As an “economic crop” the next St Petersburg international economic forum the government of the Rostov region has collected four new industrial enterprises, a national payment instrument, the mechanism of export support and the experience of the Northern capital by hosting major events which in a few years needs to respond to the don echoes of the football Cup.
“Rostov region is enough for us young and we love to work here”
The financial results of SPIEF-2016 for the don economy in the background brought last year in the Rostov region investment in 291 billion look, maybe not so impressive – of 7.23 billion. However, how you look at it.
On the one hand, the numbers are modest. On the other, last year’s overall decline in industrial production in Russia and the depreciation of the national currency had no effect on the don industry, showing growth in 2015 by 1.5 times. Industry-forming enterprise successfully overcome the crisis phenomena and even in spite of Western sanctions, is worthy support its export component. None of the iconic players of the don industry has not lost its market share, the more left the “playing field”.
While the Northern forum added in the industrial Treasury of the don four new businesses.
First and foremost it should be noted the Memorandum of cooperation of regional authorities with the leader of the Russian market of paper packaging Segezha Group (enters in AFK “System”), which implements in the city of Salsk the construction of a plant for the production of paper bags. On the basis of the old Soviet era enterprises created a modern multipurpose plant for the manufacture of packaging for building materials and food products. In the first line the investor has already invested about 1.5 billion rubles. In the next two years it is planned to establish two more production lines, doubling the investment and the plant capacity from 90 to 200 million bags per year.
“Rostov region is enough for us young and we love to work here, – said the President of the Segezha Group Sergey Pomelov. What would you like to note: at all stages of the project development of the Rostov oblast is a reliable partner, we have here all the conditions for investors”.
The construction of the plant Segezha Group included in the list of “100 gubernatorial projects”, which given a particular status from the don authorities.
Another major Federal player – the company “AquaLife” (the manufacturer “Drinks from Chernogolovka”) – signed an agreement on construction of a plant for the production of soft drinks and distribution center in Azov with a total value of 1 billion rubles.
“Drinks from Chernogolovka” is a leader in the domestic soft drinks market, – said General Director of managing company “Akvalajf” Alex Thursdays. – Accordingly, the capacity we plan to increase in the run up to 500 million liters per year. We plan this site to cover the needs of the Rostov region, just South of the region and also to ship products for export. Today we export to almost 20 countries. So for us, the Rostov region-effective from the perspective of the development of the company.
Azov location “AquaLife” is quite revealing. This is not the first work of the enterprise world’s leading players – Coca Cola and Pepsi Cola. It turns out that the basics becomes a kind of “soft clustering” of the South of Russia.
Another important enterprise, due to the SPIEF will appear in Volgodonsk. Company ekostroy-don” will begin construction of Volgodonsk inter-municipal environmental complex waste management. The don authorities have spent many years talking about the need to solve the problem of recycling of solid waste and the creation of new polygons, but really only until this company is going to invest in this order 961,7 million.
“This is one of eight MAAC, which must be created before the end of 2018 in the Rostov region – said the Governor Vasily Golubev. – I can say that perhaps this is the most advanced project from the point of view of the timing of its implementation. What is very important? To some extent this is an example for those who are doing the same. On the other hand, there is the position of the city administration, the particular business, the desire to implement this project. It is possible that other cities – Rostov, Taganrog, Novocherkassk, Novoshakhtinsk – this is an example of the organization process.”
Another 2.27 billion rubles in the economy of the don intends to invest the company “Comtech-don, signed the agreement on realization of project of construction of a plant for the production of a wide range of brick and large-format porous blocks with a capacity of 100 million conventional bricks per year. He will be one of the residents in three areas of advanced development (TOR) “Gukovo”.
“The reasons for choosing the Rostov region some – said General Director of the company Alexey Fitingof. The most important is that large blocks cannot be produced in the Rostov region. It is a modern material, which we import. This is an internal import from St. Petersburg, from other neighboring areas…First, we looked at another site, but in the end chose Gukovo, because it is very convenient conditions for investors. Most importantly, there is the necessary infrastructure. It is not necessary to build, i.e. we can only build a factory and work what we are already ready. This year we are starting the construction. Now, the preparation of project documentation, it was delayed because of the relocation. And we will proceed to build. The project implementation period is approximately 16 months.
The path of peace
At the SPIEF, the don authorities have signed several important agreements. First of all, a tripartite agreement on cooperation in the field of information and payment services between the government of the Rostov region, “the National system of payment cards and the Bank “Center-invest”. It concerned the long-standing issues introduction in the region of plastic cards of the national payment system “World”, designed in the future to replace the existing card for foreign players, the discontinuation of which Russia blackmailed in the beginning of the “sanctions war”.
Now the domestic plastic card will move on the territory of the don along with created a “Card of the inhabitant of the Rostov region”.
“We are very pleased to know that the area is prepared in that sense is quite seriously, and makes efforts to ensure that such services which are directed to citizens, so they have a convenient functional tools not only payment, but also a social orientation, – admitted the company’s CEO nvqs Vladimir Komlev. Thus will be realized the urgent needs of citizens, such as convenient transport payment services, social, identity – all this technologically in conjunction with a leading regional Bank “Center-invest” with the government, of course, we will implement”.
A pilot project on issuing and acquiring of payment cards “the World” that contains the functionality of the card of a resident of a region, calculated for three years. The parties have already begun joint development of the road map project.
It is possible that in the next few years these cards will pay domestic exporters. Just to stimulate their activities was signed in Saint Petersburg a cooperation agreement with the Russian export centre” which will contribute to the promotion of educational programs for regional exporters.
“Rostov region is traditionally the active participant of foreign economic activity. By volumes of foreign trade turnover, we are among the leaders of the southern Federal district. The results of the year 2015, the foreign trade turnover of the Rostov region amounted to nearly 6.5 billion US dollars, including export – 4,492 billion, import – 1,988 billion compared to 2014, the turnover decreased, therefore, it is important to support our exporters. And together with the “export center” we agreed to cooperate in this sphere”, – said Vasily Golubev.
Another agreement concerns the relationship of the Northern and southern capitals in different industries. Including in hosting major international forums. The plan for the years 2016-2020 programmes in 15 areas of cooperation, including industry, investment, trade and economic relations of nature management and environmental protection, architecture and urban planning, health, education, culture, tourism, etc. St. Petersburg authorities with the don will share his experience of preparing for major international events. In both Metropolitan areas is currently being completed stadiums for the 2018 world Cup – the event of the century in Russia.
On your walk
The inflow of investments from a variety of forum funds in the economy of the don would not have been possible without the presence in the region favourable investment climate. This was facilitated by the incentive of the state program of import substitution.
More than 6 billion rubles was received in the past year the enterprises of the Rostov region from budgets of all levels on this line. That allowed them to almost completely cover the needs of the residents of the don in basic food products, consumer goods, components for industry, informed in a significant number of imported from abroad.
The momentum of the regional economy was due to leaching from the market of foreign producers positively affected the growth of the don industry.
In the words of the Governor of Rostov region Vasily Golubev, the region is in a good dynamics and is able to reduce its dependence on import without losing the competitiveness and quality of products.” By the end of 2015, the Rostov region, growth in industrial production was the first in Russia, bringing the industrial production index to 154,6 percent amid a nationwide fall. The gross regional product reached 1,135 trillion rubles.
Another important factor, which we are proud of the regional authorities, was the fact that during the crisis no one said a project in the Rostov region the investor is here are gone. The last five years investments in the regional economy only grew, reaching last year 287,4 billion (17 billion rubles more than in the previous year) with the prospect of bringing this indicator by 2020 to 0.5 trillion rubles. The mere holding of the world championship on football in 2018 should result in economy of the don up to 90 billion rubles.
Against this background, the international Agency Fitch Ratings has assigned the Rostov region long-term ratings in foreign and national currency “BB-“, short-term foreign currency rating at ‘ B ‘and national long-term rating’ A+(rus)’. The long-term rating forecast is “Stable”.
It is particularly gratifying that the growth of economic indicators currently, there is due to those segments, where prior to the introduction of Western sanctions, the region has substantially lagged behind. Currently, the focus of the don authorities are doing to promote investment in sectors where industrial production still has not reached the desired growth rate: agricultural processing, canned food and light industry, growing vegetables in greenhouses, creation of pedigree breeding, development of dairy livestock, etc.
Together with the Ministry of industry and trade were identified 41 investment projects in 11 technology areas, the implementation of which will make a real of import substitution in various fields.
Currently, 22 of the don industrial enterprises included in the register of organizations that have a significant impact on industry and trade of Russia. This allowed to date, eight companies in the region to receive subsidies on loans for working capital for a total amount of 321 million rubles.
Rostov oblast was among the first to sign a cooperation agreement with the industrial development Fund. This has helped to attract to the economy of about 400 million rubles from the Fund to start last year the implementation of three important import-substitution projects. “Rostselmash” has started serial production of the new harvester RSM 161 corresponding to the technical level of modern international standards, environmental and ergonomic requirements due to the introduction of more than twenty patented innovative solutions to Rostov designers.
The Novocherkassk NEVZ started its own production of generators and electric motors for locomotives that have previously been supplied from Ukraine.
In the summer of 2015 in the Mines “BTK Group” for once Europe’s largest cotton mill started production high-tech fabrics from synthetic fibers, which is unique not yet exist in Russia. This should give a new impetus to the development of light industry, which typically employs the greatest number of workers.
To date, 16 applications the leading companies in the region are considered by the industry development Fund, and the total amount planned to attract public funds is 3,763 billion.
In this case the manufacturers themselves are asking the regional authorities to assist in the promotion of import-substituting products on the market. So, the leadership of Volgodonsk “Atommash” lamented the fact that their products were not used in the implementation of the project “Nord stream”, and the necessary components purchased abroad. As emphasized in the regional industry Ministry, today Gazprom has already approved the quality of components of the “Atommash” to participate in tenders for the realization of such ambitious projects as the Nord stream – 2″ and “Power of Siberia”.
In the region there is a “consumer patriotism,” when area residents choose products grown and processed on the spot. In particular, over the past year, retail network, by the results of the procurement of the sessions found a place on their shelves for 157 new positions of goods produced in the Rostov region.
However, in the regional industry and today is quite problematic segments that require the intensification of efforts towards import substitution. So, with a record harvest of grain in Rostov region more than 9 million tonnes on the spot not processed more than 1 million tons, enough capacity for the cultivation of greenhouse vegetables, which are traditionally imported from abroad, do not have enough canning and dairy processing plants.
According to the Governor, require special attention for the processing industry, agricultural machinery, machine tools.
“We will analyze the situation and provide support, and if necessary – to cooperate with Federal agencies if they are issues at the Federal level”, – said Vasily Golubev.
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