International brands, first billion and a rating position among the best special economic zones in the world
Analysis of over six hundred zones from hundred and twenty countries conducted by experts of British edition of Foreign Direct Investment in 2012 allowed to assign to the SEZ “Alabuga” a place among top 40 zones list. Such a recognition from professionals in investment field contributed to the impressive development pace of the SEZ “Alabuga”.
Just six years ago, it seemed unlikely that a Greenfield near the town of Yelabuga will turn into an industrial site with operating factories of world-known international and Russian companies.
However, the fact remains that the unprecedented tax and customs preferences, low prices for raw materials and energy, prepared industrial infrastructure and a lot of attention to each project by the President of the region allowed the SEZ “Alabuga” very quickly to make its mark on the international stage as a serious business partner. As an accomplishment of these years of hard work “Alabuga” raised up to one billion dollars of investments.
These are the investments of private companies that obtained a resident status of the SEZ “Alabuga” and put up a construction and brought in equipment to their own plants. So far one billion invested, three thousand jobs created which are main indicators of the effectiveness of the Special economic zone.
Above all, it is worth noting that in outgoing 2012 the SEZ “Alabuga” introduced a new bonus for investors. Earlier this year, Tatarstan Parliament has approved an additional tax credit for resident companies. Subsequently republican part of income tax was set to zero percent for five years since tax base introduction date.
Also in the current year second development stage of the SEZ “Alabuga” was officially unveiled for its full use for construction purposes. And the managing company by 2014 plans to increase the total area of the Special economic zone by preparing third development stage territory with up to 4000 hectares or 40 square kilometers. To imagine the whole scale of the project it is noteworthy that famous English city of Cambridge is of the same space.
As already mentioned, one of the key indicators of the special economic zone’s success is a number of attracted investors. In 2012, the managing company of the SEZ “Alabuga” reached an agreement with 12 investors with a total announced investment volume of 14.3 billion rubles which is half a billion USD. Among them: international brands like 3M and Armstrong that over many years made it into the “Fortune” list of the world largest corporations.
Invaluable in choosing the SEZ “Alabuga” as a site for the production is a meeting with potential investors during an event: “The success story of the SEZ” Alabuga”, held on September, 2012 in Moscow. Positive evaluation of the Special Economic Zone, obtained from direct participants of the event: President of the Republic of Tatarstan Rustam Minnikhanov, Vice-President of “Sberbank” Sergey Borisov, President of American Chamber of Commerce in Russia Andrew Somers, as well as executives of residents, persuaded a number of companies to sign an agreement on industrial activity and allowed to open a constructive dialogue with a number of potential new investors.
On current rate of investment activity by the end of next year the total number of residents will increase to 45. According to a long-term development strategy of the SEZ “Alabuga” until 2020 the SEZ will gather up to 120 resident companies with a total investment volume of $ 12 billion which will turn the site into a powerful industrial center.
The managing company in the current 2012 along with organizing a direct contact with investors and building up of an industrial infrastructure came up with a strong and consistent work with employees, future residents’ personnel and the managing company. Top managers of the SEZ “Alabuga” shared with high school and college students of Yelabuga, Naberezhnye Chelny and Kazan their own working experience and put forward to think about the beginning of their own careers. About one hundred best students of them were invited and passed internships at SEZ “Alabuga”. As for 2013 plans, the company will continue to work with young specialists. The best of the students will have practical internships in overseas factories and will have an opportunity to be employed in the SEZ “Alabuga” factories.
A tremendous value in reporting the advancements of the Special economic zone “Alabuga” belongs to mass media. The activities of the managing company, opening of factories, new residents are great news hooks, actively replicated by local, federal and foreign media. The managing company will continue to pursue a policy of openness and transparency of information, and will render all possible assistance to journalists in organizing press tours and preparing materials about the Special economic zone “Alabuga”.