No Preferences for Particular Industries
The regional cluster policy is already bearing fruit today. For the regional leadership, cluster is not just a fashionable word, but primarily a tool to cut infrastructure costs. The automobile industry, pharmaceuticals and logistics have become the flagships of development in the Regional economy. This has taken place not so much because of the Region’s investment policy as because of the natural logic of development of these industries. Global and local manufacturers, providing the necessary production processes, always stick to a major manufacturer like seashells to a ship’s bottom. A clear example of this is the auto-cluster, where anchor motor car producers were immediately followed by motor car component manufacturers. The same will happen in pharmaceuticals.
Anchor motor car producers were immediately followed by motor car component manufacturers.
I stress that we have no preferences as to industry. The influence of the Region’s leadership on industrial structure amounts on one hand to intensifying the dominant trends and the development of their specialization, and on the other, to diversifying the economy. No investor in the Kaluga Region has ever been told: “You know, we don’t like your industry profile, go to some other region…” We welcome all projects. Our philosophy is that the authorities should create exceptionally favorable conditions and a good business climate for the activities of every investor, regardless of what industry he represents.
Any Investment is Important
Speaking of cluster strategy, we have in mind not only and not so much concentration on a particular industry. A cluster is something much more profound. It is a whole system of interconnected components: a full-value business environment, which includes R&D, special services, single-industry companies and of course education. Eight industrial parks have now been set up in the Region, and they are all absolutely different. Those such as “Rosva” and “Grabtsevo” concentrate more on the automobile industry. “Vorsino” is a general-purpose park, where logistics and other projects could be developed.
We offer projects which investors can understand:
• the line of products we offer covers any requirement of investors;
• this includes industrial parks located in different parts of the Kaluga Region, absolutely different in specialization, with industrial sites and all the necessary infrastructure;
• and the “A-Park” and “B-Park” projects, offering brownfield sites. These are primarily for investors pursuing a “light assets” policy.
Everyone who wishes will find opportunities for pursuing his interests, reliable business partners, friendly relations and the cooperation of the authorities.
A solution which improves the business process and makes it more efficient is important for the Region. That’s what investment is. Any investment, whether of capital, effort, knowledge or competence in improving business processes, is very important. The period of limitless access to labor resources has come to an end. Accordingly, high-productivity projects now take priority. The Kaluga Region is developing rapidly in the field of innovation. The Region holds third place after Moscow and the Moscow Region for the number of applications to ROSNANO (The Russian Nanotechnology Corporation). Two factories are already being built with ROSNANO participation: the NIARMEDIK pharmaceutical company and a company which will be concerned with producing proteins. In the next ten years, there will be a technology revolution connected with new power sources.
We do not divide investors into large and small ones. We will work with anyone as a single project team.
In the Region’s traditional industries such as transport engineering, power generation, electronics, control systems and the defense industry complex, many up-to-date efficient enterprises are being developing intensively. The main job for the leadership is to arrange matters so that in implementing modernization programs, these enterprises feel the full measure of the Region’s support. The government has already produced sets of measures and stimuli intended to solve three key problems of traditional industry: renewing the stock of technical equipment, improving the quality control system and most importantly, the professional education of personnel.
Robert ABDULLIN,President of the World Organization of Creditors (WOC):– Of the five leaders in attracting direct foreign investments (DFI) in 2010, the Kaluga Region is the only region which has doubled this indicator by comparison with 2009. It should be noted that 24% of DFI invested in the rural economy of Russia goes specifically to the Kaluga Region. As we see, the economy of the Region continues to develop quite successfully on the “Singapore” model.
The building materials production field is becoming significant. Here there are already many successful projects: the “Gras” gas-concrete production factory, “Fels-Izvest”, the recently opened “Kiilto”, “Lafarge” now under construction, the “Eternit” fibre-cement panel production enterprise, the projected cement factory in Maklaky and a whole lot of other enterprises. Interesting projects are being developed on the basis of the former brick factory at Vorotynsk.The Region’s sphere of interest includes a large number of projects in tourism. The tourist centers “Etnomir”, “Safari Park” and “Bird Park” have become popular far beyond the limits of the Region. And there are many such examples.
Nikolay ZETTSER,head of the car tire subdivisionand member of the Board of Directors of Continental Tires:– In favor of our new site in the Kaluga Region, there are such factors as good infrastructure, convenient geographical situation, and also positive experience of attracting investments.
It is of great importance for the years ahead to export educational services and to include all lines of products in education, beginning with elementary professional education and ending with the Master’s degree programs in our universities. This is a limitless field for capital investment and for the cooperation of our universities with leading international ones.
The agrarian sector is a huge economic opportunity. This is a colossal reserve, to which the Region’s government is devoting the maximum attention today. The “Detchino” industrial park is developing successfully. Producers of agricultural equipment such as “Grimme”, “Lemken”, “Wolf Systems” and “EkoNiva” have already located their enterprises there. “Big Dutchman”, an enterprise for developing and selling animal husbandry systems, is up and running since the end of June. The development of the rural areas is near the top in the rating of the tasks facing our Regional government today. After all, the rural economy is the basis of life for many people. It is an integral part of our history and our future. Therefore we shall be particularly happy to see investors coming into these areas.
Yury RUSANOV,CEO of “GRIMME-RUS Ltd.”:– I consider that the main principle of interaction between investors and the government of the Kaluga Region is the fact that the leaders of the Region were able to give us, investors, complete freedom of choice. Undoubtedly, we are trying to operate and fulfil our objectives by our own efforts. However, without the support of the government, without confidence in tomorrow, we would not have been able to develop so successfully.
We Have No Unsuccessful Projects
One of the key tasks is the further diversification of the Regional economy. This is important for our stable development in the future. We are always open for a direct and honest dialog with business. We have something to offer it, namely a finished and understandable product: industrial parks with all the necessary infrastructure, risks reduced to a minimum and tax advantages. We do not divide investors into large and small ones. We will work with anyone as a single project team. The basis of our investment philosophy is trust in our partners, a complete absence of administrative barriers and a guarantee to fulfil all the obligations we undertake. We have no unsuccessful projects because we care about every investor as good as parents do about their children. Honesty is the basic criterion of our relationships. We value our reputation and do not make empty promises. Sometimes, when we can’t do the impossible, we say “NO” to an investor. But if we say “YES”, then everything that has been promised will be completely fulfilled. The investor understands this approach.The Region is seeing the arrival of more and more investors whose manufacturing activities contribute to the growth of the Region’s economy, and consequently are raising the living standards of the population.
We have created a comprehensive system of development institutions:
• The Ministry of Economic Development of the Kaluga Region, which forms the Region’s investment policy;
• “The Regional Development Agency”, whose main tasks include organizing negotiations, forming proposals for investors and seeing investment projects through;
• “The Kaluga Region Development Corporation”, which facilitates the technical and technological aspects of investment projects, management and setting up of the engineering infrastructure in industrial parks;
• “Industrial Logistics”, which is the main means of carrying out logistics projects on the Region’s territory.
The manufacturers, in turn, value cooperation with the authorities, who support the activities of investors at every stage of the production process, and this sort of dialog and efficient relations will undoubtedly lead to the growth of the economy and the prosperity of the Region and of the country as a whole.The Kaluga Region is active in external economic relations. Together with Germany, France, Sweden, Italy, South Korea, the USA and other countries the Region is carrying out projects in the fields of industry, energy and resources conservation, tourism, culture and education.In brief, in the Kaluga Region, everyone who wishes will find opportunities for pursuing his interests, reliable business partners, friendly relations and the cooperation of the authorities.
We have produced a packet of financial measures:
Regional laws regulate the procedure for the provision of tax benefits to investors. The benefits consist of subsidizing profits tax and reducing the property tax rate.
We have created an investment culture:
• we guarantee equal attitude toward all investors;
• we are creating a unified “project family” working for the common success of the Region and the investor;
• our common aim is to carry out investment projects in as short a time as possible. Administrative support and the absence of bureaucratic barriers ensures rapid coordination procedures;
• our investors are not subject to any restrictions in carrying out projects;
• we are totally open and accessible: investors have the cellphone numbers of the Region’s leaders.