Aluminum Association KRASNOYARSK TECHNOLOGICAL VALLEYS: NEW OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN RUSSIA

Transcription

1 Aluminum Association KRASNOYARSK TECHNOLOGICAL VALLEYS: NEW OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN RUSSIA

2 2 KRASNOYARSK REGION One of the largest regions in Russia Industrial capital of Siberia Extensive logistical network Krasnoyarsk Technological Valley 2,367 thous. sq. km 2.87 mln people bln roubles GRP in bln roubles investments in 2015 > 460 companies with participation of foreign capital (2016) KRASNOYARSK ALUMINIUM SMELTER : INDUSTRIAL LEADER OF KRASNOYARSK Capacity > 1 mln. tonnes liquid aluminium alloys (slabs, billets, ingots) high purity aluminum

3 3 ALUMINIUM TECHNOLOGICAL VALLEYS DEVELOPMENT PROJECT OBJECTIVES MARKET DEVELOPMENT AND STIMULATING DEMAND FOR ALUMINIUM-CONTAINING PRODUCTS IMPORT SUBSTITUTION CREATION OF FAVOURABLE INVESTMENT CLIMATE FOR NEW PRODUCTION FACILITIES REDUCING RISKS FOR INVESTORS DEVELOPMENT OF EXPORT EXPANSION OF ALUMINIUM APPLICATION IN NEW SECTORS AND DESIGN OF NEW PRODUCTS

4 4 PROJECT CONCEPT Delivery of liquid aluminium and alloys Land and property to lease (brownfield and greenfield) Existing infrastructure Competitive costs of utilities Tax and customs privileges Option for government funding and other financing New opportunities for development Access to the growing Russian and Eurasian Economic Union markets Supply of aluminum produced with renewable energy Opportunities for industrial and scientific cooperation with US RUSAL

5 PROJECT SITE

6 PROJECT SITE WITH READY-TO-GO INFRASTRUCTURE Available land plots for new projects 6 close to KRAMZ industrial facilities The first stage of the project is to be implemented using the readily available engineering, production and transport infrastructure 1st stage 2nd stage

7 7 INVESTMENT PROJECTS: OPPORTUNITIES FOR INVESTORS Development of rolling mill production plant Investments in the new aluminium wheels plant Production of wide range profiles for transport and construction Production of aluminium rondoles and tubes Production of high purity aluminium oxide Production of cookware Manufacture of aluminum cables Production of aluminum window frames and sandwich panel Production of aluminium frames for snowmobiles and bicycles

8 TRENDS: IMPORT RECOVERY AND GROWING EXPORT OF SEMI-FINISHED PRODUCTS TRENDS IN THE KEY SECTORS FOR CONSUMPTION IN RUSSIA (%, YOY) MARKET GROWTH BY SECTOR, 2017 /2016, 2016/2015 (KMT) Industrial PMI Index Automotive Machinery Construction Cable production Sales Turnover -7% -5% -5% DYNAMICS OF EXPORT OF ALUMINIUM GOODS FROM RUSSIA, 1H2017 (KMT, YOY) Flat Плоский rolled products прокат Foil Фольга Pipes Трубы и трубки Light-alloy wheels and Диски parts Экструзия Extrusion Литье, Casting, поковки, forgings, радиаторы heaters Металлоконструкции Metal structures порошки Powders и and чешуйки flakes Tubes Емкости, баллоны, тубы -3,6-0,3 1% 2% 0,1% 4% 1% 1% 0,6 0,4 0,2 0,1 1,2 1,2 9% 8% 10% -10% -5% 0% 5% 10% 15% f 3,8 Exports Экспорт of semis п/ф Imports of semis Импорт п/ф Secondary aluminium Втор.Al 4 Primary aluminium 2 Перв.Al (others) - Другие -8-4 Primary Перв.Al aluminum - Русал (RUSAL) / /2016 DYNAMICS OF IMPORT OF ALUMINIUM GOODS TO RUSSIA, 1H2017 (KMT, YOY) Casting, Литье, forgings, поковки, радиаторы heaters Light-alloy wheels Диски Flat rolled Плоский products прокат Металлоконструкции Metal structures Extrusion Экструзия Secondary вторичные aluminium сплавы Трубы и Pipes трубки Резервуары Tanks Емкости, баллоны, Tubes тубы Primary первичный aluminium алюминий Фольга Foil Кухонные Kitchenware, приборы и radiators радиаторы -2,7-0,3-0,6-1,0 1,6 1,2 0,9 0,6 0,6 6,7 5,8 5,7 8

9 9 9 LARGEST CATEGORIES OF IMPORTED ALUMINIUM PRODUCTS SHEETS AND STRANDS FOR CONSTRUCTION ~ 20 thousand tons per year STRUCTURAL SECTIONS AND CONSTRUCTIONS ~ 15 thousand tons per year LIGHT ALLOW WHEELS ~ 40 thousand tons per year HEATING RADIATORS ~ 50 thousand tons per year ALUMINIUM FOIL ~ 25 thousand tons per year ALUMINIUM COOKWARE ~ 10 thousand tons per year 138 thousand tons >70% Import VOLUME OF SEMI-FINISHED PRODUCTS IMPORTED TO RUSSIA CONSTITUTES OF FLAT ROLLED PRODUCTS, FOIL, CASTING, RADIATORS AND CAR WHEELS 9

10 10 KRASNOYARSK ALUMINIUM SMELTER INDUSTRIAL LEADER OF KRASNOYARSK No 1 UC RUSAL site in terms of output 1,024 Kt of output in % of aluminium produced worldwide 25 potrooms 3 casthouses 4,200 employees at the smelter 5,500 employees of contractors The unique Green Soderberg process Production of high-tech and innovative alloys

11 11 KRAZ PRODUCTS primary aluminium alloys (slabs, billets, ingots) high purity aluminium KEY SECTORS: 40% 40% доля высокотехнологичн ой продукции и сплавов в общем объеме производства of the total output are hitech products and alloys Aerospace Electronics Transport Construction PRODUCT SALES EUROPE Сitroen, BMW, Novelis, Constellium, Aleris, Montupet, Noble Group, Saint Jean Industries, Elval, Metalimex ASIA Toyota. Novelis Korea, Mitsui Co Ltd., Kosei Aluminum Co, Intelorg, Bluescope AMERICA Laurand Associates, Toyota Tsusho America, Beck Aluminum

12 12 KRASNOYARSK METALLURGICAL PLANT tonnes per year > employees PRODUCTS: slabs, billets, ingots, wire rod, pipes, rods and profiles, forging and pressing products Plant has experience in supplying products for export for 30 years in more than 30 countries

13 13 AN EFFICIENTLY OPERATING SUPPLY CHAIN Well-developed road and rail network, as well as water transport infrastructure, have allowed the company to successfully serve both domestic and export markets over the last 30 years AMERICA St. Petersburg Moscow Vanino Temryuk KrAZ Vladivostok EUROPE Novorossiysk km / 2 weeks from Krasnoyarsk to the major seaports Nakhodka AFRICA ASIA

14 14 SPECIAL TREATMENT OPTIONS FOR REGIONAL DEVELOPMENT KRASNOYARSK TECHNOLOGICAL VALLEY SPECIAL ECONOMIC ZONE Federal Law on Special Economic Zones in the Russian Federation (SEZ) or Compliance with WTO standards, international laws and practices

15 15 SEZ: SPECIAL TAX BENEFITS FOR INVESTORS TAXES AND RATES RUSSIA SPECIAL ECONOMIC ZONES Profit tax paid to federal budget 3% 2% Profit tax paid to regional budget 17% Max. 13.5% Property tax (the first 10 years) Land tax 1.5 0% (the first 5 years) Rates of insurance premiums for mandatory pension insurance Rates of insurance premiums for mandatory social insurance 22 % 2.9% in %, in %, in % in %, in % in % Rates of insurance premiums for mandatory medical insurance 5.1 % in % in % in %

16 16 SEZ: SPECIAL CUSTOMS REGULATIONS FREE CUSTOMS ZONE 0% Import duties on equipment, components and materials imported into SEZ 0% VAT on equipment, components and materials imported into SEZ 0% Export duties on finished products exported outside the Customs Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan)

17 17 MINISTRY OF INDUSTRY AND TRADE STRATEGY FOR DEVELOPMENT OF METALLURGICAL INDUSTRY ELABORATED UNTIL 2030 GOVERNMENT SUPPORT FOR ALUMINIUM INDUSTRY DEVELOPMENT Promotion of development of industrial territories Support and concessional financing for new industrial projects Legal support for development of the aluminium industry (aluminium for automotive industry, infrastructure, energy industry, construction, etc.) Stimulating demand for products of Russian origin Support for localising new production industries in Russia Special Investment Contracts and guarantees for investors

18 2 UC RUSAL: GLOBAL LEADER IN ALUMINIUM PRODUCTION Main products: Supplying aluminium to all key markets: primary aluminium alloys aluminium foil and powder Europe, North America and Asia, Russia and other CIS countries 3.7 mln tonnes produced by RUSAL in % share of value added products in 2016 > 40 production facilities and sites 700 major clients 6.2% of global aluminium production 61,000 employees around the world UC RUSAL has initiated the creation of technological valleys in Krasnoyarsk, Volgograd and Khakassia in order to promote innovation in industry

19 19 RUSSIAN ALUMINIUM ASSOCIATION The mission of the Association is to create optimum conditions for the development of the Aluminium Industry in Russia 2015 Establishment of the Aluminium Association in Russia 70 Members Technical Committee 099 Working group for standardization of aluminum-containing products MAIN FOCUS AREAS Innovative industrial development in Russia, creating conditions for new facilities, technologies and products Market development and expansion of demand Development and improvement of regulatory framework Standardisation and improvement of product quality Educational programmes

20 20 CONTACTS For questions concerning the project please contact: 1) Igor Marchev the Head of the project 2) Vlada Usova the Manager of the project