The SEZ «Аlabuga».

Analysis of over six hundred zones from hundred and twenty countries conducted by experts of British edition of Foreign Direct Investment 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.
In 2012 the SEZ “Alabuga” introduced a new bonus for investors. Earlier, 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.
The second development stage of the SEZ “Alabuga” was officially unveiled for its full use for construction purposes. And the managing company 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. 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 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”.

What does the Special economic zone «Alabuga» expect? Predicting the future is rather an ungrateful task, though the analysis of macroeconomic indicators, investment volume and last year positive practice statistics enables us to suggest that among operating and recently established special economic zones in Russia the SEZ «Alabuga» will maintain leading positions in key figures such as attracted and factual investments and number of created jobs.
The SEZ «Alabuga» will launch six new productions, including JSC «ZIO» (Russian manufacturer of power tools and equipment by «Interskol» company), CJSC «Trakya Glass Rus» (production of float glass by «Sisecam» holding), CJSC «Automotive Glass Alliance Rus» (production of automotive glass by «Sisecam» holding), LLC «SARIA Bio-Industries Volga» (production of meat-bone and animal fat by German «Rethmann» holding), LLC «Kastamonu Integrated Wood Industry» (MDF and particleboards producing plant), LLC «Alabuga-Fiber» (production of carbon fiber by «Composit» holding company). In a short period of time «Dzhoshkunoz-Alabuga», a company which recently (in November, 2012) obtained a resident status, plans to complete site and construction works and start the production.
The SEZ «Alabuga» will continue an active search of new investors. Today the managing company has built a constructive work with over 1000 companies specializing in manufacturing of various industrial products starting from engineering tools and chemical industries to light and food industries.
Development program of the SEZ «Alabuga» till 2020 presupposes that the SEZ «Alabuga» will host almost 120 residents, so, at least another fifteen companies will obtain a resident status till the end of the current year.
A particular attention will be also paid to social infrastructure development, because in addition to job positions with good wages, people will also need social benefits. A pilot project of the managing company the SEZ «Alabuga» in this regard will be the development of a residential complex for executives and employees of resident companies in the vicinity of the special economic zone. The territory of the complex will include an international school with education in English. The learning process will be organized according to a worldwide recognized educational brand.

Read more information about SEZ “Alabuga”.

CONTACTS
The Special economic zone “Alabuga”
b 4/1, SH-2 St., SEZ “Alabuga” area, Yelabuga municipal district, the municipality of “Yelabuga town”,
the Republic of Tatarstan, Russia, 423602

INVESTOR RELATIONS DEPARTMENT
Phone: +7 (85557) 5–90–30
Cell: +7 (927) 480–02–21
Fax: +7 (85557) 5–90–84
E-mail:
invest@sezalabuga.ru

Website:
www.sezalabuga.ru
eng.russez.ru/oez/industrial/tatarstan/

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