General information

Vladimir Popov said: „ The Government’s economy-related agencies have consulted with SMEs from the vast majority of economy sectors‘ affected by introduced restrictions. The list of these industries includes hospitality sector, public catering services, transportation services and  tourism, nine industries in total. We will continue our work and the list of affected inductries will be expanded“.

If the resolution is approved the Entrepreneurship and Innovations Development in Kaluga Region regional program will be amended. The amendments will provide for the State Foundation for Entrepreneurship Support in Kaluga Region capitalization increase  to finance salary-related loans for Kaluga Region SMEs.

Vladimir Popov added: „This support measure grants an opportunity to businessmen to get special-purpose loans to pay salary to their personnel. The loans‘ interest rate will be equal to 0.1% per annum. The amount per one employee shall be a minimum monthly wage. The loans are to be repaid within two years“.

Apart from thet a set of measures to suport companies having bank loans was urgently developed. Small and medium businesses, which have borrowed investment loans, will have an opportunity to get funds to subsidize   interest rates.

Vladimir Popov said: „ Our offer to SMEs includes compensations equaling  the key interest rate  (6%) starting from March 2020“.

RUR50 million from Kaluga Region budget will be allocated to finance the afore-mentioned measures. 

An application submitted by Ultra Dekor Rus OOO was assessed and approved at the meeting. The new modern facility is to manufacture paper base for decorative paper products.  The company plans to invest over RUR4.2 billion in the plant construction.

The production facility having an annual capacity of 40,000 t of products will be built at Kaluga SEZ Lyudinovo site.  

Ultra Dekor Rus OOO plant will supply paper base to Kronospan  Kaluga OOO facility. The product will be used to  manufacture laminated medium and high density fiberboard.  Ultra Dekor Rus OOO  strives to play a major role in substituting imported decorative paper I the Russian market. Currently  Kronospan has to import about  30-40% of paper from abroad.  

Sixty five new jobs are to be created. The new plant is to be commissioned in Q1 2022. 

A meeting of an expert council headed by Ilya Veselov, Kaluga Region Minister for Economic Development, was held on February 11, 2010.

The meeting was dedicated to review of applications from companies planning to become residents of Kaluga special economic zone. An application submitted by Hayat Consumer Goods LLC was reviewed and approved by the council. The company is to invest RUR7.1 billion in its project. 

Hayat is to build a production facility with the annual capacity of 70,000 t of tissue paper products at Borovsk site of Kaluga special economic zone. The company is to distribute its products both in Russia and other countries.   
Five hundred qualified specialists will be employed by the new plant. The facility is to be commissioned in Q2 2022.  

Murat Cetin, Hayat Russia Director General, speaking of details of the project to be implemented in Kaluga Region and its future development prospects, said: “ We have invested RUR 20 billion in facilities producing tissue paper in Russia. We believe that the local market have great potential. When the new plant is built in Kaluga Region, Hayat will become the largest manufacturer of tissue paper products in Russia”.  

The new Hayat plant to be located in Kaluga Region is to be an innovative production facility using only automatic and advanced resource-saving equipment. Its unique trigeneration system capable of efficient resources’ conversion will allow to use natural gas with 80% efficiency in its tissue paper production chains.

The new production facility is to manufacture toilet paper, paper towels, diapers and tissues under  Papia and Familia brands.

The hi-tech plant with the annual capacity of 70,000 t will make the company the largest manufacturer of tissue paper products in Russia. Its total production capacity will reach 210,000 t per annum.

Cetin Murat, HAYAT Russia Director General, said: „We launched our business in Russia in 2015 and managed to reach top production performance. Consumers appreciate our products made of 100% cellulose. In two years we became one of two leading manufacturers in our market segment. Our success inspired us to build two plants in Alabuga SEZ. We believe in high potential of the Russian market. That is why we decided to invest in another plant to be built in Kaluga. After the production facility is commissioned we will become the leading tissue manufacturer in this country. The total production capacity of our plants will reach 210,000 t per annum“.  

Cetin Murat added: „In the five-year period of our operations in Russia HAYAT has invested RUR20 billion. The new plant equipped with robotized production lines is to be commissioned in 2021. Investments are to help us expand our presence in the Russian market. We will continue supporting the development of the Russian economy through highly efficient export operations. Eight per cent of our products are exported to 16 countries of the world“.  

The attendees are to access the current automotive industry status, propose business strategies, for development of the industry in general and its separate sectors in particular, and review different scenarios for the industry further development. 

The Russian automotive industry is to face global changes in the next years. Rules of the game for car manufacturers are to be changed while digitalization’s and smart technologies’ impact on the market will constantly grow.  What is the future of the automotive industry? 

Event framework

Two-day business event consisting of a plenary and strategy session and visits to plants of Kaluga Region automotive industry cluster.

Key discussion topics

• Russian automotive industry: prospects, trends, key problems. Forecasting the future.
• Special Investment Contract (SIC) and new investment regime: what measures the Russian Government is to take to support the automotive industry and promote its development?
• Development strategy for automotive components’ manufacturers: is there a possibility to fully substitute imported products?
• New technologies for the automotive industry: is the industry ready to introduce innovative solutions?

To discuss organizational issues please contact Olga Churikova, a representative of the Agency for Regional Development of Kaluga Region, at: churikova.o@arrko.ru

The milk processing plant with a daily capacity of 1,500 t will be the largest TH Group production facility of its kind in Russia. The plant is to be commissioned in 2021.  

An amount of US$ 155 million is to be invested in the plant construction project.  Upon reaching its full capacity the plant is to produce 10 types of products, including pasteurized and fresh milk,  cheese, butter, sour cream, yogurt, dry milk, ice cream, etc. TH Group farms located in Moscow and Kaluga Regions are to supply milk to be processed at the plant.

The plant is to be built with due consideration of all requirements applicable to modern milk processing  facilities. The plant  premises will include production and packing shops, a facility for raw milk receipt and storage, processing and packaging lines, an automated storage facility, public and administrative buildings, etc.  All production process will be automated for better efficiency of the plant. The new facility is an element of an integrated milk processing chain being built under a project providing for creation of a hi-tech milk production and processing complex in Russia. The project costs US$ 2.7 billion.  TH Group innovative milk processing facility will export its products abroad, including export to China and Asia Pacific Region countries.

TH Group already operates in Kaluga Region.  A construction of a stock breeding facility was launched in Ulyanovo District on October 18, 2017. Several farms are to be built in Khvastovichi District.  The milk processing plant construction is another important step in development of a major Vietnamese brand. It is one of the largest investment projects being implemented in Kaluga Region food industry. TH Group is to invest US$ 220 million in its projects in Kaluga Region.

Notes:

TH Group (Vietnam) is a group of companies established in 2009. The group is engaged in hi-tech projects in the field of agriculture, food industry, pharmaceutical industry, financial sector and education. TH Group exports 60 types of products to dozens of countries.

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Kaluga special economic zone has two sites in Lyudinovo and Borovsk districts of Kaluga Region. It is the closest industrial site of its kind to Moscow.  Kaluga SEZ has an area of 1,042 he. It offers all regionally available benefits, including those related to access to engineering, transport and business infrastructure, as well as tax breaks and customs benefits provided for by federal legislation. SEZ industrial development is to help revamp industrial facilities located in the northern and southern parts of Kaluga Region, and create preconditions for development of hi-tech industry sectors.

The expert council consists of the Ministry for Economic Development of Kaluga Region officials, representatives of relevant ministries, agencies, and development institutions as well as independent experts.

Both companies have selected land plots at Borovsk site of Kaluga SEZ for their projects. The meeting attendees noted that new project have good import substitution potential.

The project to be implemented by National Collagen Company  LLC provides for construction of a biotechnology plant to produce medical and food gelatin Its products are to substitute foreign-made gelatin in the following sectors: food industry (canned food, juices, drinks, confectionery products, milk products, meat delicacies), healthcare and pharmaceutical industry (capsules for medicines, surgical sutures  and sponges, blood substitutes),   agriculture (feed additives  for cattle and poultry husbandry), printing (banknotes’ printing, paints, films), construction (paints, glues, varnishes), etc.  The company is to invest over RUR 3 billion in the project in total. 103 new jobs are to be created.

MPT-Plastik is to build a plant to produce technical hoses of PVC plastics. The list of main consumers for such products includes engineering, food industry, agriculture, construction industry, as well as farms and country houses’ owners. Investments in the project amount to RUR 192.3 million, 61 new jobs are to be created.

Note:

Kaluga SEZ includes two land plots located in Borovsk and Lyudinovo districts of Kaluga Region. The SEZ is the closest industrial SEZ of this kind to Moscow.  It has an area of 1,042 ha. SEZ residents enjoy benefits provided for by the regional legislation, related to access to engineering, transport and business infrastructure, as well as tax breaks and customs benefits provided for by federal legislation.  The industrial development ensured by the SEZ is to promote modernization of industry in the northern and southern areas of Kaluga Region and to support the development of hi-tech industry sectors 

A conference dedicated to cooperation between Russia and Italy in the field of trade and economy field is to be held in Comune di Marcon (Venice province, Italy), was held on June 19. The main focus of the event was on specific features of industrial localization in Russia in general, and in industrial parks and special economic zones in particular. Kaluga Region Government organization was headed by Vladimir Popov, Deputy Governor.

The conference agenda provides for  B2B meetings and a visit to San Marco production facility during its open day.     

Discussions’ attendees are to share their best practices in the field of joint projects’ implementation, and present successful cooperation cases.  A presentation on Kaluga industrial special economic zone is to be delivered. Fourteen companies operate in the SEZ, including San Marco of Italy, which is engaged in construction of a paint plant. According to its business plan, the company is to invest RUR 168 million in the project.

San Marco Group is a group of industrial companies manufacturing and marketing professional construction paints and decorative coatings.  The company was established back in 1962. Now it is a global leader in its sector.  The group consists of nine production facilities and owns 7 brands. It is one of the largest professional paints and decorative materials’ manufacturer in Italy. The group invests about 5% of its revenue in R&D programs. San Marco has developed a wide range of paints and coating methods both traditional and innovative, applying state-of-the-art construction  technologies.

Italy is one of the European leaders in terms of investments in the Russian economy, sharing the leading positions with Germany and France. The vast majority of projects were implemented as joint ventures, Italian companies also transfer their technologies in various areas, including  agriculture.

A number of projects are being implemented by Italian companies in Kaluga Region, including  Berlin Pharma (pharmaceuticals), Zuegg Russia (fruit semi-products), HT&L Fitting Rus (automotive components), Laminam Rus (ultra-thin ceramic panels), Palladio Dzaninni(packaging materials for pharmaceuticals and cosmetic products), Gervasi Vostok (truck bodies), Mercator Kaluga (road and municipal machinery and equipment). A cooperation agreement between Kaluga pharmaceutical cluster and C.H.I.C.O. (Cluster of Health, Innovation and Community), one of the largest  Italian clusters, was signed at Meet in Italy for Life Sciences partnering forum in October 2016. The agreement provides for cooperation in a number of areas being of primary importance for pharmaceutical clusters, namely best practices sharing, participation in joint projects, technologies’ development and production of original pharmaceutical substances. 

The agreement provides for cooperation of the parties in organizing cargo railway service between Lyudinovo-1 railway station of the Moscow Railway and the territory of Kaluga SEZ on the basis of public-private partnership. In particular, an option will be reviewed to conclude concessionary agreement to implement investment project aiming to create an engineering and manufacturing complex of non-public railway lines.

The agreement provides for construction of a plant to produce grill and perforated flooring and perforated sheets under  Reshnastil brand. The plant is to be built in Vorsino industrial park.    

Estimated investments are to exceed RUR 200 million, 50-60 new jobs are to be created.

Tsentr-Trade OOO (Reshnastil brand) is one of the largest manufacturers of   grill flooring and perforated metal sheets in Russia. The company established six years ago managed to become a leader in Russia in terms of the afore-mentioned materials supply.  Its key customers are construction and engineering companies. Its products are used at oil and gas production and refining facilities, chemical plants as well as companies engaged in civil construction.   

Tsentr-Trade products are used at a number of major Russian production facilities, including Syzran refinery, Novokuibyshevsk Refinery, ammonia plant in Kingisepp, Omsk Refinery, Moscow Refinery, Ryazan refinery, Yamal LPG Plant, Moscow International Business Center, Yandex Data Center, Lukoil Off-Shore Platform, Solntsevo depot, Lahta Center, Novocherkassk Regional Power Station, etc.  

It was noted that the dynamic development of modern building materials’ market in Russia promotes the construction of innovative hi-tech production facilities. The construction of a plant manufacturing heavy duty self-supporting structures used in civil and industrial construction will result in increasing the share of locally produced   grill flooring.

Alexander Kornakov, Director General, Tsentr-Trade, said: “ Tsentr-Trade  is to commission a plant manufacturing grill flooring and perforated metal sheets in Kaluga Region. Our mission provides for supply of modern high quality materials to construction sites. Products manufactured in Kaluga Region, will be distributed both in Russia and the CIS countries shaping the image of Russian quality products”.  

Notes:

Vorsino  is the largest industrial park  in Kaluga Region with an area of 1,610 ha. The list of its residents exceeds 40 leading Russian and global companies, including  Samsung, L’Oreal, Nestle, AstraZeneca Industries, NLMK. Freight Village Vorsino, a multimodal transport and logistics facility located in Vorsino, is an element of New Silk Road international logistics project implemented to the benefit of Russia, China, South Korea and Eastern Europe. 

AO “Kaluga International Airport” took the second place of Russian award as “Best regional airport 2016 with an annual passenger flow of less than 500,000 passengers.”

The award was established by NAIS organizational committee, the Federal Air Transportation Agency, and AVIA.RU, aviation industry web portal. The award main goals are the following: to shape the positive image of airport and promote their business reputation as well as to identify and support the most efficient and dynamically developing airports of Russia.

The award expert council includes representatives of the major Russian airlines, namely Aeroflot, Transaero, Utair, S7, Ural Airlines; heads of industry associations (MARAP, AEVT, AVI, ATB); lead journalists from AVIA.RU, ÀÒÎ, RBC, TASS, Kommersant, etc.

Kaluga International Airport

Kaluga International Airport is a member of ACI Europe, of Association of Civil Aviation. on February 2016 Kaluga International Airport was the winner in the Best Regional Airport 2015 with the passenger flow of less than 500,000 passengers. It took also the second place among all Russian airports in the category best air transport infrastructure in the field of transport security.

According to the press department of Kaluga International Airport.

At the council session, the Government of Kaluga Region and the autonomous nonprofit organization Agency for Technological Development signed an agreement on cooperation. The document was signed by Kaluga Region Governor Anatoly Artamonov and the Agency‘s General Director Maxim Shereikin. The contracting parties agreed to cooperate in implementation of investment projects for technological modernization of the region’s existing enterprises. The regional administration will assist the Agency in identifying and selecting enterprises interested in modernization and provide support in advancement of investment projects for introduction of new technologies. The Agency will collaborate with industrial enterprises on an individual basis, developing tailored programs and solutions.

As noted by Maxim Shereikin, Kaluga Region with its investment climate is the perfect place for localization of advanced technological solutions and implementation of investment projects for technological modernization of operating enterprises.

In 2016, the region achieved an index of industrial production of 108.6%. “Last year we saw the commissioning of several high-tech production plants. The region is continuing to implement investment projects and develop the Kaluga special economic zone”, commented Anatoly Artamonov.

According to the Ministry of Economic Development, in 2016 Kaluga Region’s manufacturers were increasing exports of their products, including - to a significant extent - to non-neighboring countries. Total growth of exports was nearly 20%, and exports to non-neighboring countries almost doubled. The biggest share in the structure of exports – nearly 70% - is represented by products of mechanical engineering and metal forming. Kaluga Region holds the 1 place in the Central Federal District by manufacturing output per capita.

Kaluga Region’s industrial growth is still largely based on mechanical engineering (manufacturing of vehicles, electronics, machines and equipment), with significant contributions from metallurgy and metal forming, food industry, timber industry (pulp and paper production, timber processing), manufacturing of building materials and chemical production. These sectors have already implemented and are proceeding with major investment projects.

The federal government has adopted a range of industry support measures targeted at stimulating demand for competitive products, manufacturing of products to substitute imports, creation of new production plants, mitigation of the most pressing issues in industry. 

The range of key federal support mechanisms includes special investment contracts. The Industry Development Fund is currently reviewing investment projects from four Kaluga Region companies.

Speaking about instruments and measures of support for industrial companies, Violeta Komissarova said that the Kaluga CCI was providing more than 70 types of business support services. Traditional support measures include evaluations and expert assessments, advertising and publishing activities, foreign trade activities, organization of exhibitions and fairs. The Kaluga CCI is expanding its collaboration with both governmental agencies and federal and regional development institutions in order to recruit financing for implementation of entrepreneurs’ business projects. Specifically, the Kaluga CCI is cooperating with Corporation MSP, the Industry Development Fund, Innovations Support Fund etc.

The parties have reached a preliminary agreement to build a new production facility in Kaluga special economic zone. MiraxBioPharma has chosen a land plot of 6.8 ha, located in Borovsk district. The company is to invest about RUR 3 billion, approximately 480 new jobs will be created.

The plant is to manufacture pharmaceutical substances and finished dosage form for female and male reproductive health and cancer preventive treatment.  The company develops and produces innovative non-hormonal pharmaceuticals used for complex therapy against  mastopathy, hysteromyoma, papilloma viral infection, as well as for preventive treatment of breast and ovarium cancer,  cervical cancer and other diseases. Products are manufactured in accordance with GMP standards.

MiraxBioPharma ZAO is a modern next generation Russian pharmaceutical company. Its business is based on advanced trends of pharmaceutical business development, and it meets modern quality and management standards’ requirements.  

Mikhail Paltsev said: «Our project is not only a full cycle pharmaceutical production facility. It is a part of a holding grout having its own R&D department, a medical department, and promotion and marketing department.  The new plant will become a unique R&D and production  facility to produce and distribute modern medicines, including unique ones. We believe that the plant capacity will exceed 1 billion SKUs per annum”.

Anatoly Artamonov in his turn pointed out that the company would become a new member of Kaluga pharmaceutical cluster. He said: “The Russian pharmaceutical project will help attract new technologies and competencies to Kaluga Region”

Pharmaceutical companies operating in Kaluga Region manufacture about 139 types of medicines, the production of a few dozens more is to begin in the near future. Finished dosage forms account for over 80% of Kaluga pharmaceutical cluster production volume, the companies produced medicines for RUR 19 billion in 2015. 

In October 2016  Kaluga pharmaceutical cluster  became a part of a top priority project announced by the Ministry for Economic Development of the Russian Federation named Development of Innovative Clusters, Global Investment Attractiveness Leaders.

The expert council includes representatives of Kaluga Region Ministry for Economic Development, relevant ministries and government agencies, development institutions, science and business entities, as well as independent experts.  

Evgeny Veselkov, Director General, Kaluga SEZ management company, spoke of the investment project, their stages, social and economic performance. He noted that the projects had significant import substitution potential and envisaged the use of innovative technologies forming the core of production processes.

Agro Invest OOO is an existing resident of Kaluga SEZ Lyudinovo site. The company implements an investment project for construction of greenhouses and applies the most modern technologies to produce vegetables all year round.  It plans to expand its production facilities and to commission new greenhouses. The company increases the scope of investments from RUR 13 billion to RUR 15.8 billion.    

Alexey Soshnikov, Director General, Agro Invest OOO, said: “Today the total area of greenhouses equals 20 ha, including 10 ha where tomatoes are produced, 8 ha where cucumbers are produced, and 2 ha where seedlings are produces. By the end of 2016 we are to commission new greenhouses with the area of 23 ha to substitute imported tomatoes. The implementation of the second stage of our project is to make us the greenhouse industry leaders in terms of production scope and volume. By the end of this year we are to become the largest greenhouse facility both in the Central Federal District and in Russia in general”.

Kronshpan Kaluga OOO project provides for launching of fiberboard production. The new plant is to manufacture at least 313,000 m3 of fiberboard per annum. Apart from that, the company is to produce high density fiberboard and medium density fiberboard coated with special decorative laminate film. The new production facility is to be built  at Kaluga SEZ Lyudinovo site. RUR 17.54 billion is to be invested in the project, at least 150 new jobs will be created.  

Thus, following this expert council sitting, there are ten residents in Kaluga SEZ, including one existing resident, namely Agro Invest OOO.  Nine memorandums of intentions have been signed with potential investors.    

Three companies received Kaluga SEZ resident status in December 2015: Krasin Pencil Factory OOO, Lyudinovo Environment-Friendly House-Building Factory OOO, VODOSTOP. The companies are to invest RUR 4.7 billion in total. In May 2016 the list of Kaluga SEZ residents was extended. Two more companies joined the project, namely Alkhimet OOO, Russia, and San Marco Russia OOO, Italy. The total amount of investments: RUR 766 million.     

At the first regional expert council, which took place on October 5, 2016 plans of three more potential residents were reviewed and approved.  They were DEKO Group OOO, Interpharmglass Kaluga OOO, and Kaluga Polymer OOO. The total amount of investments under the projects equals RUR 6.5 billion.      

Kaluga SEZ includes two sites located in Lyudinovo and Borovsk districts. Its is the nearest special economic zone of its kind to Moscow.  The area of Kaluga SEZ is  1,042 ha. Its residents enjoy both advantaged offered by Kaluga Region legislation, including access to engineering, transport and business infrastructure, and advantages provided for by federal laws, such as tax breaks and customs preferences.    Kaluga SEZ  industrial development will help modernize industrial facilities located in southern and northern parts of the region and provide for conditions for hi-tech industry development.

Meeting of the Council for Priority Project Contest took place in Moscow on the 19th of October chaired by Oleg Fomichev, State Secretary-Deputy Minister of Economic Development and Trade. Clusters qualified for participation in the contest were named. The contest Global Leading Clusters in Terms of Investment Attractiveness was announced by Ministry of Economic Development and Trade of the Russian Federation in June 2016.

The new plant manufacturing neutral borosilicate glass (first hydrolytic class) to produce glass tubes, ampules, bottles, cartridges, will be located in  Kaluga industrial special economic zone. The company selected a 15 ha land plot located Lyudinovo District.

The cost of the first stage of the plant construction equals US$ 60 million. The project provides for three stages. Upon completion of the last stage the manufacturing facility will be able to produce medical glass for Russian manufacturers and to export its products to Europe and Asia.   The plant is to ensure supply of 20% of the total Russian market demand for medical borosilicate glass.
 

As of today an agreement with Kaluga Region Government is concluded, a contract with technology and equipment supplier is signed, the design documentation is 70% ready. A construction permit is to be obtained in December 2016.   The first production lime is to be commissioned in the first quarter of 2018. The second and third lines are to be commissioned in 2019 and 2020 correspondingly.  

At the first stage the plant is to employ 330 people, at the second and third stages this amount is to reach 600.  Thanks to an innovative production technology the borosilicate glass has increased chemical strength. It is 100% environmentally safe and can be fully recycled after the use of content. The waste generated at all production stages is environmentally neutral. Its gathering and recycling do not require any special technology (glass granules). All primary waste will be recycled within the main production cycle. It will be added to the glass bath.

Note:

Kaluga Region pharmaceutical companies manufacture over 109 types of products, about 20 new medicines are being registered, several dozens more are being developed. Finished dosage forms account for over 80% of the cluster output. In 2015 the cluster produced medicines for RUR 19 billion.

According to results of a survey of 750 clusters carried out by European Secretariat for Cluster Analysis (ESCA) only five Russian clusters received Cluster Excellence bronze certificate, including Kaluga pharmaceutical cluster, which had the highest rating in  Health and Medical Science group. It was compared to 19 leading European clusters operating in the same business area.