2017 Results: SEZ “Togliatti” Demonstrates Effectiveness Again
Published: 08.02.2018 in 11:45 Views: 2400
Management company of Special Economic Zone “Togliatti” summed up the results for 2017. The annual final report reflecting the project’s achievements over the year was published on the website (http://oeztlt.ru/uploads/files/otchet2017.pdf). Most important, SEZ “Togliatti” complied with the basic efficiency indicators set by the RF Government. Sites are evaluated against the criteria, including investor participation, job creation, investment and revenue of their residents, etc.
“Industrial and labor glory of Togliatti city is a point of pride for the whole country and every resident of the Samara region. Ambitious and vigorous people live here. Our task is to provide favorable conditions for economic growth of the territory and create jobs,” Dmitriy Azarov said, Interim Governor of the Samara region. “As one of the largest investment sites in the region, Togliatti SEZ plays an important role in the process. The Samara region Government is interested in the success of the zone and is ready to provide full support to your strategic initiatives.”
Year 2017 was full of events, including two factories’ launch. In August, LLC “Ozon Farm” pharmaceutical production started and LLC “Togliatti Paper Mill” was launched in test mode for waste paper recycling and paper and cardboard production. Consequently, the eighth year of SEZ “Togliatti” project is starting with eight operating factories.
In 2017, the number of residents in the SEZ increased to 20 companies and their investment commitment amounted to 23.7 billion rubles. It was decided to approve two new projects on the site: laminate production (LLC PC “Alternative”) and substances and ready-made drug production (LLC “Mabscale”). The former is to be launched in 2020, the latter – in 2024. Russian investors initiated both projects aimed at import substitution.
Another significant achievement of 2017 is the second stage completion in the SEZ infrastructure construction. The total SEZ area has more than doubled (up to 427 hectares) so far, which significantly enhances the project’s potential to attract large companies requiring high energy supply.
In 2017, investments in SEZ “Togliatti” amounted to 18.3 billion rubles (62% private investments). Therefore, with regard to the infrastructure financing, today we have 1 ruble from government sources against 1.6 rubles from private investment. Moreover, 15% (more than 1 billion rubles) of the government investment has already returned to the state in the form of taxes and other payments in the course of the residents’ activity.
As the main result of the year, Togliatti SEZ met the efficiency targets set by the Russian Government. According to forecasted estimates, in 2017, the aggregate estimated efficiency exceeded 90% meeting the “efficient functioning” criterion.
During the year, SEZ “Togliatti” appeared in three Russian and international major ratings. fDI Magazine mentioned the site in its SEZ review; Expert Magazine included the zone in its investment attractiveness rating of industrial parks and special economic zones; and finally the Russian Ministry of Economic Development together with Technology Parks and Clusters Association included SEZ “Togliatti” in the I National Rating of Special Economic Zones.
“In comparison to other greenfield sites in Russia, special economic zones offer the most favorable conditions. Their aim is to attract Russian and foreign direct investment to regional economies, establish new high-tech industries and promote import substitution. Today, 25 special economic zones operate in Russia. Togliatti SEZ is among the most efficient sites. It has always shown good results. The dynamics demonstrated suggests a great future for this project,” Elmira Akhmeeva said, Deputy Director of the Regional Development Department in the Russian Ministry of Economic Development.
Some of the main tasks for 2018: attracting investors and enhancing the emerging industrial areas on the site, developing the maintenance service and providing services to the residents, working on such major infrastructure projects as construction of the customs area and railway to the SEZ territory.
“Of course, we cannot accomplish these challenging tasks on our own. We hope to receive further support from the Russian Ministry of Economic Development and the Samara Region Government. We managed to achieve high results thanks to our close cooperation from the very beginning of Togliatti SEZ project implementation. Undoubtedly, further well-coordinated work of all the participants will increase Togliatti SEZ investment attractiveness and assure social and economic development of the Samara region,” Sergei Fedorov said, CEO of JSC “SEZ “Togliatti”.