special economic zone 2018 processed foods for mcdonald’s 17.6 mln usd investment volume huhtamaki...

SPECIAL ECONOMIC ZONE 2018

KAZAN YELABUGA

REPUBLIC OF TATARSTAN

THE REPUBLIC OF TATARSTAN IS ONE OF THE MOST ECONOMICALLY DEVELOPED REGIONS

The Special economic industrial zone“Alabuga“ was created on December21 st, 2005 in the Republic of Tatarstan

The center of the largestindustrial region 800 kmeast of Moscow

68 000 KM2

3.89 MLN

38.7

36.3

Territory

Population

GRP

Industrial output BLN USD

BLN USD

IN THE RUSSIAN FEDERATION

АSI1 PLACE

AGENCYFOR STRATEGICINITIATIVES

Republic of Tatarstan - in Russian Federationinvestment climate national ranking

Agency for strategic Initiatives,2015, 2016, 2017

SEZ “ALABUGA“provides an excellent set of conditions for investors who intendto establish new production in Russia

Located in one of the biggestindustrial center of Russia

Low cost land plots

Attractive tax andcustoms preferences

Developed industrialinfrastructure

Strong governmentalsupport

Decreased bureaucracy

Proven track record –many global companieshave already establishedproduction in the SEZ

INVESTMENT INCENTIVESAND PREFERENCES(for 10 years since tax base introduction)

TAX RATE FORNON-RESIDENTS

TAX RATE FORSEZ RESIDENTS

Property tax

Land tax

Transport tax*

2.2%

1.5%

0.1-4$

0%

0%

0$*tax rate per 1 hp

CORPORATE INCOME TAX(paid since the first profit)



First 5 years

Second 5 years

Till 2055

20%

20%

20%

2%

7%

15.5%

PERIOD

INSURANCE CONTRIBUTIONSFor residents, carrying out innovation activities



2011-2017

2018

2019

30%

34%

34%

14%

21%

28%

YEAR

SEZ “Alabuga“Import equipment

0%VATIMPORT DUTY

Russian FederationForeign countries

FREE CUSTOMSZONE

$2.67bln USD

$910mln USD

2018 2023

Investments in infrastructure until2023 will rise up to $2.67 bln USDmore than $910 mln USDhas already been invested

CUSTOMSINFRASTRUCTURE

BUSINESSINFRASTRUCTURE

SOCIALINFRASTRUCTURE

INDUSTRIAL INFRASTRUCTURE

INFRASTRUCTURESEZ “ALABUGA”

Railroads

Inner-site roads

Gas

Electricity

Heating

Water

Storm sewage

Drainage

Sewerage

IP Phone

High-speed Internet

INDUSTRIAL INFRASTRUCTURELand plots with an access to:

FREE CONNECTIONTO UTILITY LINESconnection cost to electricity lines:

MOSCOW– $ 500 000 USD per 1 MW

TATARSTAN– $ 100 000 USD per 1 MW

SEZ «ALABUGA» – $ 0 USD per 1 MW

Cost of connection per 1MW

RENT AND PURCHASE

10ha

10ha

$ 5 000 USD per year

$ 15 000 USD

land plot rent at average: $ 0.05 USD per 1 m2 /year

land plot purchase at average: $ 0.15 USD per 1 m 2

LAND PLOT

SEZ“ALABUGA“

READY INDUSTRIALPREMISES ON THE TERRITORYOF THE

А PLUS PARK ALABUGAIndustrial park

36 Hа 186 000 sq.m

200 000 sq.m

land plot area production-warehousefacilities

total areaof the complex

14 000 sq.mAdministrativebuildings

4buildings

Readiness2019

Readiness2020

Readiness16 000 m2 — 3rd Q. 2015 38 640 m2 — 2nd Q. 201938 640 m2 — 2nd Q. 2020

Current statusunder construction

116 000 m2

238 640 m2

338 640 m2

4100 000 m2

А PLUS PARK ALABUGADevelopment stages

SYNERGYIndustrial park

24 500 sq.mRental space

RELUCTANT TO INVESTIN CONSTRUCTION?

Alabuga Developmentbuilds for you

Stock steel production

Customs post operates only for the SEZ “Аlabuga“residents

99% E-declaration

Customs clearancewithin 3 hours

СUSTOMS INFRASTRUCTURE

BUSINESS INFRASTRUCTURE

BUSINESS INFRASTRUCTUREВ+ CLASS OFFICE CENTRE WITH ALL THE NECESSARY SERVICES NEEDEDFOR EVERYDAY WORK:

Office premises

Conference halls

Meeting rooms

Exhibition hall

Canteen-restaurant

Insurance companies

Customs brokers

Gym

a day to Moscow and back

FLIGHTS

Flight time Drivefrom airport

40minutes1 h 30minutes

Mamadysh

Kazan200km 286km

Ufa

NaberezhnyeChelny

Yelabuga

Mendeleevsk

Аlabuga

170kmChistopol

Nizhnekamsk

“Begishevo”airport

Аlabuga-2

M7

M7

KAMAINDUSTRIALCENTRE

1 000 000PEOPLE

THE WORKFORCE(Naberezhnye Chelny, Nizhnekamsk,Yelabuga, Mendeleevsk)

29 UNIVERSITIES AND INSTITUTES

28 COLLEGES

20 200 NEW SPECIALISTS

BLUE COLLARS

WHITE COLLARS

$ 400 USD $ 600 USDThe level of average wage in Kazan is 45%to Moscow level (according to PWC research)

EVERY YEAR IN KAMACLUSTER GRADUATE

TECHNICALEMPLOYEES

FOR SEZ "ALABUGA"

9out of15Russian largest citiesare located within1000 km area

Moscow

Ekaterinburg

Nizhny Novgorod

UfaVoronezh Samara

KazanPerm

ChelyabinskAlabuga

1000 km

SALESMARKET

Moscow

Belarus

Ukraine

Turkey

Iran

Uzbekistan

Kazakhstan

China

Yekaterinburg

Perm

1 073 km

460 km

794 km

1 809 km

3 005 km

6 500 km

3 500 km

3 400 km

2 041 km

1 844 km

SEZ“Аlabuga”

EU

CARGO TRANSPORTATION SCHEMETIKHONOVOstation

SEZ “ALABUGA”

NABEREZHNYE CHELNY

Nizhnekamsk

KazanAMURBAY

VladivostokМОСКВА

БАЛТИЙСКОЕМОРЕ

Ust-luga

Saint-Petersburg

Petrozavodsk

Novorossiisk

1763 km

1861 km 7746 km

2219 km

Novorossiysk - st. TikhonovoSt. Petersburg - Art. TikhonovoUst-Luga - Art. TikhonovoVladivostok - Art. Tikhonovo

1 580 USD1 240 USD1 330 USD3 460 USD

Prices include cost platformand container rent

BLACK SEA

Novorossiysk – Naberezhnye ChelnySt. Petersburg - Naberezhnye ChelnyUst-Luga - Naberezhnye Chelny

2715 USD2120 USD2140 USD

Prices don’t include costof container rent

Free zones of the year 2017

WINNER:EUROPE 2015, 2016, 2017

LARGE TENANTS

HIGHLY COMMENDED:GLOBAL 2016, 2017

LARGE TENANTS

4 000HA3

2

1

MAP OF THE SEZ “ALABUGA”3rd stage

1st stage

2nd stage

RESIDENTS

FORD SOLLERS Production of LCV Ford Transit,SUV Ford Explorer, Ford Kuga,gasoline engines

Production capacity

85 000vehicles per year

185 000engines per year

772.7mln USD

Investment volume

AIR LIQUIDEALABUGAProduction of technical gases(oxygen, nitrogen, hydrogen-oxygenmixture)

80mln m3 per year

54.4mln USD

Production capacity Investment volume

ROCKWOOLProduction of firesafe insulationmaterials 110 000

tons per year173mln USD


P-D TATNEFTProduction of fiberglass andfiberglass-based goods 24 195

tons per year158.4mln USD


POLYMATIZProduction of nonwoven fabric andother polymer goods 17 000



SARIAProduction of meat-bone flourand technical fat 24 500



KASTAMONUProduction of medium densityfiberboard and MDF – based goods 837 200

m3 per year487.6mln USD


HAYATProduction of household andsanitary paper products 140 000



Production of float glass, mirrorsand coated glass

250 000tons per yearglass

210.1mln USD

4.5mln m2 per yearmirrors

4.5mln m2 per yearcoated glass

SISECAMSAINT-GOBAIN


SISECAMProduction of automotive glass

6.4mln sets per year

113.2mln USD


ALABUGA-FIBER Production of carbon fiber 1 500



INTERSKOLProduction of electrical tools

1.27mln units per year

63.4mln USD


RMAProduction of steel ball valvesfor oil and gas extraction industry 11 000

units of productper year

56mln USD


ARMSTRONGProduction of mineral fiber ceiling 22

mln m2 per year101.2mln USD


COSKUNOZ Production of car body parts 6

mln units per year74mln USD


3МProduction of adhesive tapes,industrial adhesives, abrasivematerials, glass microspheres 256

corrosionprotection agentskl per year

62.3mln USD


9 600tons per year

32.6mln USD

Production capacity Investment volumeBELAYA DACHA Processing of vegetable products

HAVI LOGISTICSStorage and processingof processed foods for McDonald’s 17.6

mln USD

Investment volume

HUHTAMAKIProduction of polyethylene and polypropylene plastic pipes 641

mln units per year 7.4mln USD


DIZAYN-RUS Production of polyethylene and polypropylene plastic pipes 23 300



KORIBProduction of car batteries 1.5

mln car batteries24.7mln USD


DRYLOCKTECHNOLOGIES Production of hygienic products

433mln pieces per year

31.6mln USD


22 250tons per year

56.5mln USD

Production capacity Investment volumeDANAFLEX-ALABUGAProduction of flexible packaging materials

15.8 mln liters per year

55.4mln USD

Production capacity Investment volumeAVGUST-ALABUGAProduction of crop protection agents

SEZ “ALABUGA” MEDIUM-TERM STRATEGY Approximately for January 1, 2018: To-be in 2023:

56 120Resident-companies Residents-companies

$ 4.6 BLN USD $ 12 BLN USDTotal resident investments Investment volume

6 327 16 000Jobs Jobs

$ 846.3 MLN USD of governmental investments

SOCIALINFRASTRUCTURE

INTERNATIONALDIPLOMASCHOOL10 classes for 10 children

BOARDING SCHOOL20 rooms for 40 children

NEARBY CITY-NABEREZHNYE CHELNY20 KMaway from the SEZ “Alabuga”,population of

522 000 PEOPLE

NEARBY TOWN -YELABUGA10 KMaway from the SEZ “Alabuga”, population of

84 000 PEOPLE

THANK YOUFOR YOUR KINDATTENTION!

+7 (85557) 5-90-30

[email protected]

www.alabuga.ru

THE SEZ “АLABUGA”in the structure of special economic zones (out of 24 zones)

60%32%42%

$ 5.4 BLN USD.of the revenues

$ 0.22 BLN USDof tax payments (without VAT)

$ 1.99 BLN USDof residents’ investments

RESIDENT TO - BE STEPS3 MONTHS

1. 2. 3. 4.Registrationof a legal entity,preparationof a business-planand foundationdocuments

Projectpresentationfor SupervisoryBoard of theSEZ «Alabugа»

ProjectPresentationfor Expert Council(Кazan)

(Kazan)

Agreementsigning andgettingthe residentcertificate

SERVICESExploitation:

-heat supply

-electricity supply

-water supply

-drainage

-waste management, dumping, payments on environmental impact

-maintenance of fire extinguishing systems and smoke exhaust systems

-maintenance of electrical systems, water supply, heating, sewage

-maintenance of air conditioning and ventilation

--maintenance of elevators

-carrying out maintenance of the building and the managing company

territory

-technical supervision

-maintenance of utilities and roads

-machinery services

-passenger transportation

-transport and logistics services

-electrotechnical laboratory

Housekeeping:

-maintenance and cleaning of the rented premises

and managing company territory, disinfection

-protection of the building

-office space rent

-snow and ice cleaning and removal

-conducting tenders

-legal services

-outside windows wash

-ensuring the proper state of the external

facade of the building

Constructional:

-geodesy services

-technical customer

-construction and commissioning

technical supervision

PRICE CATEGORY TARIFF RATES MEASURE 1 GROUPMORE THAN 150 kWh

2 GROUPFROM 150 TO 670 kWh

3 GROUPFROM 670 kWh TO 10 MW

4 GROUPFROM 10 MW AND ABOVE

I PRICECATEGORY

HIGH VOLTAGE TARIFF RATES RUB per kWh 3,02 3,01 х х

III PRICECATEGORY

HIGH VOLTAGE TARIFF RATES RUB per kWh 1,91 1,90 1,89 1,87

POWEROn to unregulated price

RUB per kWhper mouth 642 464,51 640 456,11 632 239,95 625 098,98

IV PRICECATEGORY

HIGH VOLTAGE TARIFF RATES RUB per kWh 1,37 1,37 1,35 1,34

TARIFF RATEfor the capacity for transmission

of electricity


POWEROn to unregulated price


TARIFF RATESFOR ELECTRICITY (HIGH VOLTAGE) FOR SEZ “ALABUGA” RESIDENTS IN 2018

Power supply reliability category Measure Tariff ratesFirst category power supply reliability RUB per kWh 0,78Second category power supply reliability RUB per kWh 0,53

The cost of leasing Medium Voltage-II networks JSC "SEZ PPT" Alabuga"

TARIFF RATESSECOND HALF-YEAR 2018 WITHOUT VAT

Tariff rates without VAT

№ Resource Measure Firsthalf-year 2018

Secondhalf-year 2018

1 Heating RUB per Gcal 1703,76 1774,98

2 Water RUB per m3 29,48 30,72

3 Sewerage RUB per m3 53,34 55,58

4 Storm sewerage RUB per m3 26,76 27,83

№ Gas consumption Measure Second half-year2018

1 More than 500 million m3 per year RUB per 1000 m3 4 669,35

2 From 100 to 500 inclusive RUB per 1000 m3 4 786,38



5 From 0.1 to 1 inclusive RUB per 1000 m3 5 249,89

6 From 0.01 to 0.1 inclusive RUB per 1000 m3 5 532,04

7 To 0.01 inclusive RUB per 1000 m3 5 554,00

TARIFF RATESFOR GAS ON 2018 Average tariff rates without VAT

NECESSARY PERMISSIONSFOR BUILDING AND LAUNCHING FACTORY

Type of work The timeline

Design according to Russian standards 6-9 months

State examination 2-3 months

Construction permit 2 weeks

Building development 1-1.5 years

Installation and commissioning of the equipment 6-9 months(in parallel with construction)

Statement of conformıty of design documentation and technical rules 2 months

Permission to launch 2 weeks

Total: 2-3 years

SUPPORT PROGRAMPROJECT FINANCING INVESTMENT

IMPORT SUBSTITUTION

INTEREST RATEup to 11,2%

INVESTMENT PROJECTS SIZE1 – 20 bln rub.

Ministry of Economy of the Republic of Tatarstansupports enterprises and organizations while obtainingloan under this program

10 authorized banks areinvolved in the implementationof the program:

OJSC «Sberbank Russia»

OJSC «ROSSELKHOZBANK»

OJSC «ALFA-BАNK»

OJSC BANK VTB

PJSC «Promsvazbank»

ОJSC «Gazprombank»

ОJSC «The Bank of Moscow»

PJSC «Otkritie» Financial Corporation Bank

International investment bank

Eurasian Development Bank

STATE SUPPORT OF THEIMPORT SUBSTITUTIONENTERPRISESPERCENT COMPENSATION SCHEME ON CREDITS IN RUBLES

Ministry of Industry and Tradeof the Russian Federationcompensate for

2/3of the key rate of the CB of the RFon credits, obtained in rubles

Enterprises:- Automobile industry

- Civil aircraft industry

- Cable and electrical industry

- Light industry

- Timber industry complex

- Machine-building for food and processing industries

- Oil-and-gas machine industry

- Conventional arms, ammunition, special chemistry

- Radioelectronic industry

- Agricultural machinery industry

- Machine-tool manufacture

- Road-building machinery

- Shipbuilding industry

- Transport machine building

- Heavy engineering industry

- Pharmaceutical and medical industry

- Chemical industry

- Non-ferrous metallurgy

- Ferrous metallurgy

- Power machine building

Kazan

Nizhnekamsk

UfaSterlitamak

Salavat

NEFIS COSMETICS

NIZHNEKAMSKNEFTEKHIM

UFAKHIMPROM

KAUSTIK

SALAVATNEFTORGSINTEZ

NIZHNEKAMSKTECHUGLEROD

ELASTOKAM

AMMONIY

NEFTEHIMSJEVILEN

KAZANORGSINTEZ— LDPE/HDPE 771599 MT Univation Technology— PC 65000 MT Asahi Kasei Chemicals Technology— LLDPE 14,4000 MT Imhausen Germany Technology— EVA 12000 MT

— Oleic acid— Stearic acid

— PP 200000 MT Spheripol Technology— GPPS/HIPS 84000 MT Fina— LLDPE 160000 MT (2010) Sphereline (Basell)— ABS 104000 MT(2010) Polimery Europa— EPS 80000 MT LG Technology

— PC - 10 000 MT(from 2008)

— PVC - 120 000 MT

— LDPE 70000 MT Технология Chevron Phillips— GPPS/HIPS 70000 MT— EPS 50000 MT

— PU systems 20000 MTElastogran Technology

— Nitrogen fertilizers— Ammonium nitrate— Ammonia— Urea— Methanol— Technical gases— Melamine (projected)

— Carbon Black - 85 000 MTYokogawa Technology

— LDPE 14,4000 MT— EVA 12000 MT— Imhausen Germany Technology

SEZ ”Аlabuga”

400 km

Mendeleevsk

POLYMERS PRODUCEDWITHIN 400 KM FROM THE SEZ ”АLABUGА”

SEZ ”Аlabuga”

Izhevsk

Елабуга Nizhnekamsk

NaberezhnyeChelny

Togliatti

Ulyanovsk

Pavlovo

NizhniNovgorod

400 km

FORD SOLLERS

ISUZU

NEFAZ

CASE NEW HOLLAND

Miass

FORD SOLLERS

URALAZ

KAMAZGM-AVTOVAZ

AVTOVAZ

UAZ

PAZ

GAZ

VOLKSWAGEN

IZH AVTOVAZ

123 000trucks67 000cars40 000buses

100 000cars

14 000buses

120 000cars

776 000cars

50 000cars

70 000trucks

35 000cars

4 000cars

1 000buses

220 000trucks

75 000cars

88 000cars

220 000cars

11 000trucks

MOST MAJOR RUSSIAN CARMAKERSLOCATED WITHIN 500 KM FROM THE SEZ ”АLABUGA”

special economic zone 2018 processed foods for mcdonald’s 17.6 mln usd investment volume huhtamaki...

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