Special economic zone «Alabuga»
«Polypropylene 2009»
The Special economic industrial zone “Alabuga”was created on December 21, 2006 in theRepublic of Tatarstan
In the center of the largest industrial region 800 km to the east of Moscow
�Territory – 67 800 km2
� Population – 3.8 mln.� GRP – USD 26,7 bln.� Industrial output – USD 26 bln.� S&P rate - BBB+� Moody’s rate - Baa2� Fitch - IBCA - BBB+
One of the most developed regions in the Russian Federation
Economic industrial structure of the Republic of Ta tarstan
“Free customs zone” regime
Foreign countries Russia
Machinery and partsNo VAT – 18%
No Import duty – 10%
SEZ “Alabuga”
Investment incentives and preferences
Title
1. Profit tax for the residents2. Property tax for the residents3. Land taxfor the residents4. Transport taxfor the residents
Taxation rate
20.0%15.5%2.2%0%1.5%0%
USD 0
from USD 0.3 to USD 3.8 (per a horse-power)
Land plot rent and purchase
Rent:USD 0.05 for m2
per year Purchase:USD 0.12 for m2
10 ha area
Rent:USD 4.800 per year Purchase:USD 11.800
Infrastructure
Governmental donation up to USD 650 mln. until 2011.
USD 300 mln. was already invested.
� Industrial infrastructure� Customs infrastructure� Business infrastructure
�Ministry of Ecology and Natural Resources�Ministry of Labor and Social Security�Service of Environmental, Technological and Nuclear Oversight�Federal Real Estate Cadastre Agency�Social Insurance Fund�Fund of Obligatory Medical Insurance�Inspection of State Architectural Building Supervision�Registration Service�Chamber of Commerce and Industry�Tax Service�Customs Service�Migration Service�Pension Fund�Certification Test Center�Technical Inventory Bureau
Single window system (One Stop Shop)
Manpower resources of the Kama industrial centre(Naberezhnie Chelni, Nizhnekamsk, Elabuga, Mendelee vsk)
� 29 Institutes of Higher Education� 28 Specialized Schools and Colleges� 20200 Fresh Specialists annually, among them:� 780 Mechanical Engineers� 500 Chemical Engineers
Monthly manpower costs with taxes*:
�Labourer – USD 340 �Skilled Worker – USD 560 �Engineer – USD 1030
*Source: PricewaterhouseCoopers
Most major Russian carmakers are located within 500 km from the SEZ “Alabuga”
Polymers produced within 400 km from the SEZ “Alabuga”
Dynamics of polymer price index change (RUB)
Source: Plastinfo.ru
Major projects of oil and gas industry being realized in the Republic of Tatarstan
PETF - 300 000 MT Start - 2010
PE - 230 000 MT PP – 180 000 MTPS - 150 000 MTStart - 2011
Technical gases (oxygen, nitrogen)80 000 MTStart - 2009
Glass fiber and fiber based goods20 000 MTStart - 2009
Ammonia – 717 000 MT Carbamide – 717 000 MTAmmonia nitrate – 380 000 MTStart - 2012
Cost of project realisation
Project realisation
Is in average 40 % lower
Cost of construction works is 30-40 % lower (USD)
Cost of construction materials is 35-40 % lower (USD)
Cost of labor force
21142 2298828373 29400
31500
47000
1500020000250003000035000400004500050000
Unemployment rate in the
Republic of Tatarstan
55 % increase 41 % decrease
Source: Ministry of labour, employment and social security of the Republic of Tatarstan
350400450500550600650
Salary rate in the
Republic of Tatarstan (USD)
1st stage of industrial park construction completed
• production area 107 000 sq. m.
• administration-housing areas 31 000 sq. m.
• 127 resident companies
• total annual turnover - 3,3 bln. rubles
2nd Stage
• additional 100 000 sq. m.
• total investments 1 bln. rubles
• over 1500 new jobs
Kama Industrial Park “MASTER” Inc.
MASTER
ADVANTAGES FOR TENANTS:
- Availability of production and office areas
- Low rent rates
- Highly developed infrastructure
- OAO«KAMAZ» preferences
Rent rates:
- Office area – from 80 rubles per sq. m.
- Production area – from 66 rubles per sq. m.
Kama Industrial Park “MASTER” Inc.
MASTER
PROJECT PLANNED INDEXES
Total investment
Planning period
Investment return period
Production facilities*
Tax revenues*
Number of jobs*
Number of residents*
12,5 bln. rubles
10 years
6-7 years
16 blrd rubles a year
3blrd rubles a year
10 000 (jobs)
200 companies
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* (upon reaching the planned production capacities)
Thank you for your kind attention!
Contacts:
Investor Relations Department:
Tel: +7 (85557) 5 90 23
Fax: +7 (85557) 5 90 01
E-mail: [email protected]
www.alabuga.rosoez.ru