Industry
The Region produces locomotives, railway and subway cars, steel, including finished steel, mineral fertilizers, automobiles, buses, chipboards, passenger elevators, sewing machines, all-purpose kitchen machines, medicines, linoleum, textiles, carpets, porcelain dishware, and many other products.
The leading industrial sectors of the Moscow Region are food and beverages, machine engineering and metal processing, energy, construction materials, chemicals and petrochemicals, and forestry and timber (furniture).
Food and beverages
The leading companies within the sector are: OOO Mars, ZAO Klin Meat Processing Plant, ZAO Klin Brewery (new name – OAO SUN Interbrew), OAO Istra Bakery, OAO Kolomna Experimental Meat Processing Plant, OAO Ramensky Meat Processing Plant, OAO Sergiev Posad Meat Processing Plant, OAO Podolsk Experimental Flour Mill, and OAO Noginsk Bakery.
Machine engineering and metal processing
The sector accounts for 25% of total industrial output. The Region’s machine engineering sector is represented by nearly all types of products. Moscow Region enterprises produce machine tools and equipment for ferrous metals, energy, construction, transport, agriculture, and light industry sectors (Mytishchi, Lyubertsy, Podolsk, Kolomna, Dmitrov, and Egorievsk), as well as radioelectric and space equipment (Korolev and Reutov), and nuclear machinery (Electrostal and Podolsk). The Region also has enterprises in the optical-mechanical sector (Krasnogorsk, Sergiev Posad, and Lytkarino).
Construction materials
The Moscow Region is the largest producer of construction materials in the Central Federal District. Some 1,000 companies, including small enterprises, are engaged in the production of construction materials.
Chemicals and petrochemicals
The sector is focused on the production of mineral fertilizers, insecticides, plastics, chemical fiber, paint, and varnish. The 2004 output was 17.7% up on 2003, mainly due to an increase in the synthetic resin and plastic production (7.1%) and increased output of plastic goods (23.9%). The leading companies in this sector are located in Voskresensk, Shchelkovo, Klin, Serpukhov, Orekhovo- Zuevo, and Sergiev Posad. The largest companies are: OAO Mineral Fertilizers, ZAO Zagorsk Paint and Varnish Plant, OAO Mosstroiplastmass, OAO Chemical Fiber, OAO Carbolite, OAO Odilak, and OAO Phosphates.
Imports
The bulk of regional imports was represented by machinery, food and beverages, and petrochemicals. The main import partners included: Germany, Belarus, Ukraine, Poland, and Italy.
Investment Appeal
The following factors determine the investment appeal of the Moscow Region:
• Its advantageous geographic location (nearly all of Russia’s transit routes pass through the Moscow Region);
• Its developed transport infrastructure;
• Its considerable industrial, agricultural, and research and development potential;
• Legislation supporting investment activities;
• Its highly qualified workforce (high professional level of employees in the research and development sector and high general level of education);
• Favorable climate and availability of recreation facilities.
Major Enterprises (Including Enterprises with Foreign Investment)
Major companies with foreign investment include OOO Mars, OOO Campina, OOO Nestle Zhukovsky Ice Cream (food industry), OOO KRKA-RUS (medicines), ZAO ODIKHEL (paint and varnish), OOO ROSTAR (aluminum cans), and others.
Such renowned investors as Saint Gobain, Auchan, Michelin, Royal Canine, Kesko, Tigi-Knauf, Hochland, SUN Interbrew, PLM, and British Plastic Boards have invested in the Moscow Region. Nestle, IKEA, PepsiCo, Mars, and FM Logistic are expanding their operations in the Region. The following major companies operate their branches in the Region: British Petroleum, BMW, Mercedes, Danone, and Ehrmann.
Most Attractive Sectors for Investment
Glass and porcelain, forestry and timber, pulp and paper, food and beverages, chemicals and petrochemicals, construction materials, trade and public catering, and transport are the most appealing sectors for investors. |