Aluminum Association
KRASNOYARSK TECHNOLOGICAL VALLEYS:
NEW OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN RUSSIA
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KRASNOYARSK REGION
> 460 companies with participation of foreign capital (2016)
KRASNOYARSK ALUMINIUM SMELTER : INDUSTRIAL LEADER OF KRASNOYARSK
Capacity > 1 mln. tonnes
• liquid aluminium • alloys (slabs, billets, ingots) • high purity aluminum
One of the largest regions in Russia
Industrial capital of Siberia
Extensive logistical network
2.87 mln people
2,367 thous. sq. km
1 579.1 bln roubles GRP in 2015
394.4 bln roubles investments in 2015
Krasnoyarsk Technological Valley
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OBJECTIVES
ALUMINIUM TECHNOLOGICAL VALLEYS DEVELOPMENT PROJECT
MARKET DEVELOPMENT AND STIMULATING DEMAND FOR ALUMINIUM-CONTAINING PRODUCTS
IMPORT SUBSTITUTION
CREATION OF FAVOURABLE INVESTMENT CLIMATE FOR NEW PRODUCTION FACILITIES
REDUCING RISKS FOR INVESTORS
DEVELOPMENT OF EXPORT
EXPANSION OF ALUMINIUM APPLICATION IN NEW SECTORS AND DESIGN OF NEW PRODUCTS
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Delivery of liquid aluminium and alloys
Land and property to lease (brownfield and greenfield)
Existing infrastructure
Competitive costs of utilities
Option for government funding and other financing
PROJECT CONCEPT
Tax and customs privileges
New opportunities for development
Access to the growing Russian and Eurasian Economic Union markets
Supply of aluminum produced with renewable energy
Opportunities for industrial and scientific cooperation with US RUSAL
6 Available land plots for new projects
close to KRAMZ industrial facilities
The first stage of the project is to be implemented using the readily available engineering, production and transport infrastructure
PROJECT SITE WITH READY-TO-GO INFRASTRUCTURE
1st stage 2nd stage
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INVESTMENT PROJECTS: OPPORTUNITIES FOR INVESTORS
Development of rolling mill production plant
Investments in the new aluminium wheels plant
Production of wide range profiles for transport and construction
Production of aluminium rondoles and tubes
Production of high purity aluminium oxide
Production of cookware
Manufacture of aluminum cables
Production of aluminum window frames and sandwich panel
Production of aluminium frames for snowmobiles and bicycles
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6,7
5,8
5,7
1,6
1,2
0,9
0,6
0,6
-0,3
-0,6
-1,0
-2,7
Литье, поковки, радиаторы
Диски
Плоский прокат
Металлоконструкции
Экструзия
вторичные сплавы
Трубы и трубки
Резервуары
Емкости, баллоны, тубы
первичный алюминий
Фольга
Кухонные приборы и радиаторы
MARKET GROWTH BY SECTOR, 2017 /2016, 2016/2015 (KMT)
3,8
1,2
1,2
0,6
0,4
0,2
0,1
-0,3
-3,6
Плоский прокат
Фольга
Трубы и трубки
Диски
Экструзия
Литье, поковки, радиаторы
Металлоконструкции
порошки и чешуйки
Емкости, баллоны, тубы
DYNAMICS OF IMPORT OF ALUMINIUM GOODS TO RUSSIA, 1H2017 (KMT, YOY)
TRENDS IN THE KEY SECTORS FOR CONSUMPTION IN RUSSIA (%, YOY)
DYNAMICS OF EXPORT OF ALUMINIUM GOODS FROM RUSSIA, 1H2017 (KMT, YOY)
108
-4
2
43
41
34
-8
4
-61
36
-100 -50 0 50 100 150
Перв.Al - Русал
Перв.Al - Другие
Втор.Al
Импорт п/ф
Экспорт п/ф
2016/2015 2017/2016
Exports of semis
Imports of semis
Secondary aluminium
Primary aluminium (others)
Primary aluminum (RUSAL)
1%
10%
1%
4%
9%
2%
-5%
8%
-5%
0,1%
-7%
1%
-10% -5% 0% 5% 10% 15%
2016 2017f
Casting, forgings, heaters
Light-alloy wheels
Flat rolled products
Metal structures
Extrusion
Secondary aluminium
Pipes
Tanks
Tubes
Primary aluminium
Foil
Kitchenware, radiators
Flat rolled products
Foil
Pipes
Light-alloy wheels and parts
Extrusion
Casting, forgings, heaters
Metal structures
Powders and flakes
Tubes
Industrial PMI Index
Automotive
Machinery
Construction
Cable production
Sales Turnover
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2016-2017 TRENDS: IMPORT RECOVERY AND GROWING EXPORT OF SEMI-FINISHED PRODUCTS
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LARGEST CATEGORIES OF IMPORTED ALUMINIUM PRODUCTS
SHEETS AND STRANDS FOR CONSTRUCTION ~ 20 thousand tons per year
ALUMINIUM FOIL ~ 25 thousand tons per year
STRUCTURAL SECTIONS AND CONSTRUCTIONS ~ 15 thousand tons per year
LIGHT ALLOW WHEELS ~ 40 thousand tons per year
CONSTITUTES OF FLAT ROLLED PRODUCTS, FOIL, CASTING, RADIATORS AND CAR WHEELS
ALUMINIUM COOKWARE ~ 10 thousand tons per year
HEATING RADIATORS ~ 50 thousand tons per year
>70% Import
138 thousand tons
VOLUME OF SEMI-FINISHED PRODUCTS IMPORTED TO RUSSIA
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KRASNOYARSK ALUMINIUM SMELTER – INDUSTRIAL LEADER OF KRASNOYARSK
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1,024 Kt of output in 2016
4,200 employees at the smelter
5,500 employees of contractors
No 1 UC RUSAL site in terms of output
2% of aluminium produced worldwide
The unique Green Soderberg process
25 potrooms
3 casthouses
Production of high-tech and innovative alloys
40% доля
высокотехнологичной продукции и
сплавов в общем объеме производства
KRAZ PRODUCTS
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Aerospace Electronics Transport Construction
KEY SECTORS:
40% of the total output are hi-tech products and alloys
PRODUCT SALES
EUROPE
Сitroen, BMW, Novelis, Constellium, Aleris, Montupet, Noble Group, Saint Jean Industries , Elval, Metalimex
ASIA
Toyota. Novelis Korea, Mitsui Co Ltd., Kosei Aluminum Co, Intelorg, Bluescope
AMERICA
Laurand Associates, Toyota Tsusho America , Beck Aluminum
• primary aluminium • alloys (slabs, billets, ingots) • high purity aluminium
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115 000 tonnes per year
> 2 000 employees
• slabs, billets, ingots, • wire rod, pipes, rods
and profiles, forging and pressing products
KRASNOYARSK METALLURGICAL PLANT
Plant has experience in supplying products for export for 30 years in more than 30 countries
PRODUCTS:
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AN EFFICIENTLY OPERATING SUPPLY CHAIN
ASIA
EUROPE
AMERICA
AFRICA
KrAZ
St. Petersburg
Novorossiysk
Vanino
Nakhodka
Moscow
Vladivostok Temryuk
5 000 km / 2 weeks from Krasnoyarsk to the major seaports
Well-developed road and rail network, as well as water transport infrastructure, have allowed the company to successfully serve both domestic and export markets over the last 30 years
SPECIAL TREATMENT OPTIONS FOR REGIONAL DEVELOPMENT
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KRASNOYARSK TECHNOLOGICAL VALLEY
SPECIAL ECONOMIC ZONE
Federal Law on Special Economic Zones in the Russian Federation (SEZ) or
Compliance with WTO standards, international laws and practices
SEZ: SPECIAL TAX BENEFITS FOR INVESTORS
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TAXES AND RATES RUSSIA SPECIAL ECONOMIC ZONES
Profit tax paid to federal budget 3% 2%
Profit tax paid to regional budget 17% Max. 13.5%
Property tax 2.2 0 (the first 10 years)
Land tax 1.5 0% (the first 5 years)
Rates of insurance premiums for mandatory pension
insurance 22 %
in 2017 – 8%,
in 2018 – 13%,
in 2019 – 20%
Rates of insurance premiums for mandatory social
insurance 2.9%
in 2017 – 2%,
in 2018 - 2.9%
in 2019 – 2.9%
Rates of insurance premiums for mandatory medical
insurance 5.1 %
in 2017 – 4%
in 2018 - 5.1%
in 2019 - 5.1%
SEZ: SPECIAL CUSTOMS REGULATIONS
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0% Import duties on equipment, components and materials imported into SEZ
0% VAT on equipment, components and materials imported into SEZ
0% Export duties on finished products exported outside the Customs Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan)
FREE CUSTOMS ZONE
• Promotion of development of industrial territories
• Support and concessional financing for new industrial projects
• Legal support for development of the aluminium industry (aluminium for automotive industry, infrastructure, energy industry, construction, etc.)
• Stimulating demand for products of Russian origin
• Support for localising new production industries in Russia
• Special Investment Contracts and guarantees for investors
MINISTRY OF INDUSTRY AND TRADE
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STRATEGY FOR DEVELOPMENT OF METALLURGICAL INDUSTRY ELABORATED UNTIL 2030
GOVERNMENT SUPPORT FOR ALUMINIUM INDUSTRY DEVELOPMENT
> 40 production
facilities and sites
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UC RUSAL: GLOBAL LEADER IN ALUMINIUM PRODUCTION
6.2% of global
aluminium production
61,000 employees around
the world
UC RUSAL has initiated the creation of technological valleys in Krasnoyarsk, Volgograd and Khakassia in order to promote innovation in industry
700 major clients
Supplying aluminium to all key markets: Europe, North America and Asia, Russia and other CIS countries
Main products:
primary aluminium
alloys aluminium foil and powder
44% share of value added
products in 2016
3.7 mln tonnes produced by
RUSAL in 2016
RUSSIAN ALUMINIUM ASSOCIATION
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The mission of the Association is to create optimum conditions for the development of the Aluminium Industry in Russia
http://www.aluminas.ru
MAIN FOCUS AREAS
Innovative industrial development in Russia, creating conditions for new facilities, technologies and products
Market development and expansion of demand
Development and improvement of regulatory framework
Standardisation and improvement of product quality
Educational programmes
70 Members
Technical Committee 099 Working group for standardization of aluminum-containing products
2015 Establishment of the Aluminium Association in Russia
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CONTACTS
For questions concerning the project please contact: 1) Igor Marchev – the Head of the project ([email protected]) 2) Vlada Usova – the Manager of the project ([email protected])