August 2006
Monthly News Report
Submitted by Roman Vvedensky, BISNIS
representative in Nizhny Novgorod, Russia
The report summarizes commercial, political and
business development news in the Nizhny Novgorod region and Republic of
Tatarstan for the period of July – August
2006. The information is received from the Russian news agencies
(INTERFAX, NTA), TATAR-INFORM.RU, INTERTAT.RU, REGNUM.RU, REGIONS.RU, regional
periodicals, PR departments, and web-cites of the regional governments and
local companies.
The report highlights:
Nizhny Novgorod Region:
·
Microsoft
announces $100,000 project with Nizhny Novgorod State University
·
IT techno-park
project in Nizhny Novgorod to attract $375 million investment
·
IFC and UMC sign
$60 million loan agreement
·
Liebherr to
invest $250 million in production projects in Nizhny Novgorod region
·
Siemens to take
part in modernization of Nizhny Novgorod airport
·
FAUN GmbH to assemble
garbage trucks in Nizhny Novgorod region
Republic of Tatarstan:
·
Standard & Poor’s increases Tatarstan rating to BB-
·
Island Pyrochemical Industries considers US-Russian JV in Kazan
·
EBRD plans to
issue Euro 20 million loan to Kazan Water Supply Company
·
Severstal-Avto to
produce Fiat Ducato in Tatarstan
·
Durr Systems GmbH
signs Euro 10 million contract with KAMAZ automotive company
Microsoft announces $100,000
project with Nizhny Novgorod State University
Microsoft plans to invest US$100,000 in its Center of Excellence on the
campus of the Nizhny Novgorod State University.
The center is equipped by Microsoft, and it will run projects on
research, training, and consulting. The Nizhny Novgorod State University has
been successfully cooperating with Microsoft for the last few years.
IT techno-park project in Nizhny
Novgorod to attract $375 million investment
According to Nizhny Novgorod region’s government, a new IT techno-park
will be open in Nizhny Novgorod in 2010. The construction works on the project
will start next year. The region’s government has provided a 125-acre land
parcel in the city, which will host modern offices, research labs, hi-tech
production facilities, conference sites and residential area for the techno-park
tenants. The region’s government plans to invest $53.5 million in the project;
other investment will come from private companies and funds.
The local IT leaders – Intel Nizhny Novgorod Lab, TELMA, and MERA –
expressed interest for the project.
IFC and UMC sign $60 million loan
agreement
The International Finance Corporation, part of the World Bank, and
United Metallurgical Company (UMC) signed US$60 million loan agreement with 8
year maturity.
The funds will be allocated for modernization of Vyksa Metal Works,
located 130 miles to the south west of Nizhny Novgorod. Vyksa Metal Works is the largest
metallurgical company of the region, owned by UMC. The modernization program
also provides for removal of open-hearth furnaces, currently operated by the
company.
Liebherr to invest $250 million
in production in Nizhny Novgorod region
According to the Nizhny Novgorod region’s government, it agreed with
Liebherr, Switzerland, to launch a US$ 250 million production project in the
region.
The project will be carried out in three steps. Firstly, the company
would set a plant to produce components for earth-moving machines. Secondly, it
would launch assembly of construction machinery for the Russian market.
Thirdly, Liebherr would build a plant to produce components for aerospace
projects. The plant, producing earth-moving machinery components, will be
opened by mid next year. The project is estimated at US$ 80 million, and it
provides for creating of 200 new jobs in the region.
Liebherr has long-term business relations with Nizhny Novgorod based
company Hydromash, a producer of hydraulic units for aircraft and
earth-movers.
Siemens to take part in
modernization of Nizhny Novgorod airport
Valery Shantsev,
Governor of the Nizhny Novgorod region, met with senior officials of Siemens
AG, who visited Nizhny Novgorod on July 25, 2006.
Siemens expressed
interest to take part in modernization of Nizhny Novogrod airport facilities,
including development of a new data management system, luggage handling, and a
new lighting system for a tarmac.
The Siemens delegation
also discussed projects in telecommunications, electrical engineering, and
medical equipment.
FAUN GmbH to assemble garbage trucks in Nizhny
Novgorod region
FAUN GmbH, a producer
of heavy trucks, truck cranes and communal vehicles, announced plans to set a
joint venture to assemble garbage trucks, and to produce plastic garbage cans
in the Nizhny Novgorod region.
The company plans to
start from leasing of its 70 garbage trucks, assembled on a chassis of a MAZ
heavy truck, Byelorussia. FAUN garbage trucks, equipped with a RotoPress
system, are capable to collect twice more garbage, compared to local communal
vehicles.
Standard & Poor’s increases Tatarstan rating to BB-
Standard & Poor’s increased the long-term
rating of the Republic of Tatarstan from ‘B’ to ‘BB-’ with a forecast ‘stable’.
Island Pyrochemical Industries considers US-Russian JV in Kazan
The President of Island
Pyrochemical Industries (IPI), NY (www.islandgroup.com),
met with Prime-Minister of Tatarstan, to discuss the issue of setting a joint
venture with Kazan-based TASMA-Holding to produce cellulose triacetate film for
the Russian and European markets.
TASMA-Holding launched a cellulose triacetate
plant in 1978, which was mothballed in mid 1990s due to a decreased demand in
the domestic market. The production capacity of the Kazan plant is 6 million
tons of cellulose triacetate per year.
The US company plans to invest its
technologies and funds to modernize the existing facilities at TASMA-Holding.
The proposed share of IRI is 51% in the joint venture. The JV would employ 200
people, and its annual sales are estimated at Euro 25 million after two years
of operation.
EBRD plans to issue Euro 20 million loan to
Kazan Water Supply Company
The European Bank for
Reconstruction and Development (EBRD) signed a preliminary loan agreement with
the city government of Kazan to allocate Euro 20 million for reconstruction of
the municipal water supply company Vodokanal. The grace period of the loan is 3
years, and the annual interest rate is approx. 8%.
The EBRD experts will
assist the municipal company Vodokanal to attract over one million Euro in
grants for a technological and financial audit of the company. The audit should
be completed by late this year, when the loan agreement will be signed by the
EBRD and the city government of Kazan.
Severstal-Avto to produce Fiat Ducato in
Tatarstan
Fiat Group and
Severstal-Avto agreed on assemble of Fiat Ducato light commercial vehicles
(LCVs) in Alabuga, eastern Tatarstan.
The project, financed
by Severstal-Avto, provides for the output of 75,000 LCVs Fiat Ducato annually.
Most of the vehicles will be exported from Russia. The first Fiat Ducato should
be assembled at the plant in Alabuga in late 2007.
Durr Systems GmbH signs Euro 10 million
contract with KAMAZ automotive company
Durr Systems GmbH
signed Euro 10 million contract with KAMAZ, manufacturer of heavy trucks, to
supply a new paint line to the Russian company.
The equipment will be
leased to KAMAZ for the period of two years.