Nemak Rus Plant Becomes First Participant of Regional Investment Project
The decision was made on 18 June by the commission for the register inclusion application review.
Nemak Rus is a manufacturer of automotive components that is planning to implement a new project at its current enterprise in the industrial park "Zavolzhye". The project involves production of cylinder heads and engine blocks for Hyundai and Kia vehicles. More than 1.6 billion rubles will be invested. In addition, about 150 new jobs will be created for residents of the region.
“We highly appreciate efforts undertaken by the company during this difficult economic situation. We are very happy to hear that in addition to maintaining its operating facilities, Nemak Rus wants to continue expanding. This company is one of our largest investment projects, which has already provided the region's economy with about 2.5 billion rubles and created 200 jobs for residents of the Ulyanovsk region. Implementation of the new project for Hyundai and Kia will help Ulyanovsk plant to double its operating income and budget revenues,” - said Sergey Vasin, Director General of Ulyanovsk Region Development Corporation.
The grand opening of the plant took place on 11 September, 2015. This facility became the first project of Nemak Corporation in Russia and its 35th enterprise in the world. The company's customers include the world's leading car manufacturer such as Volkswagen and Škoda.
According to Nikolay Zontov, Acting Minister of Digital Economy and Competition of Ulyanovsk Region, the regional investment project is one of the priority areas for development of the region's business climate. He said, “The Ulyanovsk region currently has a wide range of tools to stimulate investments. The regional investment project mechanism will allow investors to implement their projects in the best possible conditions.”
The Ulyanovsk region provides participants of regional investment projects with the income tax reduction for revenues to the regional budget (up to 10%). In addition, the income tax rate for revenues to the federal budget will make 0%.
As a reference:
Nemak (Mexico) is one of the world leaders among suppliers of high-tech aluminum components. Thirty-five of the company's plants can be found in fifteen countries. Nemak's customers include 52 global car manufacturers such as Ford, Volkswagen, Renault, Hyundai and others. The company has about twenty thousand employees.