VSMPO-Avisma Will Increase Production Output By 20% In 2011

In 2011 VSMPO-Avisma Corporation will increase the amount of investment in production growth up to $250 million. It is half of the amount intended for investment in renovation by the corporation management till 2015.

As it was stated by Mikhail Voevodin, General Director of VSMPO-Avisma, implementation of many investment projects was intentionally postponed till 2011-2013. Most likely, their revival has been triggered by the Russian government's order concerning establishment of the Titanium Valley, a special economic zone, in the Sverdlovsk Region, with VSMPO-Avisma taking the key role. The corporation is planning to invest $100-150 million in the special economic zone project.

VSMPO-Avisma's press service informed that in 2010 the corporation shrank its credit portfolio by $100 million. The second half of the past year witnessed an increase in orders for the products made by the monopoly manufacturer of Russian titanium.

Mikhail Voevodin anticipates that the corporation's production output will increase at least by 20% in 2011 as compared to 2010, thus making it possible for VSMPO-Avisma to regain its before-crisis production levels. 

Based on the official records, over January-September of 2010 the corporation's after-tax profit amounted to 384.75 million rubles at the operating revenue totaling 17,771 billion rubles.

Titanium Valley - Special Economic Zone In Sverdlovsk Region of Russia

2011 will see the development of the first phase (300 hectares) of the Special Economic Zone, Titanium Valley, in the Sverdlovsk Region. 

On December 16th in 2010, the Prime Minister Vladimir Putin signed the ordinance for development of Russia's fourth special economic zone.

By 2016, the total area of the Titanium Valley will amount to 700 hectares. Its anchor resident will become the VSMPO-Avisma Corporation, which initiated the creation of the special economic zone. Arvi, SR Systematics, MAG, and the United Aircraft Construction Corporation announced their intention to become residents of this zone.

It is planned that the residents will not pay property, land and transport taxes; the profit tax rate will be decreased from 20 to 15.5%. The Titanium Valley will have the status of a free customs zone: the residents will have the right to import goods to Russia without paying customs duties and VAT.

The prerequisite for being qualified as a zone resident is investment equal to minimum 3 million euro in industrial production operations performed within the Special Economic Zone, provided that minimum 1 million euro has been invested within the first year upon registration. At the initial stage of operations in the Titanium Valley, the total amount of investment is estimated at about 40 billion rubles.

By materias of Rusbiznews