German company to establish production of high-precision metal work in the Ulyanovsk region

The investment agreement was signed on 23 November within the International Forum "Production Localization, Development of Industrial Capacity and Vocational Training in Russia" between the Government of the Ulyanovsk region, the Ulyanovsk Region Development Corporation, the German company "STT Special Tool Technology GmbH" and the Russian one "OOO Novye spetsialnye instrumentalnye tekhnologii".

 "This project is in the field of knowledge-intensive and high-quality productions, and we are especially interested in their development. To a large extent through cooperation with Germany, we manage to draw attention of other European representatives to the Ulyanovsk region. We place a particular emphasis on production localization in the region. For example, the DMG MORI enterprise focuses on development in this very direction. As a result, an independent suppliers park is starting to form now, which includes not only European or Japanese representatives, but also Russian ones. It will allow to considerably reduce logistic expenses due to close proximity of manufacturers of components for machine-tools, as well as concentration of related manufacturing processes on the neighboring sites. On the other hand, this offers an opportunity to prepare high-end jobs and to train our young people, who are going to work in this sphere, to perform at the same level as their colleagues in Europe or Japan. For our region the localization process is an excellent chance to improve our industry and to upgrade it", - the head of the Ulyanovsk region Sergey Morozov emphasized.

The Chairman of the Board of the Russian-German Chamber of Commerce Matthias Schepp said in his speech to the Forum that favorable investment climate is of paramount importance to development of relations between the countries. "Germans and Russians are linked by about one thousand years of shared history. There were some terrible moments, for example, when Nazi Germany attacked the Soviet Union. But we managed to get relationship back on track  and to respect each other. In the present situation, while the political relations are still intense, I am absolutely sure that business and economy are the greatest and the most reliable bridge between our countries. It is very important for investors how they are greeted, how fast their problems are adressed, and it is especially valuable if the head of the region and his team participate in this process. That is precisely the case in the Ulyanovsk region", - Mr. Schepp said.

The total investment into the project of the German company will amount to more than 10 million euros, and 20 high-end jobs will be created. The investor and the co-investor intend to enable project implementation to the middle of 2017.

Peter Lando, the Managing Director of STT Special Tool Technology GmbH, mentioned the great support provided by the Government and the Ulyanovsk Region Development Corporation in the negotiation process: "We are happy to have an opportunity to localize the production in the territory of this region".

According to the Director-General of OOO Novye spetsialnye instrumentalnye tekhnologii Dmitry Mikityuk, advanced and high-precision metal products will be manufactured in the Ulyanovsk region. The list of goods includes laser and optical components, automobile units, equipment for power plants and etc. They will be used for the needs of aviation, as well as automotive and energy industries.

According to the CEO of the Ulyanovsk Region Development Corporation Sergey Vasin, the company's first encounter with the region took place within the visit of representatives of the German business in September by the invitation of the Governor. "In the framework of the meeting we presented investment potential of the region, introduced the company to the possible partners, the Ulyanovsk Center for Technology Transfer (Ulyanovsk NanoCenter), and agreed that the company will provide super technological and ultra-precise turn-mill centers for production of components for aviation and automotive industry. We have already reached an agreement on participation of the company in release of components for wind turbines. The Corporation, in return, will provide the investor with a production case in the premises of the Nanotechnology Centre", - the CEO Sergey Vasin said.

02.12.16