Togliatti area open for investments

The local government authorities of the city district of Togliatti are continuously carrying out the actions aimed at converting Togliatti into more appealing and attractive environment for investors, providing stable conditions for investment activities and growth of the city’s investment potential.

The approval of the Comprehensive Investment Plan envisaging capital investments into the municipal and regional projects, aimed at the city’s development, amounting to nearly 130 billion RuR before 2020, has become an important landmark in the city’s development and increase of its investment appeal.
Approximately 40 billion RuR of this amount are the funds of different budgets, invested into the structural reconstruction of the labour market, the establishment of transport, engineering and social infrastructure, including other spheres of development that for various reasons have difficulties in attracting the initial investments.
From the viewpoint of prospective influence onto the city’s economics the following projects are considered to be the most capital-intensive and at the same time most significant ones:

Industrial Special Economic Zone "Togliatti"

Special Economic Zone of industrial/production type was established following the Resolution of the Government of the Russian Federation no. 621 of 12.08.2010. This is a principal investment project of federal significance which offers exclusive conditions for starting and developing business to major Russian and foreign investors.

Pre-conditions for the establishment of Special Economic Zone:
- high industrial potential of the region;
- high investment appeal of the region;
- high labor market potential;
- beneficial economic and geographic location and availability of powerful logistical infrastructure.

The key advantages of launching production on the territory of the Industrial Special Economic Zone "Togliatti" are preferential taxation, free customs zone regime, availability of all types of utility networks, including free access to such networks, and a special administrative regime. Moreover, beneficial location of the Special Economic Zone provides access to well-developed infrastructure, with the system of international transport corridors.

The point of reference to the development of the SEZ was in January 2011, since the affiliate of JSC Special Economic Zones in Samara region was registered in December 23, 2010. The SEZ-related activities are organized in two directions: attraction of prospective resident companies and infrastructural design/construction activities in the SEZ.
On the first direction, three companies were awarded the status of SEZ in 2011, with the total investment liabilities amounting to 1.33 billion RuR.

1. Slovenian-Russian enterprise TPV Rus LLC (production of auto components and auto seat assemblies);
2. Zhelenzy Potok LLC (production of changeable multifaceted powder-metal plates);
3. Rulevye Sistemy Plus LLC (production of steering systems for passenger vehicles).

On the second direction, a number of contracts were concluded in 2011 for design work of the site and infrastructure of SEZ, amounting in total to 155,9 million RuR.

In October 2011, part of the site (20 ha) was graded, and 4000 cu.m. of unsanctioned construction debris were removed. Temporary connections were made to the electric power supply network, the construction camp, along with temporary fencing, was improved, and 7324 sq.m. of temporary access roads were laid.

For the period 2012-2014, the main construction phase of the SEZ infrastructure is planned. The first residents of the SEZ will commence construction of their own production facilities during the second quarter of 2012.

Reference information on Hi-Tech Industrial park Zhiguli Valley 

On the project

“The activities of the special economic zones, industrial parks and tech-cities should assist in dissemination of new advanced industrial standards, efficient models for integration of education, science, real economy and business”.
V. Putin

The Hi-Tech Industrial Park Zhiguli Valley is established as a part of the State Program “On establishment of high technology parks in the Russian Federation”. The Industrial Park project is aimed at encouragement of favorable environment for the innovative development and modernization of economy in Samara region, creation of new jobs, and diversification of economy of Togliatti, integration of science, education, financial institutions and entrepreneurs. The goal of the Industrial park is to render assistance to projects and businesses operating in hi-tech spheres, on all stages – from generation of ideas to final product.

The target areas of Industrial Park are defined to fit in with the key directions for modernization of the Russian economy.

Industrial Park clusters

1. Transport and aero space technologies
a. Technical solutions on the basis of GLONASS satellite technologies. Navigation systems;
b. Aeronautical and aerospace equipment with use of new process solutions;
c. Transport vehicles powered by alternative types of fuel;
d. High-speed land transport based on new   principles of motion;
e. Systems of traffic safety.
2. Information and telecommunication technologies
a. Introduction of modern information technologies into automotive industry, engine-building, aerospace and petrochemical industries;
b. Development of software in the sphere of strategic information technologies, including computer-aided process modeling.
3. Energy efficiency and conservation
a. Introduction of energy saving technologies in real economy sector.
4. Chemistry, new materials
a. Creation of revolutionary materials with unique properties;
b. Nanotechnologies.

Infrastructure and conditions

The residents of the Industrial park will have access to the utility infrastructure, easy terms and conditions to use office, laboratory, and production facilities, as well as the services of the business incubator, data-center, equipment-pool center, and call-center. Infrastructure will be provided for carrying out of large-scale business events and meetings, including international meetings.

For convenience of the residents, a number of service companies will be presented at the site of the Industrial Park: legal, accounting, and personnel agencies, allowing residents to outsource some of their activities to professionals.

Project support system

Thanks to comprehensive interaction with the federal, regional, and municipal authorities and development organizations, the Industrial park will render assistance to the residents in arranging financing and development of projects. In particular, the residents will be invited and assisted in their participation in federal and regional programs for support of innovative programs and entrepreneurial activities.

Moreover, our residents may use the tax benefits (profit, property, transport taxes), receive subsidies and compensation of costs as part of the innovative activities.

Assistance will be arranged to the residents in search of prospective sites at the existing plants and enterprises, for pilot manufacturing of test sample products.

Business environment

One of priority goals of the project is the creation of business communicative environment within clusters, specifically: organization of interaction between residents, investors, state authorities, organization of professional communication by cluster activities, with participation of the leading Russian scientists and representatives of major international companies with many years of business history and experience of innovative development. Their participation in the project will encourage the flow of new international projects and competence to Togliatti, and provide placement of orders for innovative projects for the residents of the Industrial park.  For this, the anchor residents are being identified and invited; together with them, four focus clusters will be established: transport and aerospace developments, IT and telecommunication, energy saving and conservation, chemistry and new materials.

At the moment, Agreements are signed with such companies as Siemens IT Solutions and Services, SAP CIP, IBM Eastern Europe/Asia.

Industrial park construction progress

Presently, the first stage of construction activities at the Industrial park is under way, with commissioning of two office-and-lab facilities, main business center with a business incubator, the production facility covering in total over 30 000 sq.m. projected for summer of 2012.   The second stage facilities are planned for commissioning, as per the Regional Task Program, in 2014. The total area of the Industrial Park will exceed 55 000 sq.m.

Search and selection of residents

The Industrial Park Manager – CJSC Innovative center Zhiguli Valley, extensively searches and selects the prospective residents among local and foreign companies. It also cooperates systematically with innovative start-ups.

Following the results of the first three meetings of the Expert Board, twenty three projects were approved. The first residents appeared with all four clusters of the Industrial park, with most of them operating in the It-sector. The residents’ projects are to be accommodated in the lab and production facilities. More than a half of all areas to be commissioned this year are already reserved.

Industrial Park’s partners

As of today, 53 letters of intent are signed with the industry leaders, such as Progress Design-and-Engineering Bureau, Aviakor, JSC Kuznetsov, JSC Megafon, Rostelecom.

As a part of the Agreement of cooperation signed between Samara region and Skolkovo Foundation of development and commercial implementation of new technologies, the Industrial Park builds complex cooperation with the Foundation. Skolkovo considers Zhiguli Valley a regional partner playing a role of a technical and a launching base for engineering of Skolkovo residents’ projects. In its turn, the Industrial park and its residents are interested in being a part of Skolkovo community, to get access to consultancy and information support of the Foundation’s specialists, attract foreign investors for Skolkovo project, for exchange of international experience and joint implementation of projects.
The negotiations on joint project works are in progress with VnesheconomBank, Russian Venture Company, ROSNANO, international companies ANO Modernization, a number of regional banks, and higher educational institutions of Samara region, international industry leaders, with Cisco Systems and Global Innovation Access, Hewlett Packard, Microsoft, Huawei, Schneider Electric, Siemens Enterprise Communications, and Dassault Systems Russia Corp.

In its activities, the Industrial park builds cooperation with other industrial parks of Russia, and acts as a co-founding member of the Association of hi-tech industrial park.

Moreover, the Industrial park actively cooperates with the production-type Special Economic Zone of Togliatti. The residents of the SEZ may accommodate their engineering centers, R&D centers at the facilities of Zhiguli Valley. At the same time, the Industrial Park acts as a supplier of residents for the SEZ by transferring some projects ready for commissioning and placement into operation.

Training of qualified specialists for the residents of Industrial park makes cooperation with the universities of Samara region especially important. Following the recommendations of the President of Russian Federation during the 26th session of the Presidential Committee on the issues of modernization and technological development of Russia, on encouragement of business in its participation in modernization of laboratories and procedural framework of the universities, development and introduction of educational programs, and formation of education standards, the Industrial park positions itself as a site for integration of science/research institutions, on one side, and hi-tech business, on the other side. In its joint work with the educational institutions, the equipment pools and base cluster labs are planned to be established, training programs for the specialists needed for modernization and process development of regional economy are envisaged; field-specific studies for university students are elaborated, for further engagement in the innovative businesses within the framework of the Industrial Park cluster industries. Besides, Zhiguli Valley will become a comfortable site for small-scale innovative businesses emerging on the science/research facilities of colleges and universities where they would receive help in project development and drawing of financing. At the moment, the list of members of the Industrial Park includes Samara State Aerospace University, Samara State University of Transport Communications, Volga region institute of telecommunications and information science,  Samara State Technical University, Togliatti State University, etc.

In other words, the Hi-Tech Industrial Park Zhiguli Valley should turn into a “growth point” of the region’s innovative economy and a center of coordination for hi-tech projects for the development entities, enterprises, and science/research institutions.

All presentations are available on the Investment web portal of Togliatti