Advisory council approves a new resident

he Advisory Council of the Ministry for Economic Development of the Russian Federation has approved an investment project for organization of mechanical stamping of aviation parts from titanium alloys in the “Titanium Valley” SEZ.

For the creation of a new high-tech center of machine stampings and production of ready parts from flat sections, the VSMPO-AVISMA Corporation has founded VSMPO - New Technologies LLC. It is planned to locate the enterprise in the special economic zone. Items planned for production (at the rough and semi-finished machining stage) are: glider-plane fuselage elements; wing elements, including components of wing mechanics; chassis parts; pole elements.  

Mikhail Voevodin, Director General of the VSMPO-AVISMA Corporation OJSC said:
“Today, the VSMPO-AVISMA Corporation is the world’s largest producer of titanium engaged in machining processes. But by 2017, our machining capacities will be insufficient to meet our production plans. In order to increase current capacity by 50%, we decided to build the second line for the machining center. The planned volume of investments into this project will exceed 70 million dollars. The decision to organize a new production facility in the “Titanium Valley” SEZ was taken on two criteria: economic feasibility and proximity to VSMPO”.

Artemy Kyzlasov, Director General of “Titanium Valley SEZ” OJSC said: "Realization of joint projects with VSMPO-AVISMA Corporation is a strategically important partnership for us. “Titanium Valley” is being created as a specialized special economic zone. And manufacturing of products from titanium is one of the priorities in our site development. For us, it is extremely important that the preferences and possibilities of the special economic zone should provide an additional impulse to production development and should allow not only the realization of a technologically and economically attractive project, but also ultimately strengthen the role of Russia in the world titanium market”.  
Protecting the investment project is a necessary step for subsequent conclusion with the potential resident of the agreement on realization of activities in the SEZ area with the Ministry of Economic Development of the Russian Federation and “Titanium Valley SEZ” OJSC.
It should be pointed out that initially, the “VSMPO-NEW technologies” project was approved by the Advisory Council of the Ministry of Economic Development of the Russian Federation in 2011; however, receipt of the official status of resident has been postponed till the beginning of SEZ infrastructure construction. The investment project of 2013 caters for the actual needs of the enterprise, taking into account long-term development plans and detailing technical parameters of future production.
The Advisory Council for industrial and production special economic zones under the chairmanship of O.G. Savelyev, Deputy Minister of Economic Development of the Russian Federation, met on 17.12.13.