Nemak Rus Plant to Launch New Project and Create Additional Jobsin Ulyanovsk
This was announced by Anatoly Luzgin, Director General of the enterprise, during the meeting of the regional Government chaired by Governor Sergey Morozov.
Sergey Morozov noted, “In the difficult global situation, which negatively affects economy, we seek to support business and to implement new mechanisms for investment stimulation. We introduced the status of a regional investment project in the Ulyanovsk region; its participants are provided with reduced tax rates for income tax: to 10% when paying to the regional budget and to 0% in case with the federal one. Now we have suggested a new initiative to set the tax rate on the real property of an organization to 0%, which will be effective up to 31 December, 2028.”
Nemak Rus located in the industrial park "Zavolzhye" manufactures automotive components - engine cylinder blocks and heads.
“We think highly of the investment climate created in the region and support development of new tools to stimulate investments. We are thinking of expanding production for two new products next year - cylinder heads and blocks for Hyundai. Additional investments into the project will make about 2 billion rubles. About 120 new jobs will be created,” - Anatoly Luzgin said.
The company has been working in the Ulyanovsk region since September 2015. The plant was the first project of Nemak Corporation in Russia and its 35th production facility in the world. The company's clients include the world leading car manufacturers such as Volkswagen and Škoda. The investor has already provided the economy of the region with more than 2.3 billion rubles.“The enterprise currently employs about 200 residents of the region. The company made a substantial capital investment in the development of production (65 million rubles) last year and is planning to invest 42 million rubles this year. Participation in the new Hyundaiproject will allow the Ulyanovsk plant to double its revenues, which will also increase income to the budget,”- said SergeyVasin, Director General of Ulyanovsk Region Development Corporation.