kaluga region investment profile

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Kaluga region Investment profile 2010

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Kaluga region Investment profile. 2010. Content. Kaluga Region Profile Kaluga Region Development Strategy Advantages for investors. Advantageous geographic location. EU. Russia. Kazakhstan. China. Mongolia. Population density, residents per km ².

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Page 1: Kaluga region Investment profile

Kaluga region Investment profile

2010

Page 2: Kaluga region Investment profile

Kaluga region

Content

• Kaluga Region Profile

• Kaluga Region Development Strategy

• Advantages for investors

Page 3: Kaluga region Investment profile

Kaluga region

~20 mln. residents in 150 km vicinity from Kaluga Region

Russia

ChinaMongolia

Kazakhstan

EU

Advantageous geographic location

Population density, residents per km²

< <

Page 4: Kaluga region Investment profile

Kaluga region

Kaluga region: key facts

Key facts

Population • 1.001M

Main cities • Kaluga–341K res.• Obninsk–105K

res.

Area • 30K km²

Climate • Continental temperate climate– Avg. temp. in

Jul: +18– Avg. temp. in

Jan: -9

Location • Part of Central Federal District

• 70 km from Moscow to Kaluga region border

Natural Resources

• No substantial natural resources

Significant growth of wealth since 2005

Manufacturing and transport – main parts of

GRPStructure of Gross Regional Product,

2009

0

20

40

60

80

100%

GRP

Other

Agriculture

Real Estateoperations

Transport andcom-s

Manufacturing

$5B

Monthly average salary, $

Share of population below poverty line, %

Page 5: Kaluga region Investment profile

Kaluga region

Foreign investments

Foreign investments volume in the Kaluga region, bln. $

0,10,04 0,03 0,02 0,03

0,1

0,4

1,5

1,11,2

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(est)

Page 6: Kaluga region Investment profile

Kaluga region

Industrial parks

Industrial parks key facts Industrial parks location

• Total area for industrial construction – 2 615 hectares

- Allocated area as of June 2009 – 1200 hectares

• Planned amount of new jobs:

26 000

• Planned amount of direct investments till 2012 – 6,5 bln $

• Total Kaluga Region spending for industrial parks development –

330 mln $

• Infrastructure:- natural gas- electric power- water supply- sewage capacity

• 6 mln. tons of freight traffic annually

Kaluga

Obninsk

LemkonPrivate Industrial

Park

Rosva Kaluga-Yug

Grabtsevo

Vorsino

Detchino

A-park

Page 7: Kaluga region Investment profile

Kaluga region7

They’ve already chosen us!

Page 8: Kaluga region Investment profile

Kaluga region

Industrial park Investments Period

Number of industrial parks successful examples

Nestle PurinaPetCare

Vorsino M 25 $ 2005-2009

Pet feed

Samsung Electronics

Vorsino M 237 $ 2009-2010

Household appliances

Volkswagen

Grabtsevo M 750 € 2007-2011

Automobile production

Magna Exterior & Interior Management Grabtsevo M 25 € 2009-

2011

Automobile components production

Volvo Truck

Kaluga-Yug M 92 € 2007-2009

Automobile production

PSA PeugeotCitroen & Mitsubishi Rosva M 470 € 2009-

2011Automobile production

Company Manufacturing

Page 9: Kaluga region Investment profile

Kaluga region

Federal Government highly appreciates Kaluga Region’s economy success

“Kaluga Region is a very good example how to set up new industrial centers, actively implement state-of-the-art technologies .... from scratch”

“There is no doubt that Kaluga is a very good example of collaboration with investors”

“Kaluga Region government make everything possible for investors’ convenience”

Vladimir Putin, Prime Minister of Russian Federation (2009)

Page 10: Kaluga region Investment profile

Kaluga region

Content

• Kaluga Region Profile

• Kaluga Region Development Strategy

• Advantages for investors

Page 11: Kaluga region Investment profile

Kaluga region

The basis of the economic policy of the region: cluster’s forming

Auto cluster Bio-technologies and pharmaceutics

cluster

Nuclear medicine cluster

Creation of the nuclear medicine center

in Obninsk.

Page 12: Kaluga region Investment profile

Kaluga region

The Stages of auto-cluster’s development in Kaluga Region

Distribution

R&D

Components

OEM

• Become №2 automobile manufacturing region in Russia till 2015• Become №1 auto

components cluster in Russia

• Develop network of Research & Development centers with automotive focus

• Set leading in Central Russia training center for professionals with automotive focus

1

2

3

4 • Become major auto components logistics center in Russia

5

Page 13: Kaluga region Investment profile

Kaluga region

Content

• Kaluga Region Profile

• Kaluga Region Development Strategy

• Advantages for investors

Page 14: Kaluga region Investment profile

Kaluga region

There are 5 reasons why to invest in Kaluga Region

Good location and transport infrastructure

Advanced labor market

Proactive philosophy for investors support

Active investments support Policy

Great team of professionals

“Why leading companies invest in Kaluga Region?”

“What gives us confidence in our strategy feasibility?”

1

2

3

4

5

Page 15: Kaluga region Investment profile

Kaluga region

Highways c Container terminals (both active and under construction)

Vorsino Railway station

Obninsk Railway station

Vorotynsk Railway station

Perspektivnaya Railway station

Kaluga Region

Moscow Region

Good location and transport infrastructure

• Well developed highway network- Kiev highway (connection

with Ukraine)- Kaluga highway (connection

with Belarus)- Big Concrete Ring (Moscow

region)

• Well developed railway network- Big Moscow Ring Railway

Road- Railway road between

Moscow and Kiev

• Network of container terminals under active development

• Proximity to Moscow region

• Good connection with Central Federal Area Regions

• Concentrated production facilities in industrial park areas

Railway lines

Kaluga region border Area for container terminal construction

Main logistics centers

Logistic centers Coverage area

Moscow economic region

Page 16: Kaluga region Investment profile

Kaluga region

Advanced labor market

Proximity of Moscow region Developed network of educational institutions

0

4

8

12

1.3M 0

4

8

12

1.0M

0

4

8

12

6.7M

0

4

8

12 10.5M

0

4

8

12

1.6M0

4

8

12

0.8M

0

4

8

12

1.0M

~17 000 000 residents live in adjacent Moscow Region

• In 28 institutes of higher education - 39 000 students

• In 26 specialized secondary education centers - 14 000 students

• Training center for professionals with automotive focus

- ~2 000 professionals get training annually

Population of adjacent to Kaluga regions

Page 17: Kaluga region Investment profile

Kaluga region

Investors support system

No long procedures • Administrative support

No bureaucracy • Solid legislative basis

No restrictions• Freedom in choosing

– No constrains during contractors selection process

No isolation • United project team

No infrastructure risks• Availability of all necessary infrastructure

– all necessary infrastructure connected to the plot

No charges • No hidden and unspecified charges

No middleman • my cell phone: +7 915 898 20 45

Page 18: Kaluga region Investment profile

Kaluga region

Active investments support policy

Tax preferences

0.1-0.3 1

1

0.3-0.5 2

0.5 -1

3

2

1-2 3

>2 4

Scale of investments,

bln. RUR

0% property tax period, years

(2,2% w/o preferences)

15.5% profit tax period, years

(20% w/o preferences)

Resources and approach

• Industrial parks – clear product for investors

• “Step ahead” approach in engineering and logistics infrastructure development

• Support through regional development organizations: Kaluga Region Development Corporation and Agency of Regional Development

• Federal resource: Investment Fund, Vneshekonombank

• «А-Park» - new possibilities for small and medium-sized enterprises of the automotive industry and logistic companies

Page 19: Kaluga region Investment profile

Kaluga region

Contact information

Government Authorities of the Kaluga Region

• Administration of the Governor of the Kaluga RegionTel: +7 4842 778431, Fax: +7 4842 531309Web: http://www.admobl.kaluga.ru

• Kaluga Regional Government Office (Moscow) (Official connections) under the Government of Russian Federation

Tel/fax: +7 499 2416636E-mail: [email protected]

• Regional Development Agency for Kaluga Region (Investment projects) under the Ministry for Economic Development

Tel: +7 4842 762700, Fax: +7 4842 762701 ext. 18E-mail: [email protected]: http://arrko.ru/en/

• Kaluga Region Development Corporation (Industrial parks) under the Ministry for Economic Development

Tel/fax: +7 4842 790410E-mail: [email protected]: http://invest.kaluga.ru/en/