Elektrogorsk Furniture Cluster

Russia

Accessibility

Elektrogorsk is a town in Moscow Oblast, Russia, located 75 kilometers (47 mi) east from Moscow.

Economic zone in Elektrogorsk

  • Area of the land plot requested m2: 2 000 000 (200 hа)
  • Land category: 15,5% for 7 years
  • Production 0% - 1st year;
  • Sanitary protective zone (m): 300
  • Electric power supply 17,6 МW+12,0 МW, reliability rate II
  • Gas supply: m3/year - 297 923 220; М3/h - 34 009,5; Pressure - Average 3 bar
  • Water supply: Drinking water (m3/24 h) - 12,984; Technical water (m3/24 h) - 158,196
  • Water discharge of utility fluids (m3/24 h): 12,984
  • Strom water discharge (m3/24 h): 135,648
  • Cargo turnover by trucks (trucks/24 h, load capacity): 104 units/24 h – cargo transport, 20 tons; 72 units/24 – cars
  • Railways available (need, cargo turnover of wagons/24 ): 70 wagons/24 h
  • Number of working places: 160-180 (ООО «Kronospan»), 900 (Furniture cluster)
  • Average salary: 35 000 rubles/month
  • Investment amount into the project: 120 million Euro
  • Timber demand: Needle-leaved pulpwood of the 1st quality (fir, pine) – GOST 9463-88 –1,4 million stacked cubic meters

Development - facts and figures

FDI

In 1999, investment increased by 4.5%, the first such growth since 1990. Investment growth has continued at high rates from a very low base, with an almost 30% increase in total foreign investments in 2001 compared to the previous year. Higher retained earnings, increased cash transactions, the positive outlook for sales, and political stability have contributed to these favorable trends. Foreign investment in Russia is very low. Cumulative investment from U.S. sources of about $4 billion are about the same as U.S. investment in Costa Rica. Over the medium-to-long term, Russian companies that do not invest to increase their competitiveness will find it harder either to expand exports or protect their recent domestic market gains from higher quality imports.

Foreign direct investment, which includes contributions to starting capital and credits extended by foreign co- -owners of enterprises, rose slightly in 1999 and 2000, but decreased in 2001 by about 10%. Foreign portfolio investment, which includes shares and securities, decreased dramatically in 1999, but has experienced significant growth since then. In 2001, foreign portfolio investment was $451 million, more than twice the amount from the previous year. Inward foreign investment during the 1990s was dwarfed by Russian capital flight, estimated at about $15 billion annually. During the years of recovery following the 1998 debt crisis, capital flight seems to have slowed. Inward investment from Cyprus and Gibraltar, two important channels for capital flight from Russia in recent years, suggest that some Russian money is returning home.

Political and business stability

Russian economy in recent years has undergone significant changes, it has become more stable and open. This is confirmed by the leading rating agencies and macroeconomic indicators.

  • Russia is a member of international organizations such as the UN, CIS, EurAsEC, CAC, CSTO, SCO, APEC, BRICS and others.
  • Currency – Russian Ruble (average rate has varied between 29 and 35 rubles per 1 U.S. dollar).
  • Russia has a balanced budget policy and one of the lowest public debt in Europe and in the world – about $ 150 billion, or 8 % of GDP.
  • The volume of foreign exchange reserves is more than $ 500 billion putting Russia in third place in the world (after China and Japan).

Strategic location

The cargo transportation in the Russian Federation is facilitated by the following:

  • Main seaports of the Russian Federation are as follows: Dalnevostochnyi (the main sea hub of the Russian Federation with its ports Vladivostok and Nakhodka), the northern basin ports- Murmansk, Arkhangelsk (seaport and river port at the same time), Dudinka and Igarka; the third main basin is the Baltic basin (with its main ports in Saint-Petersburg – Vyborg, Ust-Luga and Primorsk; and Kaliningrad); the forth main maritime basin is the southern one (with its ports in Novorossiysk (the most powerful port of Russia) and Tuapse. The biggest ports of the Caspian Sea are represented by Astrakhan (sea port and river port at the same time) and Makhachkala).
  • Ten major airports: Sheremetyevo (Moscow), Domodedovo (Moscow), Vnukovo (Moscow), Pulkovo (saint- -Petersburtg), Koltsovo (Ekaterinburg), Sochi, Tolmachevo (Novosibirsk), Krasnodar and Ufa.
  • Creation of the transport corridor “Primorye-1” (The directions: Harbin – Suyfenghe – Grodekovo-Vladivostok/ Vostochnyi-Nakhodka); and “Primorye-2” (which conncted the Chinese province Czilin with the ports of Slavyanka, Zarubino and Possiet).

Potential market

  • The European Union occupies a particular place in the external trading structure of the Russian Federation. In 2008 52% of the Russian trade turnover is accounted for the European Union. Main trade partners of the Russian Federation are: China, the Netherlands, Germany, Italy, Ukraine, Belarus, Turkey, Japan, USA, Poland and Kazakhstan.
  • In July 2010 the Customs Union of Belarus, Kazakhstan and Russia was organized. Creation of the Customs Union allows stimulating the economic development and can provide additionally 15% to GDP.
  • In March, 2010 Heads of the agricultural Ministries of Brazil, Russia, India and China signed the declaration on the collaboration, which foresees implementation of four directions of the multilateral collaboration. In particular, increase of the agricultural goods turnover, with the further creation of the agricultural informational base of BRIC countries.

Human resources

An average monthly salary in the Russian Federation is equivalent to € 395 (2015). Work force in the Russian Federation is multilingual, well-educated and highly-skilled.

  • 54% of the total population is in working age (approximately 76.1 mln people) Russia counts about 272 accredited universities, 620 State universities and approximately 352 non-governmental ones.
  • 95% of the high school students study a foreign language (mostly English language), 70% of them is studying another languages, such as German, French, Chinese, Italian and Spanish.
  • 54% of people at the age of 25-64 are graduated from high education institutions. 97% of the schools have Internet access.

Current potential of Kronospan in Russia

EGORIEVSK (annual):

  • m3 of PB
  • m2 of MF PB
  • m3 of MDF
  • m2 of MF MDF
  • m3 of HDF
  • m2 of LHDF
  • m3 of OSB
  • m2 - flooring
  • m2 - wall panels
  • decors in laminated boards

ELEKTROGORSK (annual):

  • m3 of PB
  • m2 of MF PB
  • decors in laminated boards

KRONOSPAN PROVIDES EFFECTIVE DELIVERY, DUE TO ITS PRESENCE IN ALMOST ALL WORLD MARKETS.
A lot of manufacturing plants that operate in the whole of Europe, including Russia, will provide convenient delivery of products to your company.

For more information regarding Kronospan facilities and local business environment
please download our Elektrogorsk cluster brochure.

Elektrogorsk cluster brochure

Download Now

 

Contact us

OOO Kronospan Elektrogorsk
Promzona, Sovetskaya str.
142531 Elektrogorsk
Russia
T +7 495 988 75 01

elektrogorsk@kronospan.ru
www.kronospan-express.com