Ulyanovsk Region: New Production of Automotive Components to Create More Than 100 Jobs

The agreement was signed by Governor Sergey Morozov, Sergey Vasin (Head of the Ulyanovsk Region Development Corporation) and Anatoly Luzgin (Director General of OOO "Nemak Rus") at a meeting of the Investment Council.


“Nemak has decided to expand its production and to implement a new project: another building will be placed in the territory of the current enterprise to manufacture cylinder blocks and heads for Hyundai vehicles. At least 100 new jobs will be created here for residents of the region. The investor will provide almost 2.2 billion rubles for the project,” - said Sergey Morozov.

According to Anatoly Luzgin, manager of the plant in Ulyanovsk, a new facility will be built by mid-summer 2021. It will also start making first prototypes of goods.

“We will begin recruiting in February in order to hire 20 people. We will increase this number to one hundred or more employees during implementation of the project. Starting from September, we are planning to produce about 30 thousand vehicle sets. When we reach full capacity in 2022, we will increase the volume to 200 thousand items,” - Anatoly Luzgin commented.

The enterprise for production of automotive components has been operating in Zavolzhye Industrial Park since September 2015; it makes cylinder heads and blocks for engines. Investments into the project amounted to about 2.4 billion rubles, and almost 200 jobs were created. The plant was the first project of Nemak Corporation in Russia and its 35th production facility in the world. Volkswagen and Skoda, the world's leading automobile manufacturers, are among the main customers of the Ulyanovsk plant.

The Investment Council summed up achievements of the industry in 2020 and announced plans for 2021. “This year, we expect to implement 14 projects with the total investment of 9.5 billion rubles. About 1600 jobs will be created for residents of the region. We will also conclude new contracts in the near future. A meeting of the advisory council on foreign investments, during which we are going to sign two new agreements, will be held in the second half of February,” - said Sergey Vasin, CEO of the Ulyanovsk Region Development Corporation.

In anticipation of the Investment Address, which will cover a three-year period, the Council discussed the possibility to restart the investment cycle.

“We will reboot development institutions by expanding them, reviewing the tasks and installing KPI, which will include feedback from investors. In addition, we will continue developing rural territories to place production facilities in the districts, to create technology parks and to train development teams. An important part of the cycle restart will be development of the infrastructure in industrial zones, preservation of stationary conditions for implementation of investment agreements, and improvement of state support measures to create the most favorable conditions for investors,” - said Marina Alekseeva, First Deputy Prime Minister of Ulyanovsk Region.

In addition, several projects were discussed at the meeting of the Investment Council: modernization and expansion of Martur plant for production of cat seats, construction of solar power plants (OOO "Ulyanovskie SES"), reconstruction and upgrade of production facilities of OOO "Simbirsk Muka", and a project in the field of Public Private Partnership by AO "Lanit" that involves building a medical and diagnostic center at Ulyanovsk Regional Clinical Hospital. Radisson Hotel Ulyanovsk was selected as the venue for the meeting because participants of the event were able to examine a concept of a congress center that could be placed at the hotel complex. Five of the six floors in the left side of the building with the total area of ​more than 7,000 square meters will be used for major federal and international business events. Investments into the project total about 500 million rubles. The estimated task completion date is July 2021. Such a facility will bring tourism export to a new level and can help to reload the entire tourism industry of the region.