Russia Creates Industrial Hubs to Attract International Manufacturers
MOSCOW, May 16, 2013 /PRNewswire/ -- Russia has plenty of natural resources to offer to the global market, but recently the country started promoting its new and exciting product – consumers. With population topping 140 million people, Russia has always been an attractive market, subject to the poor economic climate and other barriers. In 2012 and 2013, however, Russian government formed 'special economic zones' – business and industrial hubs aimed at creating 'entry points' for global companies that incorporate production capacity, abundant natural resources, labor pool, infrastructure, tax incentives, and access to the consumer market.
The Titanium Valley, one of the 'special economic zones' is located in the Urals, Russia's industrial and mining heartland. The region is home to the world's largest titanium production facilities; titanium is an essential material widely used in aircraft manufacturing and other industries. The special economic zone, by attracting major Russian and Western aerospace corporations, is creating a unique industrial hub similar to Seattle. Major aerospace companies, like Boeing, VSMPO-AVISMA, and other companies became the residents of the Titanium Valley.
In a roundtable hosted by the economic zone's management in Hannover during the 2013 Hannover Messe, Titanium Valley's CEO Artemiy Kyzlasov said that the hub is becoming an entry point into Russia for multinational corporations: "It has tax breaks and customs relief, optimization of logistics and excellent skilled labor potential. We are not only interested in investment in the region, but rather in a system for integrating international manufacturing in the region's infrastructure, with every new special economic zone resident creating benefits for the other residents, developing and enhancing the production chain. Both the regional and federal governments support this. You could say that we are building an aviation and manufacturing Hollywood here, where all the industry players – directors, actors, models, screenwriters – are concentrated in one area, educating one another."
SOURCE Titanium Valley