«Alabuga» to present to Chinese investors a business plan on joint venture: the SEZ expects 45 resident-companies of 136 bln. RUB

Negotiations on joint venture arrangements with China have already been under way since 2016. Potential partner – the largest and one of the most successful in China Tianjin Economic - Technological Development Area TEDA. TEDA houses 19 000 resident-companies with a total investment volume of over 110 bln. USD. It is expected that the Chinese partner will add to the attractiveness of the site in Tatarstan for Chinese investors.

The business plan of the future joint venture was developed by PriceWaterhouseCoopers. As an independent eminent expert, PWC confirmed to the Chinese party a high reliability of the special economic zone «Alabuga», noting steady and consistent growth of its key indicators – number of investors, investment volume. The experts have drawn attention to the fact that the SEZ «Alabuga» set pace among Russian special economic zones in a number of key indicators: investment volume and revenues, amount of tax payments, transferred to the budget. «Alabuga» accounts for 48% investments of all special economic zones, 62% of revenues of all resident companies and 58% of all-Russian tax payments. So far, «Alabuga» has 56 registered resident companies, 24 operating plants.

Last weekend «Alabuga» was visited by the representatives of Tianjin Economic- Technological Development Area TEDA, China CAMC Engineering and chemical company Golden Elephant. Delegation participants made a tour of the plants in the SEZ «Alabuga», industrial park «Synergy», acquainted with the work of the international school «Alabuga». The representatives of Chinese companies highly appreciated the world level infrastructure development of Tatarstan SEZ.

CEO SEZ «Alabuga» Timur Shagivaleev presented the advantages of the industrial site to Chinese investors. He noted that taking into account the current political situation Chinese producers will have special preferences, namely 0% of import duty on imported components. It is valid for the residents of the SEZ «Alabuga» if assembling on the territory of the special zone and re-exporting goods. Timur Shagivaleev also underlined that residents of the SEZ will enjoy all tax holidays and benefits, despite the changes in Russian tax legislation.

According to the business plan, the area of the future site is about 1800 hectares. It can accommodate 45 resident companies, the amount of their total investments is estimated at 136 bln. RUB. Among the industries, having the greatest potential in terms of Russian-Chinese cooperation: petrochemicals, the production of auto components, construction materials, food products, radio electronics and medical equipment, furniture. The plan also provides the time limit for construction of infrastructure as in 2019-2021, and the launch of production of first resident companies in 2021-2023. It is planned that the third development stage of the SEZ «Alabuga» will provide almost 5,000 new jobs (so far there are over 6.5 thousand created jobs in «Alabuga»).

Deputy Director of the Managing Committee of Tianjin Economic- Technological Development Area Wang Jiungming highly appreciated the infrastructure, created in the SEZ «Alabuga», and the level of services provided to resident companies. He underlined that «Alabuga» and TEDA are
in many ways similar in their development. He also highly appreciated the key economic indicators of the project, expressing confidence that the high rate of return under the plan will attract a large number of Chinese companies. Representatives of Chinese companies underlined their readiness to carefully consider the proposed opportunities of «Alabuga» for development on the Russian market.
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