Dimitrovgrad Automotive Components Plant to Create Competence Center for Non-Ferrous Casting
On 13 March, Governor Sergey Morozov and Sergey Kogogin, Director General of PAO "KAMAZ", visited Industrial Park “DAAZ” (Dimitrovgrad Automotive Components Plant), inspected capacity of Dimitrovgrad Industrial Park "Master" and discussed future development of the plant.
Sergey Kogogin said, “We have promising plans for development of the Dimitrovgrad Automobile Plant. KAMAZ is currently at a very interesting stage of its development. We are changing the range of cars; we have finished reconstruction of our own production facilities and have decided to resume the outsourcing programme. We are going to complete several projects in Dimitrovgrad; the city has really good specialists in stamping and metallurgy sphere. In addition, there will be internal outsourcing. Why give tasks to someone else if you can transfer them to your subsidiary enterprises? We intend to create a competence center for non-ferrous casting here, and we will transfer both the range of items and equipment from KAMAZ. We are also ready to place a block of small and medium-sized stamping here. We are going to use capacities of the tool plant for production of fixing hardware and rotation workpieces. According to our calculations, we will double the workload of equipment at DAAZ by transferring and shutting down this production in Naberezhnye Chelny.”
According to Sergey Morozov, one thousand new jobs will be created thanks to the new industrial sites in Dimitrovgrad.
The head of the region said, “In addition to the residents who already work with us, there are dozens of investors who are willing to open new facilities. Support of personnel is also an important topic. We are planning to re-train DAAZ employees in skills demanded by the market at the expense of our budget; for example, the ones required by employers in the industrial park. Adjustments to investment agreements will be made with regard to the priority employment of such re-trained workers. In addition, we have found solutions to improve infrastructure. The plans include repairing roads near DAAZ and in the territory of the enterprise, as well as adjusting networks. We hope to receive support from the Monotowns Development Fund to complete these tasks.”
During the visit, the head of PAO "KAMAZ" also got familiarized with work of residents of Dimitrovgrad Industrial Park "Master".
“I highly appreciate how Dimitrovgrad Industrial Park "Master", our joint project with administration of the region, is developing. Governor of the Ulyanovsk Region Sergey Ivanovich Morozov provides us with amazing support, which is the key factor for our success. We see no other way to optimize DAAZ production costs and areas. I believe that our joint activities will attract small, medium-sized and even large businesses to this site and create comfortable conditions for them, - Sergey Kogogin stressed. - Modern facilities do not require such a large number of people and are highly automated. We will solve the issues connected with optimization of production space at DAAZ with the help of our resident partners. With the support of the regional administration, local management has made a competent decision: when leasing out premises to our partners, they sign agreements that they will prioritize hiring specialists of the Dimitrovgrad Automotive Components Plant.”
Dimitrovgrad Industrial Park "Master" began working at empty areas of DAAZ in 2018. Kamsky Industrial Park “Master” (subsidiary of KAMAZ) and the Ulyanovsk Region Development Corporation are founders of the park. The Government of the region actively participates in implementation of the project, which includes financial support. In 2019, 44 million rubles were allocated from the regional budget for development of the park infrastructure; it is planned to use about 100 million rubles in 2020. In addition, this facility receives federal support: 500 million rubles will be allocated for development of Dimitrovgrad Industrial Park "Master" in 2019-2020 (250 million rubles from federal funds have already been allocated in 2019).
Currently, 200 people work at the enterprises of residents located in the park - "Polesye DG", "Torsion-D", "Prisma", "AVP Rotang", Dimitrovgrad Steel Reinforcement Plant and other companies. A large part of production areas is occupied by Polesye, a manufacturer of children's toys. It is planning to purchase additional 28 thousand square meters. Next year, about a thousand specialists - residents of Dimitrovgrad - will work in the park.
According to experts of the Ulyanovsk Region Development Corporation, now about 20 companies that were offered production space in the park "Master" are in the process of negotiating. These are small and medium-sized businesses working in different spheres connected with manufacturing of cable products and metal doors, unmanned aerial vehicles, machine-tool building and agriculture.