40 new facilities launched in Chelyabinsk Region

Governor of Chelyabinsk Region Petr Sumin held a meeting with the investors participating in the 9th Ural Investment Forum.

The Governor noted that despite the economic hardships the local investors were not going to back out of their plans, even though some of the projects had to be delayed. The previous year’s forum, for example, resulted in 107 agreements (worth $14bn or 400 billion RUR) that were signed by investors, the regional government, and the local municipalities. Of these 107 projects, twenty have already been implemented successfully, while the rest are still in progress.

Petr Sumin said the greater part of investments kept coming from the region’s major enterprises, with their own funds amounting to more than 50% of all the investments in the regional economy. As a matter of fact, over forty new industrial facilities have been launched in the region this year, with thirty more businesses to start operating before the end of the year. Governor Sumin mentioned the launch of Mill 5000 at Magnitogorsk Iron & Steel Works (MMK) as the most obvious example. MMK Management Company’s Vice President Vladimir Shmakov reports the economic hardships did not prevent the enterprise from keeping up with the investment volume. The company has actually invested over 34 million RUR in production upgrade this year. Next year, the figure is expected to increase up to 35.5 million RUR.

‘Other large enterprises such as Chelyabinsk Metallurgical Plant, Chelyabinsk Tube Rolling Plant, and Chelyabinsk Tractor Plant follow suit in that they keep upgrading their production facilities, which is paramount to overcoming the recession,’ Governor Sumin said.

The spokesperson for the Governor reports there are many foreign companies among the investors interested in setting up a business in the region. The French Leroy Merlin Vostok is going to put up a household appliances hypermarket, for instance, while Auchan is hoping to set up a grocery hypermarket there.

All in all, over ten new investment projects were discussed at the meeting.

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