New special investment contract in the sphere of automotive industry to be implemented in the Ulyanovsk region

On 15 May during the regular meeting of the Interdepartmental Commission on assessing the possibility of conclusion of special investment contracts (SPIC), a special investment contract with OOO "SOLLERS-ISUZU" has been approved. The meeting was chaired by Vasily Osmakov, the Deputy Minister of Industry and Trade of the Russian Federation.

 

Following the results of the meeting, a decision was made to support implementation of three investment projects within SPIK. Two of them are in the sphere of automotive industry and one - in the farm-machinery industry.

The total investment into the project, which is to be implemented in the Ulyanovsk region, will exceed 6 billion rubles. The substantial proportion of this money will be used for research and development of new technologies. Under implementation of the project, it is planned to ensure localization level of over 80%, which includes engines, gearboxes, frames, electronic management systems for engines, ADAS systems, and other components. Russian casting and materials will be used within the project in addition to localization of components and assemblies.

"The Ulyanovsk region provides full support in development of automotive industry, which is one of the priority spheres here. Assembly of Isuzu commercial vehicles was launched in the region in 2012. Today the enterprise produces a full line of trucks weighing from 6.5 to 33 tons; the model range includes almost 50 modifications. The production of SIMAZ buses on Isuzu chassis was also started in the region. The next step is co-production of cars of UAZ and ISUZU brands. This will allow to strengthen our positions in Russian and foreign markets", - noted Sergey Morozov, the Governor of the Ulyanovsk region.

According to Andrey Tyurin, the First Deputy Chairman of the regional Government,  SOLLERS (Russia) and ISUZU (Japan) have created a joint venture (OOO "ISUZU SOLLERS") for implementation of the project and development of technological partnership. They are planning to bring a new joint product to the market; this will be a medium duty truck with the high level of localization. The project also includes creation of a new hi-tech industrial complex at the industrial park UAZ (Ulyanovsk) to produce advanced models of cars under ISUZU and UAZ brands.

Since 2016, special investment contracts have become the key instrument for stimulation of investments into real production. According to the Deputy Head of the Federal Ministry of Industry and Trade of the Russian Federation, this mechanism was developed at the right time.

“The uniqueness of special investment contracts is that their implementation involves all key spheres of our industrial policy – from stimulation of localization, technological upgrade and development of export to import substitution, transfer of technologies and creation of new promising industries. These quite significant criteria are the first to be considered while reviewing applications on the conclusion of special investment contracts. This helps to exclude any subjective components during assessment of projects”, – Vasily Osmakov commented.

 

28.05.18