the advantage of ojsc sez “lipetsk” for foreign investors report of llc “yokohama r.p.z.”
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The advantage of OJSC SEZ “Lipetsk” for foreign investors Report of LLC “YOKOHAMA R.P.Z.” Production of Automobile Tires “Yokohama”. November 6, 2013 IX International Investment Conference “Lipetsk Region: Development through Investment” - PowerPoint PPT PresentationTRANSCRIPT
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
The advantage of OJSC SEZ “Lipetsk” for foreign investors Report of LLC “YOKOHAMA R.P.Z.”
Production of Automobile Tires “Yokohama”
November 6, 2013IX International Investment Conference
“Lipetsk Region: Development through Investment” LLC ’YOKOHAMA R.P.Z.”
General Director Shigeru NAKANO
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Fact of the plant “Yokohama”
Company name : LLC YOKOHAMA R.P.Z. [ ООО «ЙОКОХАМА Р.П.З.» ] Shareholders : Yokohama Rubber Co., Ltd. 80 %、 ITOCHU Corporation 20 %
Products : Passenger Automobile Tire
Production : ann.1.4 million units (Phase 1)
Land : 29ha (including additional land plot for extension).
Construction : Started in March, 2010
Commercial production : in 2011
Employees : ca. 580 persons (Phase 1)
Investment : ca. 6,5 billion Rubles ( Phase 1 / ca. 149 million Euro )
Market : Russia (Replacement) 80-90% / Export 10-20% (Plan)
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Investigation on construction site
• Started to study the investigation on the construction site in Russia at the beginning of 2008
• On investigating, excluded the site at the city of Moscow, Moscow region, the city of St. Petersburg, and Leningrad region as main foreign investors have already built their plants.
• Taking into account that the major tire market exists around the city of Moscow and the western side of Russia and so, taking into account the distance to the market, we started to visit and investigate 21 candidate sites in 6 regions around Moscow area from July, 2008.
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Candidate construction sites we visited
Other candidate sites – same as above
One candidate site - Just a field without any infrastructure
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Investigation on SEZ
• On investigation on the construction site, we recognized there were 2 SEZs of industrial and production type
• 2 Federal SEZs of industrial and production type are located at– Lipetsk region, Gryazi district– Republic of Tatarstan, Elabuga
• We decided to visit SEZ in Lipetsk region in September, 2009.
– We compared 2 SEZs and got more interest in SEZ in Lipetsk region because of the distance to the market.
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First Visit to SEZ “Lipetsk” September, 2008 )
Glass factory (Russian) Heat exchangers factory (Italian)
Cable Bridge for Electricity
Road
Leveled LandAdministration Building
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Study of lead time and our case
Study of Lead Time
Candidate Site
Lead Time (max.)
Preparation for
Industrial Land
→Apply for
Infrastructure
→
Installation of
Infrastructure
→ Apply for Permits
→Start
Construction
→Complete Constructio
n
I Case A 48 months 3-6 months 3-6 months 6-12 months
6 - 12 months 12 months
II Case B 42 months Done 3-6 months 6-12 months
6 - 12 months 12 months
IIIPrivate
Technopark
36 months Done Done 6-12 months
6 - 12 months 12 months
IV SEZ 24 months Done Done Done 6 - 12 months 12 months
SEZ Lipetsk
34 months Done Done Done 15 months (actual) 19 months
Dec. '08 ~ Mar. '10~ Sept. '11
Our case
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Comparison between SEZ “Lipetsk” and other sites
SEZ in Lipetsk Private Technopark A Private Technopark B
Infrastructure
◎ △ △Installed to the boundary
of the territory of residents
Planned, but takes 1 year to complete
Planned, but takes 1 year to complete
Years to complete construction
○ △ △2 years 3 years 3 years
Electricity access charge◎ × ×
Not required 100 million ruble 83 million rubleLand cost ( if you purchase after the construction )
◎ × ×203 thousand ruble/20
ha400 million ruble/20ha 167 million ruble/20ha
Import Duty on Equipments
◎ △ △Free Investment in Kind Investment in Kind
VAT on Equipments◎ ○ ○Free Returned after sales Returned after sales
Import Duty and VAT on raw materials
○ × ×To be paid on selling
products
Corporate Tax○ ○ ○
Exempt ion for 5 years Exempt ion for 5 years Exempt ion for 5 years
Labor Force○ △ △
500,000 people/Lipetsk 120,000 around the area 90,000 around the area
Distance to Moscow△ ○ △
450 km 100 km 300 kmLiving standard for
foreigner○ △ ×
Capital of Lipetsk region Very small town Small town
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Conclusion as of today
• To select SEZ “Lipetsk” as our construction site in Russia was the right decision so far because:
1. You can complete construction of your plant shorter than at other sites.
2. You can enjoy the privileges provided to the residents of SEZ
3. You can expect the full support of the governmental organizations
such as Ministry of Economic Development, Administration of
Lipetsk region, OJSC “SEZ”, OJSC SEZ “Lipetsk”,etc.
• The support from these organizations helps us to solve any issues and problems and we really appreciate it a lot.
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Visit of Mr. Nagumo, President of Yokohama Rubber Co. ( Nov. 25, 2008 )
Together with the Governor, Mr. Korolev
At Lipetsk Airport At the site
At the administration building of SEZ LipetskMeeting with Lipetsk Administration members
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Ground Breaking Ceremony
Speech First Stone
Ground Break Kagami-Biraki ( Breaking of Sake Barrel )
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“BluEarth” – new eco-tire concept by Yokohama
What is “BluEarth”? “BluEarth” is an eco-tire concept and a new product line introduced by Yokohama in 2011. It is a concept of environmentally-friendly, human-friendly and socially-friendly tires. Bluearth tires realize the top fuel-efficient performance by improving the vehicle fuel-savings and have enhanced grip performance on the wet road due to their specific structure and components (nano-blend compound, orange oil, etc.).
What is “BluEarth”?
For environment: Achieving superior fuel saving to reduce CO2 emissions.
For humanity: Solid safety and superior comfort
For society: Lowered external car noise level
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Thank you !