Wiki on Titanium Valley
Titanium Valley is a planned special economic zone in Sverdlovsk Oblast in the Urals Federal District of Russia, which will focus on creating titanium products for the aircraft, automotive, shipbuilding and medical industries. It will be created around the world's largest titanium producer, VSMPO-Avisma. The Russian government plans to invest at least 40 billion rubles ($1.29 billion) for the project.
The purpose of the special economic zone, to be located in the city of Verkhnyaya Salda, is to give enterprises the opportunity to develop and produce value added products in the region and bring international partners to the zone. A total of 20 companies will participate in the project, and it is expected to create 20,000 jobs in the city. The participating companies include VSMPO-Avisma, Arvi, SR Systematics, MAG[disambiguation needed], and United Aircraft Corporation. Companies operating in the zone will enjoy preferential tax treatment, and Governor of Sverdlovsk Oblast Aleksandr Misharin has stated that he expects the incentives to enable the companies to produce globally competitive products and create new jobs.
While visiting the region, Prime Minister Vladimir Putin said on 13 November 2010 that a decree for creating the special economic zone will be signed in two weeks. Titanium maker VSMPO-Avisma has already spent $700 million in preparation, and Russia's leading pipe producer ChelPipe has also already spent over $630 million into modernizing its facilities. Foreign companies considering to create production facilities in the zone include Rolls-Royce Group and Goodrich Corporation.
The "Titanium Valley" project is part of Russia's ongoing effort to modernise and diversify its economy, one of the main programs of Dmitry Medvedev's presidency.
Titanium Valley is a special economic zone of industrial type, located in Sverdlovsk region. Priority directions of the SEZ are: titanium metal products, machinery for all industries (production of means of production, manufacture of components), construction materials, and chemical industry. The special economic zone is located in Verkhnyaya Salda - 40 km away from Nizhni Tagil and 180 km away from Ekaterinburg. One of the largest producers of the semi – processed materials from titanium alloys, designed for the airspace - “VSMPO – AVISMA” is located nearby. That is what defined a choice of the name for the special economic zone.
Sverdlovsk Region, Titanium Valley
Titanium Valley Special Economic Zone is located in the territory of Sverdlovsk oblast. The competitive advantages of the territory include: availability of raw materials, specialized staff resources and educational institutions, relevant infrastructure, developed logistic networks, export potential of future residents of the special economic zone.
There are qualified human assets with higher and specialized secondary education working in the mechanic engineering, metallurgy, electric power industries. It is planned to train personnel according to the projects requirements.
500 km away from the Titanium Valley, there are enterprises manufacturing all kinds of metals located:
•VSMPO-AVISMA Corporation OAO – supplier of titanium parts for such companies as Boеing, Airbus, Rolls Royce, Goodrich, Embraer, GE.
• EVRAZ Nizhniy Tagil Iron and Steel Works OAO – one of the nine major Russian integrated steel-smelting plants belonging to Evrazholding.
• UralVagonZavod Scientific Industrial Corporation OAO – the largest in the Russian Federation manufacturer of tanks and carriages.
• Uralchimplast Group
The area of the Titanium Valley Special Economic Zone makes 584.4 hectares.
The special economic zone is named Titanium Valley. However this does not limit lines of business of the industrial enterprises operating in the SEZ.
The main purpose of the SEZ is set up of high-tech enterprises in the following industries:
• mechanic engineering,
• mechanical processing,
• aircraft engineering,
• chemical industry,
• pharmaceutical industry,
• building industry.
The main transport, engineering and social infrastructure facilities will be created at the expense of the regional budget, as well as at the expense of off-budgetary sources.
Latest News I Could Find
MOSCOW, May 16, 2013 /PRNewswire/ -- Russia has plenty of natural resources to offer to the global market, but recently the country started promoting its new and exciting product – consumers. With population topping 140 million people, Russia has always been an attractive market, subject to the poor economic climate and other barriers. In 2012 and 2013, however, Russian government formed 'special economic zones' – business and industrial hubs aimed at creating 'entry points' for global companies that incorporate production capacity, abundant natural resources, labor pool, infrastructure, tax incentives, and access to the consumer market.
The Titanium Valley, one of the 'special economic zones' is located in the Urals, Russia's industrial and mining heartland. The region is home to the world's largest titanium production facilities; titanium is an essential material widely used in aircraft manufacturing and other industries. The special economic zone, by attracting major Russian and Western aerospace corporations, is creating a unique industrial hub similar to Seattle. Major aerospace companies, like Boeing, VSMPO-AVISMA, and other companies became the residents of the Titanium Valley.
In a roundtable hosted by the economic zone's management in Hannover during the 2013 Hannover Messe, Titanium Valley's CEO Artemiy Kyzlasov said that the hub is becoming an entry point into Russia for multinational corporations: "It has tax breaks and customs relief, optimization of logistics and excellent skilled labor potential. We are not only interested in investment in the region, but rather in a system for integrating international manufacturing in the region's infrastructure, with every new special economic zone resident creating benefits for the other residents, developing and enhancing the production chain. Both the regional and federal governments support this. You could say that we are building an aviation and manufacturing Hollywood here, where all the industry players – directors, actors, models, screenwriters – are concentrated in one area, educating one another."