«Prospects of establishing the production offiber glass pipes
in the Special economic zone “Alabuga”
The Special economic industrial zone “Alabuga”was created on December 21, 2006 in theRepublic of Tatarstan
In the center of the largest industrial region 800 km to the east of Moscow
�Territory – 67 800 km2
� Population – 3.8 mln.� GRP – USD 26,7 bln.� Industrial output – USD 26 bln.� S&P rate - BBB+� Moody’s rate - Baa2� Fitch - IBCA - BBB+
One of the most developed regions in the Russian Federation
Economic industrial structure of the Republic of Ta tarstan
“Free customs zone” regime
Foreign countries Russia
Machinery and partsNo VAT – 18%
No Import duty – 10%
SEZ “Alabuga”
Investment incentives and preferences
Title
1. Profit tax for the residents2. Property tax for the residents3. Land taxfor the residents4. Transport taxfor the residents
Taxation rate
20.0%15.5%2.2%0%1.5%0%
USD 0
from USD 0.3 to USD 3.8 (per a horse-power)
�Inner-site roads� Railway� Gas� Electricity� Heating� Water � Sewerage � Storm sewage � Drainage� IP Phone � High-speed Internet
Industrial infrastructure
Land plot rent and purchase
Rent:USD 0.05 for m2
per year Purchase:USD 0.12 for m2
10 ha area
Rent:USD 4.800 per year Purchase:USD 11.800
1. Checkpoint with 4х2 driving lanes (entrance and exit)2. Parking for 100 trucks3. Parking for 50 trucks4. Unit of cargo and vehicle profound audit5. Unit of container profound audit6. Railway7. Railway terminal8. Container terminal (1 500 containers 40 2 TEU)
Customs infrastructure
�Single Window System (One Stop Shop)�Banks�Conference halls�Exhibition hall�Offices�Post office�Meeting rooms�Public health office�Gym�Canteen
Administrative-business centre(total square – 11.000 m2) with all the necessary services needed for everyday work:
Business infrastructure
�Ministry of Ecology and Natural Resources�Ministry of Labor and Social Security�Service of Environmental, Technological and Nuclear Oversight�Federal Real Estate Cadastre Agency�Social Insurance Fund�Fund of Obligatory Medical Insurance�Inspection of State Architectural Building Supervision�Registration Service�Chamber of Commerce and Industry�Tax Service�Customs Service�Migration Service�Pension Fund�Certification Test Center�Technical Inventory Bureau
Single window system (One Stop Shop)
Polymers produced within 400 km from the SEZ “Alabuga”
Most major Russian carmakers are located within 500 km from the SEZ “Alabuga”
JV “P-D Tatneft-Alabuga Steklovolokno”
• OAO “Tatneft” – 50%
P-D Glasseiden GmbH Oschatz – 50%
• Investment volume – 63,6 million euro
•Production capacity – 21 000 tons
•Start of production – November 2009
•Full capacity production – by 2011
•300 jobs
•Payback period – 6,5 years
•Taxes to Federal and Local budget – 250 million rubles annualy
Products and application fields
Woven roving - used as reinforcing material for glass-fiber plastics pipes, plastics filling
Chopped fiber - used for non-woven material production
Glass-mat – used for glass-fiber plastics sheets, boats and transport hull, boxes etc.
Fiberglass mesh - used for building and construction, heat insulation, reconstruction and repairing of roads
Complex materials – consists of 2 or 3 types meshes and fabrics. Used in repairing of sewerage, production of pipes, shipbuilding
Roving for chopping – used for production of mesh, translucent glass-fiber plastics
Fiber glass production in Russia
Saint-Gobain Isover(Egoryevsk)
Saint-Gobain Vetroteks Fiber-glass (Gus-Khrustalny)Steklonit
Fiber-glass plastics plant (Stupinsk)
Tverstekloplastik
Novgorod fiber-glass plant
Fiber-glass plant in Astrakhan
Others
Total production in 2008 – 169 000 tonsMarket annual growth – 25%P-D Tatneft projected market share – 15%
Consumption of fiber glass by groups
14 % - automotive16 % - pipes, tanks
10 % - shipbuilding
Russian fiberglass pipes market to grow
Housing and utilities
Oil and gas
Chemical production
Energy sector
Advantages
• Corrosion-resistant
• High strength-to-weight ratio
• Low cost assembly and maintenance
• Wider temperature and pressure range
Fiberglass pipes in the overall polymer pipes consumption in Russia
11 % - PP pipes
76 % - PE pipes
Production of fiberglass pipes in Russia
Major producers
OOO “Zavod steklovoloknistih trub”, Kazan
OOO “Truboprovodspetsstroy”, Perm
OAO “DPO Plastic”, Dzerzhinsk
OOO “Armplast”, Nizhnevartovsk
FGUP “Avangard”, Safonovo
4 major producers
Oil and gas oriented (epoxy based, up to 300 mm)
Total annual production below 800 kilometers
Projected market annual growth – 30%
Cost of project realisation
Project realisation
Is in average 40 % lower
Cost of construction works is 30-40 % lower (USD)
Cost of construction materials is 35-40 % lower (USD)
Cost of labor force
55 % increase 41 % decrease
Source: Ministry of labour, employment and social security of the Republic of Tatarstan
Thank you for your kind attention!
Contacts:
Investor Relations Department:
Tel: +7 (85557) 5 90 23
Fax: +7 (85557) 5 90 01
E-mail: [email protected]
www.alabuga.rosoez.ru