In April 2012, a management company called “Titanium Valley” received permission from the Ministry of Architecture and Construction of the Sverdlovsk Region to start work on the creation of a special economic zone. Earlier, all construction equipment was brought to the site of the special economic zone to prepare for the grand construction. At the same time, the Titanium Valley SEZ OJSC was included in the federal register of programs whose goal is the development of the Ural Federal District up to 2020. The special status of the project provides protection from adverse changes in the legislation of the Russian Federation throughout the entire period of the SEZ.
Project Details
The titanium valley got its name by association with the nearby titanium production, which is the largest in the world. Among the priority areas of the considered special economic zone are the following:
- Production of high quality titanium products.
- Manufacture of equipment and components for engineering and metallurgical industries.
- Production of building materials.
The Titanium Valley is a special economic zone with a total area of 584.4 hectares. Of these, 295.4 ha are in the 1st phase of development, and 289 ha in the 2nd.
The first registered resident of the project was VSMPO-New Technologies LLC, the second - Sinersis LLC. In July 2012, members of the Expert Council under the Ministry of Economy and Development of the Russian Federation approved the design developments of two more potential residents. These are Stroydizel-composite and Ural Optical Plant limited liability companies. They showed complete readiness for the construction of new facilities on the territory of the Titanium Valley. For the expertise, a few more business plans are presented to specialists.
Special opinion
As Artemy Kyzlasov, Director General of Titanium Valley SEZ OJSC, notes, the appearance of a special economic zone in the Verkhnyaya Salda region provides additional opportunities for unlocking the reserve potential of the economic sector of the Urals region and ensures the full use of one of the tools for modernizing the industrial sector. That is why the priority sectors are not only mechanical engineering and the production of titanium products, but also the development of means of production, as well as the manufacture of building materials. Only modern enterprises have the opportunity to place their plants on the basis of the Titanium Valley. Under these conditions, it is estimated that Verkhnyaya Salda will become a city of science, education, technical intelligentsia and engineers.
Main tasks
The work of the grand project is aimed at the following:
- strengthening the position of the Russian Federation on the global market for titanium production for the needs of the aerospace industry;
- optimization of the processing of titanium products on a domestic scale;
- providing the relevant enterprises with a wide range of finished titanium products;
- development of industry in the region and providing conditions for attracting large investments;
- Creation of wide territorial clusters based on the SEZ (long-term perspective).
Future forecasts
How will the Sverdlovsk region change? Industry and other areas of the region, subject to the main tasks of creating SEZs, are transformed as follows:
- the degree of processing of machine-building and metallurgical products of the region will increase;
- new jobs will appear on the basis of high-tech industries, and accordingly, tension in the local labor market will decrease;
- socio-economic problems associated with the mono-profile of Nizhny Tagil and Verkhnyaya Salda will weaken;
- there will be an intensification of agglomeration processes in the cities of the Sverdlovsk region, which will favorably affect the demographic situation and migration in many settlements of the region;
- thanks to the emergence of new high-tech industries, the industry structure of the Sverdlovsk region is diversifying;
- the investment attractiveness of the region will increase;
- the standard of living and incomes of the population of the Sverdlovsk region will increase;
- the volume of tax deductions to the budget will increase;
- the status of domestic products on the world market will be strengthened, the degree of involvement of Russian industry in international technological chains will increase.
Benefits of the SEZ
Titanium Valley - a large-scale project, among the main advantages of which are the following:
- preferences in tax and customs spheres;
- favorable rates for the acquisition and rental of land;
- as a result of the Single Window, worthy residents receive all building permits within three months;
- provision of production with highly qualified personnel due to the fact that in the Urals there are many dynasties of technical specialists and engineers;
- employees of the Titanium Valley are engaged in individual selection and training of personnel for each investor.
With regard to additional benefits, this is the effective use of innovative and energy-saving technologies in the organization of the SEZ in Russia; prospects for expanding all of the country's markets in need of titanium products; construction of workshops according to a standard project and their leasing.
It is planned to organize a round-the-clock call center on the territory of the Titanium Valley and provide all the conditions for the successful functioning of the single window service.
Economic and geographical advantages
- The described SEZ is located on the territory of one of the most economically developed regions of Russia. The regional center is Yekaterinburg. This city has left near St. Petersburg and Moscow in terms of the development of medium and small business, education and science, in terms of population.
- The Titanium Valley is at the center of the largest regional market for industrial demand.
- The proximity of a highly developed titanium complex.
- The location of the SEZ in the center of the large-scale consumer market, covering not only Sverdlovsk, but also neighboring regions with a total population of over fifteen million people.
- Unhindered access to the main automobile and railway highways of the country, logistics centers and a large air hub.
Personnel Features
Due to the developed educational structure of the cities closest to the Titanium Valley, there is no shortage of specialists in relevant areas. In addition, on the basis of the SEZ under consideration, targeted training is carried out.
Specialists who came to work in the Titanium Valley from abroad are provided not only with housing, but also with all the necessary infrastructure, which allows them to transport family members to Russia for the duration of the contract. The project provides for the construction of a comfortable hotel and village for eight thousand inhabitants. In addition, close to the SEZ there are restaurants and cafes, cinemas, equestrian sports complexes, the Deer Streams reserve and the Demidovsky Park museum complex.
Other special economic zones of the Russian Federation
Currently, Russia is a huge and ever-growing promising market. That is why the creation of ROSEZ, a large-scale project aimed primarily at developing the regions of the Russian Federation by attracting foreign and domestic investment in high-tech economic sectors, tourism and shipbuilding, as well as import-substituting industries, has become so urgent.
Special economic zones have been organized for forty-nine years. Each of them is given a special legal status, which provides investors with certain customs and tax preferences and unhindered access to transport, business and engineering infrastructure. As for the costs of investors in the process of implementing projects in special economic zones, they are 30% lower than in the whole country.
Currently, the following SEZs are successfully operating in the territory of the Russian Federation:
- Industrial (Lyudinovo, Alabuga, the aforementioned Titanium Valley, Togliatti, Moglino, Lipetsk).
- Technological (“Tomsk”, “Dubna”, “St. Petersburg”, “Innopolis”, “Zelenograd”).
- Tourist (“Turquoise Katun”, “Altai Valley”, “Baikal Harbor”, “Baikal Gate”).
- Logistic (“Soviet Harbor”, “Ulyanovsk”).
How it all started
SEZ began to develop in Russia in 2005 thanks to the adoption of the relevant federal law. In order to implement this bill, the Special Economic Zones OJSC was created. All his shares are at the disposal of the state.
Required paper
In order to become a resident of a special economic zone, a person who wants to is required to submit a business plan, a package of documents at JSC “SEZ” and, of course, an application for obtaining resident status. Next, you need to protect your own investment project at the Supervisory, and then at the Expert Council. With a favorable development of events, a tripartite agreement is concluded with JSC "SEZ" and the Ministry of Economic Development. The document regulates the process of conducting business on the territory of the selected special economic zone.
