SEZ «Alabuga»: largest in Russia and best in Europe

«Alabuga» SEZ joined the ranks of the most effective special economic zones in Russia and remains in demand by the largest global companies – among its residents - Ford, 3M, Armstrong, Rockwool, Huhtamaki and other global brands. Around 80 % out of $3 billion of resident’s investment were contributed by foreign companies. From the strategic perspective, «Alabuga» plans to create a new joint venture to attract no less than 45 investors from China.

The most successful in Russia and the best in Europe special economic zone «Alabuga» located in Tatarstan attracts investors with a number of doubtless advantages:

Developed infrastructure and availability of key logistics channels

On 4000 hectares of land plot «Alabuga» has already developed 26 kilometers of highways and 12 kilometers of railways. «Alabuga» SEZ has its own container yard and customs post, it has access to inland waterways, airport and M7 federal highway. «Alabuga» also has its own thermal power station, sewerage and power supply systems. «Alabuga» offers its guests a hotel complex, the employees permanently residing may enjoy a modern cottage complex and an International School accredited by the International Baccalaureate (IB) system.

Benefits for residents

Companies in «Alabuga» are exempted from paying property, land and transport taxes, income tax is only 2%. Under the current free customs zone regime, imported equipment used on the territory of «Alabuga» is exempted from customs duties and VAT.

Current 56 companies already enjoy these preferences: 29 enterprises have already been launched, including Ford, 3M, Armstrong, Air Liquide, Rockwool, Kastamonu and many others. A new project called «Grodan» - substrate producing factory - run by the current resident Rockwool which decided to expand on the territory of the SEZ is halfway to its launching ceremony. Industrial premises for resident companies may be built by «Alabuga» itself, for these purposes a special company «Alabuga-Development» was established, providing residents with subcontracting services. It is this specialized company conducting the factory construction for Rockwool company.

From the strategic perspective, up to 45 companies are expected to join «Alabuga» SEZ from China. The joint venture with investors from China provides the involvement of a strategic Chinese partner for the further development of the special economic zone infrastructure and attraction of new investors.

«External investments for Chinese companies are quite a new thing. Nevertheless, poll found that 85% of Chinese enterprises plan to make external investments in the upcoming 5 years. Therefore, our goal is to be fully prepared for these investments in terms of infrastructure development, our competencies and efficiency» - emphasizes the CEO of the SEZ «Alabuga» Timur Shagivaleev.