Ulyanovsk Region to Implement Three New Investment Projects Worth About 6 Billion Rubles

On 9 September, Governor Sergey Morozov held the first Investment Council in the post-pandemic period.


The head of the region said, “Today, the Council for Investment Activities reviewed three new projects worth about 6 million rubles of investments. They will create more than 200 jobs for residents of the Ulyanovsk region.”

Nemak Rus, a company from Mexico, will build a new production facility to manufacture cylinder block heads for car engines made by the South Korean company Hyundai. Investments will amount to 1.7 billion rubles, and 120 jobs will be created. This project is the first in the region to receive the special status of a regional investment project (RIP). Nemak Rus plant produces automotive components in the industrial park "Zavolzhye"; this facility will soon celebrate the fifth anniversary since the start of its operations in the region. The investor has already provided 2.4 billion rubles for the economy of the Ulyanovsk region and employs about 200 people. The company's customers include the world's leading automobile manufacturers such as Volkswagen and Škoda.

In addition, the Council presented a project for the major overhaul and reconstruction of the Aviastar-SP plant, which has also received the special RIP status. Thanks to these upgrades, its facilities will have the necessary production lines; more than 200 pieces of equipment will be installed, which will set high rates for mass production within IL-76 and IL-78 programmes. In the next five years, it is planned to invest more than 4 billion rubles in equipment upgrade and reconstruction. The economic effect of this project should make about 112 million rubles.

The special status of a regional investment project has been in force in the Ulyanovsk region since 2020. For participants of RIP, the corporate income tax to the regional budget is reduced to 10%. At the same time, the corporate property tax to the federal budget is 0%.

During the meeting of the Council, the Governor also presented Holzhof Rus with a certificate that proves its status as the resident of the special economic zone. Currently, the investor is launching production of wood-polymer composite moldings in PSEZ "Ulyanovsk". These goods are used in construction of wharves and jetties for private and passenger ships, as well as pavilions and terraces for country houses. Investments into the project will total about 100 million rubles; about 50 new jobs will be created. The start of production is scheduled for December 2020.

“Currently, the building has been completed, and a boiler is being built. Based on the current demand, we decided to increase production and to bring the number of employees from 20 to 50 people. The equipment has already been delivered and customs-cleared; it is in our warehouses in Ulyanovsk at the moment, and we will begin the installation in the near future. We expect to launch the first stage production in December,” - said Dmitry Savalev, the founder of AO "Holzhof Rus".

During the event, Marina Alekseeva, First Deputy Chairman of the Government of Ulyanovsk Region, reported on implementation of the Investment Message of the Governor of Ulyanovsk Region for the first half of 2020.

She said, “We have completed all the tasks in six months. A great deal of work has been done in the field of investment legislation. We have established a reduced income tax rate for regional investment projects, as well as developed a law to broaden options for establishment of technology parks in the Ulyanovsk region (including rural ones). Moreover, we are sending initiatives to the federal center. These include features for separate property accounting to make it more comfortable for investors during the first stages of their project. In addition, we continue working to overhaul means of control and supervision. We are simplifying the self-assessment process for businesses and continue to share our experience in creating check lists for certain types of control and supervision activities with the use of a risk-oriented policy. A single landing platform for investors is currently under development; it will work as a remote online tool that can store the complete list of state support measures and help investors to choose the most suitable ones.”

Sergey Vasin, Director General of Ulyanovsk Region Development Corporation, presented new solutions for investors as part of digital transformation of the region's investment activities. In particular, investors will be able to use a "personal account" and a "single digital entry point into the region".

He commented, “The new digital solutions, which we suggest implementing on the basis of the region's investment portal, have been developed after implementation of the 10 Steps to Reform the Investment Climate programme approved by the Governor of Ulyanovsk Region in October 2019. They are completely in line with the task set by the standard of ASI National Rating. These services will allow the investor to submit all documents remotely and to start implementation of the project without additional costs associated with the delivery of documentation. Also, one website will bring together all the main development institutions of the region. Our task is not only to create new services that have not had a digital form before, but also to integrate the existing developments and tools; to create a single database of digital services for investors as a one-stop feature.”