COMMERCIAL
NEWS UPDATE FROM LOWER VOLGA VALLEY
January
2006
Submitted
by Marina Johnson, BISNIS Representative in Samara, Russia
This
report summarizes commercial and business development news in the South of
Russia and the Lower Volga regions for January 2006.
This
report contains the following information:
LOWER
VOLGA VALLEY
-
Samara Region:
Automotive and Aerospace, Telecommunications
-
Ulyanovsk
Region: Automotive and Airspace, Industrial Shows
-
Astrakhan
Region
-
Volgograd
Region
SOUTH
OF RUSSIA
-
Krasnodar Region
-
Rostov Region
Samara Region
Automotive and Aerospace
AvtoVAZ sums up
2005
JSC AvtoVAZ announced preliminary
production data, which show production output for 2005 at 719 000 cars.
Sales grew 2.5% against 2004 and amounted to 640 000cars. 95 000cars
were produced for export. 18 000cars of new LADA Kalina model were
manufactured, including some 700 for export to CIS. Some 190 000car part
sets were produced and shipped to 13 assembling enterprises. Production plan
for 2006 is set at 730 000cars, including 133 000car part sets for
assembling enterprises.
Source: www.volgainform.ru
AvtoVAZ sales jump
in December
In 2005 JSC “AvtoVAZ” sold 648 000cars on the
domestic market, which is 3.7% above the sales of 2004. December 2005’ sales
amounted to 65 000cars, which is 23.8% increase against November 2005
sales and 10.5% increase against the same period of 2004.
In December 2005 the plant produced 69 136cars
(16.3% growth verse the same period of 2004), including 6 184cars for
export and 19 475cars of LADA 110 model. The overall production of 2005
reached 721 492cars, being 5.4%over the plan. Outer market production
output amounted to 96 484cars, LADA KALINA cars production was 18 097cars.
Source: www.volgainform.ru
AvtoVAZ Facing Pressure from
Workers to Buyout JV Partners
Shareholders in the joint venture between General Motors and AvtoVAZ are
scheduled to meet on Jan. 31, to discuss the venture's work.
The new state-friendly management at AvtoVAZ has called into question
its partnership with the world's largest carmaker. In December, a source in
AvtoVAZ's management said the company was intent on freeing itself from
restrictive agreements with the joint venture.
The two carmarkers each own 41.5 percent of the joint venture, which has
been in operation since 2002. The remaining 17 percent is owned by EBRD.
Source: www.themoscowtimes.com
AvtoVAZ to use
foreign car parts
JSC AvtoVAZ announced its willingness to employ the
experience of foreign car makers and purchase some amount of car part for new
models, which are still technologically difficult for production at the Russian
plants. The decision was also triggered by the favorable changes of duties
imposed on imported car parts as of December 2005.
Source: www.volgainform.ru
Telecommunications
Federal Property
Fund to privatize VolgaTelecom
On
22 February Russian Federal Property Fund (RFPF) will place 0.6% (or, 1.969mln
shares) of JSC “VolgaTelecom” shares on auction. The par value of the shares is
5rbl, the initial price is $6.839mln. Previously RFPF placed the lot on auction
in May and October 2004, yet it attracted no bidder.
Source: www.volgainform.ru
Samara
financial trends of 2005
Analysts consider 2005 as re-sharing rather than
investing period for Samara region. The key enterprises such as
“Samaraneftegas”, oil refineries of “Yukos”, JSC AvtoVAZ and “Volgotanker” have
become state properties, which led to strategy shifts.
Regional
companies most active on the market were GC “SOK” (which overtook “Samara Cable
Company”, “Active Capital” and “Plastic Plant”) and the trading and investment
company RBE (gained control over Samara River Port, the River Sok Quarry and
Samara Steel Rolling Plant).
The
following large scale project were realized in 2005:
“Sok”
started production of KIA Spectra, having invested some $60mln;
“Novatek”
launched production of wrapping tape (investment volume reaching 50mln euros);
“VolgaBoreMach”
started manufacturing of galvanized steel, which took $14mln;
“ElectroShield-TM-Samara”
developed production of mineral wool insulation in Ulyanovsk (8mln euros);
“TogliattiAzot”
launched production of reactor tubes worth $6mln.
The
total investment volume of 11months of 2005 in Samara region was $1.7bn, which
is 1.7% above the same period of 2004.
Source: www.vedomosti.ru
Ulyanovsk Region
Automotive and Aerospace
Byelorussia mulls
purchasing several TU-204-300
On January 10 the delegation of State Aviation
Committee of Byelorussia visited Ulyanovsk Region to discuss probable purchase
of several TU-204-300 planes, as the passenger fleet of Byelorussia needs
modernization. The visitors observed CJSC “Avia-Star-JV” and met the governor
of Ulyanovsk region Sergey Morozov.
Source: www.volgainform.ru
Ulyanovsk seals
partnership with Severstal-Group
The governor of Ulyanovsk Region Sergey Morozov and
the general director of Severstal Group Aleksey Mordashov signed an agreement
of social and economic cooperation between Ulyanovsk Region and Severstal
Group. The main items of the cooperation are production development and
investment projects at UAZ. Severstal Group is to modernize production and
implement new technologies at UAZ and to promote regional industrial
cooperation. Ulyanovsk region is to facilitate restructuring of personnel
services and social benefit system of Severstal Group.
Source: www.volgainform.ru
Ulyanovsk raises
construction by 60%
In 2005 finished construction volume grew by 60%
against 2004, the Deputy Chairman of National Projects Committee Vladimir Kozin
announced.
Source: www.volgainform.ru
Ulyanovsk region to
encourage light industry
The governor of Ulyanovsk Region Sergey Morozov and
the president of Russian Union of Light and Textile Industry signed an
agreement of cooperation aimed at encouraging enterprises of light and textile
industry in the region. The parties agreed upon working towards more effective
development of the industry.
During his visit to the region, Boris Fomin observed
the biggest textile firm of the region CJSC “Rus’ ”, which has increased the
production out put by some $560 000 up to %13.2mln in 2005.
Source: www.volgainform.ru
Ulyanovsk
participates in Berlin Show
Ulyanovsk Region representatives visited the
international agricultural and food processing show “Green Week”, held in
January 2006 in Berlin, Germany. The governor of the region Sergey Morozov met
the Ambassador of Russian in Germany Vladimir Kotenev and the chairman of
Russian Chamber of Commerce in Germany Sergey Nikitin to discuss establishing
sister-cities relationship with one of the 16 lands of Germany. Such
cooperation can be mutually beneficial in the areas of automotive engineering, information
technologies, textile industry, agriculture and tourism.
Germany is the major trade partner of Ulyanovsk
region, the trade turnover amounted to $11mln ($6.3mln of export and 5.2mln
euros of import).
Source: www.volgainform.ru
Volgograd Region
Volgograd telecommunications revenue soar 15%
The
total services provided by Volgograd telecommunication companies amounted to
$178.5mln, which is 15% growth against 2004, preliminary data of Volgograd
Industry, Transportation and Telecommunications Committee say.
Source: www.interfax.ru
Volgograd Region
present at Berlin Show
Volgograd region visited the international agriculture
and food show “Green Week” held in Berlin (Germany) in January, 2006 and was
awarded 10 medals for effective management and best products. The region
presented 10 investment projects in the fields of agriculture, food processing,
equipment and fertilizing. The region’s presentation was the second biggest out
of 20 Russian regions-participants and included 52 enterprises.
Source: www.volgainform.ru
Volgograd
construction exceeds 300 000sq m
Volgograd Architecture Inspection reported
323 000sq m of dwelling to be completed in 2005, this including 28
multi-storied residences with the total square of 237 114sq m and 6 lower
residences with the total square of 19 740sq m. Over 66 000sq m was
constructed by individuals.
Source: www.volgainform.ru
Astrakhan Region
Plant merger in Astrakhan
Guzhvin Engineering
Plant, Ltd (a filial of “Makhachkala Sea Trade Port”) has won the auction for
“October Revolution Plant” of “North Caspian Sealines” for 113mln rbl.
Source: www.interfax.ru
Krasnodar Region
Krasnodar
hosts tourism show
CJSC “Soud-Sochi Exhibitions” is to hold the 3rd
Tourism Show on January 9-14. The show will present leading Russian resort
areas, transportation and insurance companies and regional associations. The
show participants will get a chance to purchase large holiday packages on
discount prices and observe the number of hotels and resorts. The show aims at
establishing better understanding of the prospects of Krasnodar region tourism
development.
Source:
http://economy.kuban.info
Krasnodar presented at Berlin show
Krasnodar has
presented 22 investment projects at the international show “Green Week” held in
Berlin (Germany) on January 12-15.
Source: www.interfax.ru
Rapeseed oil plant
to be built in Krasnodar
By autumn of 2006 a rapeseed oil extracting plant is
to be built in Krasnodar with the help of German investors. 50 000hectares
is allocated for rapeseed farming, the oil of which can become valuable biofuel
for agricultural equipment. The investment for the project is 15mln euros.
Source:
http://economy.kuban.info
Krasnodar
mulls constructing a gas refinery
The governor of Krasnodar Krai Aleksandr
Tkachev and the general director of JSC “RosNeft-KrasnodarNeftegaz” Nikolai
Kovalev have discussed prospects of a large gas refinery in Krasnodar, the
investment volume of which is to reach $1bn. The project is to be analyzed in
detail before reached at decision.
Source: www.regions.ru
Krasnodar
to join MIPIM-2006
Krasnodar is to present the best investment
projects of commercial estate at the 17th International Commercial
Estate Show MIPIM 2006 in the Cannes.
Source: www.regions.ru
Krasnodar
opens an oil well
An oil well with a daily output of 420-450tons
opened in Temruksky flux (Krasnodar) in 2005 is the largest in the region,
the other wells producing the utmost of 250tons a day. The annual capacity of
the well is over 100 000tons per year. The oil is to be processed at the
first separating refinery in Krasnodar, “Slavyanskaya”.
Rostov Region
Concentrating plants to be build in Rostov
In 2006 “JSC GukovCoal” intends
to complete construction of two module concentrating factories on “Almaznaya”
and “Rostovskaya” mines, the companies press service announced.
Source: www.interfax.ru
Rostov launches equipment production
The Russian dealer
of domestic and foreign agriculture equipment producers “Bizon”, Rostov Region,
starts a serial production of seeds loader devise in 2006, the press service of
the enterprise announced.
Source: www.interfax.ru
Agriculture development in Rostov
Rostov
Region agriculture was developed in 2005 by efforts of major regional
companies. “Yug Rusi” launched sunflower oil extracting plant with the annual
capacity of 1.1mln tons, thus raising the company’s total capacity to 1.45mln
tons of seeds per year. The investment volume equaled $150mln with payback term
of 7 years. The company plans to process soya beans as well as sunflower seeds.
A
competing company of “Aston” invested $15mln into 2-year-long complex
modernization of Miller Oil Extracting plant aiming at raising the capacity to
500 000 tons per year and lowering production costs from $2.3 to $1.05 per
ton.
The
new oil refining and bottling shop worth $22mln of the other “Aston’s” plant
produces 6.5mln bottles a month. The
company intends to mount the second production line to swell output to 21mln
bottles a month, thus achieving 3-4% of national bottled oil market by mid 2006
and later expand to 20%. To equal the main competitors “Bunge” and “Yug Rusi”,
“Ason” is said to require at least twice the present promotional fund of $2mln.
“Aston”
and “Unimilk” also co-invested $50mln into construction of a diary factory with
daily capacity of 600 tons. The first line is to be launched in late 2006, and
the project capacity is to be achieved by 2011. The factory is devised to
produce infants’ food, desserts, yogurts and enriched dairy products. Upon
reached the project capacity the factory is to gain 40% of the market in the
Southern Federal District.
Poultry
meat importer “OptiFood” launched a chicken farm “Nadezhda” and started
reconstruction of a chicken farm “Starostanichnaya”, both projects totaling
$25-30mln. The total capacity of the two farms is to reach 30 000tons of
meat per year.
Source: www.vedomosti.ru
Rostov signs agreement with Germany
In January 2006
Rostov Ministry of Agriculture, Food Supplies and Environment signed a protocol
of intentions with the North Westfalia – Rhine, Germany
Source: www.interfax.ru
Russian South booms cosmetics production
In 2005 JSC
“Arnest” (Stavropol), a major Russian producer of perfume and cosmetics increased
production output in spray tubes by 35% against 2004 up to 112mln units, the
company reported
Source: www.interfax.ru