps

the region develop and create

new jobs."

The wind energy facility by

Fortum is the first stage toward

development of alternative

energy sources in the region.

ULNANOTECH, an affiliated

company of Ulyanovsk Region

Development Corporation,

cooperates with other nano-

centers or ROSNANO network –

Technospark (Troitsk) and

Sigma (Novosibirsk) to create an

integrated project of renewable

energy, in particular, wind

energy. The next stage of the

project presupposes production

of elements and parts for wind-

generating turbines of mega-

Watt class.

DEVELOPING ALTERNATIVE ENERGY

EXPERT OPINION

Andrey Konechenkov, head of the Committee for Wind Energy of CIS Member States, Vice President of the World Wind Energy Association:

“The wind energy sector is a promising area of development for the entire world as an instrument of solving the climate change problem and using the environmentally friendly energy resources. This sector invests money into the local economy and helps create new jobs.

This sector is only starting to develop in Russia, and today we have two major problems here: firstly, wind energy projects are not tied to hard currency support schemes. The investor must have all the guarantees that invested money will be recouped, which is quite difficult in conditions when exchange rates are not stable. Secondly, Russia has no enterprises which produce wind energy equipment. We must encourage local manufacturers; in turn, this will help minimize the necessary import of equipment and create a new hi-tech production sector.

Russia has excellent potential for wind energy sector development and the new networks can be joined to the Russian energy grid. The Ulyanovsk region serves as a very good example of this development. The first steps the region takes in the wind energy sector open new opportunities for development in this area.”

FORTUM CORPORATION:

» Efficient production of electricity and thermal energy without carbon dioxide emissions

» Main office: Espoo, Finland

» Number of employees: around 8400 people

5 February 2016INNOVATIVE TECHNOLOGIES

O n December 4, at the site of All-Russian Forum ‘‘Business En-

vironment in Russia”, a meet-ing of the Commission for improvement of investment climate, minimizing adminis-trative barriers and develop-ment of small and mid-sized business was held under the leadership of Mikhail Babich, plenipotentiary envoy of the President of Russia in Privolzh-sky Federal District.

The meeting was attended by the Presidential Business Ombudsman Boris Titov, General Director of the Agency of Strategic Initiatives for promotion of new projects Andrey Nikitin, representatives of PFD regions, and federal experts. The meeting discussed the results of the National Investment Climate Rating in constituent regions of the District, the development of business ombudsman offices, and implementation

of roadmaps of the National Entrepreneurship Initiative.

“The Ulyanovsk region is one of top five regions in the ASI rating of investment climate; this means that entrepreneurs assess the investment climate in the region fairly highly. We do not influence the rating in any way. Entrepreneurs form the rating themselves. Survey participants include employees, businesspeople who receive permits, build and

manufacture various products in the region. This is their way of saying they appreciate the work being done by the governor and his team to improve the business climate in the region. This must be an objective instrument, because our ratings are high year after year. We should not rest on laurels, however, because many regions are thinking now about attracting investments and supporting their entrepreneurs,” Andrey Nikitin said.

The Forum also saw the signing of two agreements

regarding implementa-tion of new investment projects in the Ulyanovsk region.

An investment agree-ment with Surskaya Ryba,  LLC presupposes creation of a salmon farm. A recirculating aquaculture system (RAS) will be built in the region to farm salmon. The RAS technology is a cutting-edge fish-farming approach, which is very cost-effective and environmentally friendly. The enterprise will be located at the industrial site in Novospassky District. The investments in the project will exceed RUB 1 bln, and a total of

more than 100 new jobs will be created.

The second agreement concerns investing into a greenhouse project on the territory of the region, signed with Industrial Investments, LLC. The  greenhouse facility will be built in three stages: Stage 1  – at least 24 hectares of greenhouses, Stage 2  – at least 48 hectares, and Stage 3  – at least 24 hectares of greenhouses. The total amount of investments will be over RUB 13 bln. The new facility will create approximately 750 new jobs for region’s residents. The greenhouse facility project will be built in three stages, starting in 2016 and ending in 2021, stage by stage.

ATTRACTIVE INVESTMENT CLIMATE DISCUSSED IN THE ULYANOVSK REGION

NEW INVESTMENT PROJECTS

6 February 2016EVENTS

HILTON GARDEN INN WELCOMES GUESTS

Hilton Garden Inn, a new hotel, opened in a colorful

ceremony in December 2015. In February 2016 the hotel welcomes participants and guests of the 36th Bandy World Championship in Ulyanovsk.

The total area of the hotel is 9287 m2. A total of 175 rooms will be located on 6 floors. The hotel will offer a well-equipped multifunctional conference center with the seating capacity of 210 and two meetings rooms, seating up to 20 people each. A well-equipped workout center is located on the sixth floor of the hotel. The total amount of investments into the project is over RUB 2 bln.

“The last time a large hotel opened downtown (I mean Venets Hotel) was a long time ago, in 1970. Our region is also developing actively, and

we intend to take leading positions not only in Russia but in Europe as well, so therefore we need a very good hotel. And now we have it,” said Governor Sergey Morozov at the ceremony. “Hilton Garden Inn Hotel is an important facility for the economy of the Ulyanovsk region, which will allow to improve its investment and tourism attractiveness. This project will allow us to implement many of our ambitious plans, such as creating a USSR Museum, holding the Bandy World Championship, and taking part in the World Football Cup.”

Vladimir Koshelev, Chairman of the Board of Koshelev Corporation, said that with the opening of the new hotel the Ulyanovsk region has entered the list of cities and capitals all over the world with Hilton

international hotel chain presence. “We like Ulyanovsk, and we appreciate what the region’s governor is doing for the city. We see the projects we hear being mentioned in mass media

implemented in real life. These are real examples of synergy between private investors and the state, which result in great projects being completed,” Mr. Koshelev said.

KOSHELEV CORPORATION

» One of the largest multifunctional construction companies in Russia.

» Own production facilities in the construction sector: a plant of ferrous concrete products, window frame production facility, etc.

» Number of employees – more than 2000.

7 February 2016OPENING CEREMONY

IN THIS ISSUE WE WILL SHARE WITH YOU THE NEWS ON VENUES THAT PROVIDE VARIOUS ENTERTAINMENT OPPORTUNITIES IN ULYANOVSK IN WINTER.

KARTHALLThe largest roofed go-kart track in Russia

Speed, drive, adrenalin, bright emotions and full freedom – this is how the fans of go-kart describe their emotions after each ride. KartHall is open to children and adults 7 days a week. A broad 540 m long track allows 10 to 12 riders participate in each race and compete against each other in speed and driving skills.

This sport and entertainment center is ideal for professional alpine skiers and families with children alike. The center includes two professional slopes 650 m long for alpine skiing and snowboarding, a training track with a belt hoister, a slope for children, snow tubing slopes and a skating rink. The park also offers lessons in alpine skiing.

LENINSKIE GORKI ACTIVE RECREATION PARK

ULYOT AQUAPARKA new entertainment venue for city residents and guests

The aquapark opened in January 2016, its total area is 12500 m2. The park has 10 various amusements for children and adults, including slides,

sea wave imitation pool and thermal zones. Water amusements include 7 slides and 3 pools. Guests can visit a cafe or a sauna, and children will enjoy a playground.

8 February 2016LEISURE