Production sites of DAAZ to be integrated in a single enterprise in 2018

This was announced on 13 July at a meeting of the Governor Sergey Morozov with the plant management and employees.

 “We are constantly in contact with the management of DAAZ. At the Innoprom exhibition, which took place in Ekaterinburg recently, we once again discussed the prospects of development of the industrial site. Expectations of experts are that there will not be any decrease in production. The first and foremost task before us is to complete reunification of the Dimitrovdrad Automotive Plant until the end of this year. The regional Government, for its part, will continue to provide the company with all necessary support and to strengthen economic and industrial capacities of Dimitrovgrad. Over the past three years, the enterprise received benefits on property taxes and several other ones worth more than 100 million rubles. We will attract investors to DAAZ, as well as UAZ and other sites. We will provide them with benefits and will continue to retrain people for new jobs,” - said the head of the region.

According to the head of the UAT Group Sergey Fedchenko, today the automotive market has already seen significant growth compared to the stagnation that took place in the past few years. One can notice positive tendencies on a number of items in the secondary market. There was an increase in the number of orders from traditional customers such as AVTOVAZ, KAMAZ, UAZ, GAZ Group.

“Last year I talked to Sergey Ivanovich Morozov about a desire of the Group's management and shareholders to revive the plant and to unite the enterprises that had been artificially divided. Now it is not just a dream. The programme has been started and a schedule has been developed. We have also received all corporate approvals from the company's shareholders. It is expected that the process will be completed in the first half of 2018,” - said Sergey Fedchenko.

He also noted that in the framework of the programme of financial rehabilitation of industrial sites, special attention will be paid to manufacturing the products that today are particularly in demand in the market. It is also planned to continue modernization of the enterprises and recruitment of personnel.

We would like to remind that the Government of the Ulyanovsk region is working on development of the Dimitrovdrad Automotive Plant. In 2016, a law was adopted on granting tax benefits to residents and the managing company of the DAAZ Industrial Park.

In particular, starting from 1 January 2017, the profit tax rate for the companies carrying out production activity in the territory of the industrial park will amount to 13,5%. It should be transferred into the regional budget within a period of four years. For the managing company of the industrial park the profit tax rate will be 0% for the same period. All this will allow employers to use their savings to develop production sites and support their employees.