INVESTORS’ HOBBIESTo work well, you need to enjoy active recreation. pages 6-7

№4 june 2015

ZAVOLZHYE INDUSTRIAL PARKDevelopment continues. pages 2-3

NOT ONLY GREENFIELDSites are ready for new businesses.page 4

A Business Mission to South Korea and Japan

Ulyanovsk Region among Leading Regions of the Country in Terms of Development of Public-Private Partnerships

T he Region Development Corporation has intro-duced the investment

potential of Ulyanovsk Region at a business mission in Seoul and Tokyo on April 20-24. Japanese and Korean investors attended a presentation by the First Deputy to the CEO of the Corporation, Igor Ryabikov. Mr. Ryabikov talked about potential projects to be im-plemented in industrial parks of the region.

The event was organized by the Association of Industrial Parks. Upon their arrival to South Korea, the delegation presented their proposals on localizing production

to the business community of the country. The seminar was attended by 25 investors representing dif-ferent Korean businesses. The Rus-sian delegation visited Namdong and Cheonan Industrial Parks and studied their infrastructural support schemes. An investment seminar was held in Tokyo on April 23. It was attended by representatives of 32 Japanese industrial corporations.

After this visit, there are plans that within the next several months representatives of six companies will visit Ulyanovsk Region. The visiting delegations will represent manufacturers of automobile parts, foodstuffs and plastic products.

The results of the new rating were presented at Russian Week of

Public-Private Partnerships, 2nd Infrastructure Project Con-gress. Ulyanovsk Region came in 12th, showing the most impressive growth dynamic among other regions of the Russian Federation in 2014, going up in the rating by sixty positions in a single year.

This success was due to a number of undertaken steps. In 2014 the region adopted a local law on PPPs, held training semi-nars for bodies of authority and municipalities, and completed several capital-intensive pro-jects over the course of several years.

Speaking at the event, Gov-ernor of Ulyanovsk Region Sergey Morozov said that the work on the PPP mechanisms has been underway in the region since 2006. “These ap-proaches are most often used in

health care, education, sports,

culture, social services, hous-

ing and utilities sectors. Most

projects have been presented

in the sphere of health care

(Fresenius Company Dialysis

Center, Oncology Clinic of Ad-

vanced Medical Technologies,

and General Practitioner Clin-

ics within the program entitled

“Your Neighborhood Doctor”).

One of the most recent projects

is the project of a new facility,

Volga Sport Arena with an ar-

tificial ice field and the seating

capacity of 5,000. This is a pilot

project within the framework

of the concession law. Experts

appreciate the complexity of

the process schemes being ap-

plied. The project won the first

place at the All-Russian Investor

Awards’ 2014 Competition, in

the nomination for the Best Pub-

lic Private Partnership: The Deal

of 2013,” the Governor said.

Investor’s BulletInULYANOVSK REGION

PARK TODAY

Jokey PlastikJokey Plastik Ulyanovsk, LLC. Production

of plastic packaging.Construction has been fully completed,

the plant entered into operation. Ceremonial opening of the plant has been planned for August or September 2015.

HempelHempel Rus, CJSC. Lacquer and paint

products. RUB 800 mln in investments.Construction on the site has been

completed. At present the investor is getting ready to receive a package of documents for commissioning the plant into operation. The plant is planned to be officially opened in October.

Hempel

DMG MORI SEIKIUlyanovsk Machine Building Plant, LLC.

Creation of a modern machine-building facility. More than RUB 3 bln in investments.

The company is continuing construction: production and office blocks have been completed, interior planning and design is currently underway, installation of equipment will commence soon. Production is also currently underway in the Nanocenter

Zavolzhye Industrial Park

building, leased from the Ulyanovsk Region Development Corporation. More than 100  pieces of equipment have been produced. The plant is expected to commence operation in September 2015.

NemakNemak Rus, LLC. An automobile parts

production facility. RUB 2 bln in investments.80% of construction have been

completed, manufacturing has been started. The remaining two production lines will be delivered during the summer of 2015. The enterprise is scheduled to open in the fall of 2015.

Bridgestone

Jokey Plastik, Schaeffler, Takata, Nanocenter

DMG MORI SEIKI

Nemak

2 june 2015 GREENFIELD

BridgestoneBridgestone Tire Manufacturing CIS, LLC.

An automobile tire production plant. RUB 12.5 bln in investments.

The company is currently working on building the production facilities on site. The investor has been provided assistance in adding all the necessary engineering networks. The enterprise is scheduled to go into operation by 2016.

The following companies have complet-ed their production facilities in 2014-2015: Schaeffler, a German manufacturer of au-tomobile parts (RUB 2 bln of investments), Legrand, a French manufacturer of electro-technical equipment (RUB 500 mln of in-vestments), and MARS, an American com-pany that opened a new production facility (RUB 440 mln of investments). Actively op-erating over the past several years are EFES, a Turkish company (more than RUB 7.2 bln of investments), TAKATA, a Japanese com-pany (RUB 1 bln of investments), two MARS factories (more than RUB 6 bln) and a nanotechnology center (RUB 1.3 bln).

DEVELOPMENT IS CONTINUING

The Government and the Ulyanovsk Region Development Corporation have been working with various financial institutions on the issue of developing the park further. In the early 2015 OJSC Sberbank of Russia opened a credit line to set up the infrastructure for the fourth part of Zavolzhye Industrial Park.

Schaeffler

Bridgestone

The federal project of industrial development with a special status: tax benefits for 15 years

for regional investment projects and customs privileges as prescribed by federal legislation.

Road infrastructure construction is underway at the SEZ site. The first road is being prepared. The first layer of asphalt was laid in late May. Earthwork is being done to build the taxiway.

Electrical equipment for distribution substations has been assembled and

fine-tuned. At present work is underway to assemble the cable lines, and install the systems for accounting and distribution of electricity.

Work is underway to build the engineering infrastructure: storm drain reservoirs and force main sewerage pipelines. Public zone facilities are also under construction at this time. By May 15 the office and administrative buildings were transferred for installation of the equipment of the central dispatcher point.

Special Economic Zone

Promtech-Ulyanovsk site

Cabling of electrical supply networks First passage of the automobile road

read more: www.ulregion.com

3 june 2015 GREENFIELD

DEGA Agro-Industrial Park

DEGA Group (Switzerland) is working on

creating an agro-indus-trial park in the region.

DEGA Ulyanovsk full cycle park will span the territory of more than 200 hectares. It will be a full-scale agropark with various facilities (greenhouses, process-ing facilities for agri-cultural products, a meat-processing plant, a bakery, and a dairy plant). After the project is implemented, the park will not only provide agricultural products to Ulyanovsk Region but export it to neighbor-ing regions as well. The territory of the park will be provided with auton-omous infrastructure. After the project is com-pleted, a total of 6000 new jobs will be created.

“Implementation of the agropark project will allow to attract opera-tors from many sectors of agribusiness, from farms to enterprises processing, packing and selling prod-ucts,” Sergey Kaushn-yan, General Director of Park Ulyanovsk LLC said. Manufacturers in need of financing will be

offered various schemes for implementing their business projects. To do this, private investors and investment funds are be-ing invited to the project. Considering the geo-graphical and the climatic factors, we are confident that this agribusiness cluster will be a success.

Ulyanovsk Region fits well for development and implementation of different agribusiness di-rections and the location will allow to guarantee a large market for sales.”

First Deputy Chairman of the Regional Government Alexander Smekalin said that this was an entirely

new approach to man-aging an industrial park, with a concrete com-pany serving as a strate-gic partner for Russian and foreign investors. “On the one hand, the company accumulates investments from differ-ent sources and invests them into developing a

single comprehensive pro-ject, an agribusiness one in our case, and on the other hand, serves as a guarantor on a consider-able part of obligations. Today Dega is planning to invest money into cre-ating a center of gas gen-eration and development of the on-site network.”

4 june 2015 GREENFIELD

20 000 m2 – total area of manufacturing and warehouse facilities

1st part of the project:- production area – 5 000 m2

- administrative building

Park infrastructure:

Capital Holding Company project in Uly-anovsk is being implemented by Zavolzhye Technopark, LLC. On March 19 Ulyanovsk

Region Development Corporation transferred to the company the land plot to create a “build to suit” industrial park, with ready buildings that will be leased to companies developing their production projects.

On September 19, 2014 Governor of Ulyanovsk Region Sergey Morozov signed an investment agree-ment with Capital Holding Company, CJSC.

At present the company is involved in the design of the facility. In the summer plans are to prepare the land for construction that will commence after the preparations are complete.

Sites Ready for Business Zavolzhye Technopark Simbirsk Industrial Park

- electrical substation - water supply system

- a business center- a conference center- a cafe

AAR Rus site10 000 m2 – a warehouse facility for leaseon the territory of the Special Economic Zone

A facility with ready-to-use manufacturing facilities, warehouses and office space, all the necessary communications, and a developed infrastructure for production facilities.

The project is being implemented by Inprom Estate, a Russian company based in one of the buildings of a former radio lamp plant. At present the investor is working on reconstruction and repairs of the building. The work is expected to be completed in the third quarter of this year.

9500 m2 production facilities

1611.5 m2 free layout office space

5 june 2015 BROWNFIELD

Ulyanovsk Region is

busy setting up industrial

parks, building and starting

up new enterprises.

Representatives of investor

companies are working very

hard to create cutting-edge

enterprises with hi-tech

production processes. They

have practically no free time

but to work hard people

need to rest well, too.

It must be said that

the region has been

organizing various events,

festivals and competitions

regularly. There are events

for athletes and musicians,

fans of history and creative

performers, travelers and

nature lovers, as well as for

people who like going to

nature outings with friends.

So what do managers

and staff of new enterprises

do in their spare time? Do

they have hobbies that

perhaps help them in their

work? We have conducted a

short survey of our residents

and asked our investors

how they spent their spare

time. Below are some of

the responses they gave

us; more responses will be

published in upcoming

issues.

Tatiana Fadeeva

Ayumu Nibe, Head of Department, Business Planning and LogisticsBMCIS, LLC

In my spare time here in Ulyanovsk I play lawn tennis and go swimming. I chose these sports to compensate for the lack of physical exercise that we need so much due to our office work. I have been swimming for a year and a half, and playing tennis for about half a year.

Yusif Mekhtiev, Director of Pet Food Factory, Mars, LLC

I’ve been attending Sambo training in Forma Club with coach Nikolai Tsukanov. I think my coach is very highly qualified, and I like the other guys I’ve been training with. I go to my training sessions every day, immediately after work. I’ve always wanted to do it, and here in Ulyanovsk all factors have come together: a good venue, a great coach and enough time. I would like to visit various nature locations, too. I came to Ulyanovsk Region in August of last year, and it took me a while to get into the order of things, and then the weather turned to worse and was no longer pleasant enough to go anywhere. This summer I am planning to catch up.

Maslenitsa festival

EDITOR’S NOTE www.volgaquest.com 1

Sleddogs sports festival “Volga-Quest”Slavic culture festival “Wild Peony”

Maslenitsa festival

6 june 2015 LEISURE

Oleg Kleschev, Director of Chocolate Factory, Mars, LLC

When I came to Ulyanovsk to work here, I knew that the region had two remarkable rivers – the Volga and the Sviyaga. I love fishing, so my colleagues and I go to fishing trips from time to time. My cultural program included visits to the Ulyanovsk Drama Theater. When I first went there, I was very impressed with the interior decor; not even every Moscow theater can compare. I am not a theater critic so I cannot say how professional the acting was, but I loved everything, especially the atmosphere. When people go there, it is obvious that it is a special event for them. My wife and I go to the movies, too, Aquamall and IMAX theaters to watch new films, and the shows are always very impressive. I know that I have not yet exhausted all the opportunities that lie before me in Ulyanovsk and in neighboring regions. In the near future I am planning to take my family to the Aviation Museum and visit Undory and Bolgar. I would very much like to visit the Civil Aviation Museum. My first degree is in aviation engineering but so far I have only seen photos of my colleagues in the museum where they sat in airplane cockpits. Nature in Ulyanovsk Region is very beautiful. I often go for a drive around the area, and I like choosing different routes so that I can explore the surroundings. Ulyanovsk Region, with its forests and rivers, reminds me of my native Belarus, where I spent my childhood.

Hiroomi Ogawa, Section Chief, Production Area, BMCIS, LLC

My hobby is playing percussion instrument and drums. I was playing drums in my school brass band club when I was a school student. After I was hired by Bridgestone, I joined the company’s brass band (in Japan the Bridgestone Corporation has its own orchestra). I am very proud of my hobby: it gives me an opportunity to make people happy, relax and unwind.

Film festival n.a. Valentina Leontieva “With all my heart”

Volga regatta in Ulyanovsk

Regular bike rides

Karting Hall

7 june 2015 LEISURE

GREAT VICTORY THROUGH THE EYES OF CHILDREN

In preparation for the holiday we arranged a contest of children’s drawings to commemorate the war and the victory and teach a lesson

in historical memory to the younger generation.

The contest entitled “None Has Been Forgotten, Nothing Has Been Forgotten” was announced

among the children of staff members of the Ulyanovsk Region Development Corporation and its affiliated companies. We were pleasantly surprised that children of different age groups turned in their work. Eleven works of art were submitted by children aged 3-14. The works were very different and interesting. Some drew the victory fireworks and happy faces of soldiers, others remembered the fallen heroes, depicting a monument to those missing in action, yet others showed the moment of a mother saying

good bye to her child as she was leaving to go to war.

When the time came to assess the works, the judges decided that every participant deserved a prize. All the participants received their diplomas and creative gifts: certificates to attend a workshop where the children will try molding clay figures and decorating them in Gzhel style.

In May our country celebrated the most important holiday for all Russians, the 70th anniversary of the Victory in the Great Patriotic War. All of us remember the great feat of the Russian people in that terrible war that affected every Russian family. All of us owe a debt of

gratitude to our veterans and soldiers, those who died at the war and those who are alive today.

8 june 2015 SOCIAL PROJECT