TOGLIATTI TOWNSHIP 1924-1946 – rural settlement, 6-9 thousand people; beginning of 1950s – 12 thousand people; 1966 – 90 thousand people It is the largest Russian city not being the center of the constituent of the Russian Federation. Also, It is the 17 th Russian city by population Founded in 1737 3 isolated city districts: Avtozavodsky, Komsomolsky, Central 720.5 thousand citizens
TOGLIATTI TOWNSHIP Construction of HPS Stavropol–on-Volga Togliatti Togliatti is a three times- born city, as they say Stavropol was established as a fortress in 1737 by Vasily Tatishchev, the associate of the Russian emperor Peter I In 1950, it became the center for construction of the Volga Hydroelectric Power Station (HPS) named after Lenin. Due to filling in the bed of the Kuibyshev Water Reservoir the city appeared anew on the left bank of the Volga River. In 1964, the city was named Togliatti. In 1966, the construction of the Volga Automobile Plant, the largest car manufacturing plant in Russia, began.
Federal motorway M5 Moscow – Chelyabinsk runs through Togliatti, Samara International Airport is located in one-hour drive away from the city center; there is an own river port serving the “river-sea” type of vessels, a railroad, etc. INFRASTRUCTURE OF THE REGION
DEMOGRAPHIC SITUATION Togliatti Township population 719.5 thousand people Men 46,1% Women 53,9% Of the total number of citizens in Samara Region 22.4 % Average age 38
EMPLOYMENT AND MANPOWER MARKET The number of manpower resources constitutes approximately 492.6 thousand people, its share in the total amount of the population is 68.3 %. Working age – 64% Above the working age – 20.2% Below the working age - 15.8% 19,555.4 RUR Average salary for January-April 1.03.2011 1.69% Number of unemployed relative to employable age population 7, 809 people Number of unemployed registered with GU Employment Center as of 15.07.2011
SPORT SPORTS in Togliatti 19 Municipal sports schools dealing with more than 55 kinds of sports 83 World and European Champions 11 Olympic and Deaflympic Champions and Prize Winners of Olympic and Deaflympic Games 16, 000 children, teenagers, young people going in for sports In 1992, a team consisting only of Togliatti mountain-climbers, conquered Everest, the highest peak of the planet (8,848 meters) for the first time in the world 239 Different sports competitions held in Togliatti in which 70, 729 people took part The world’s most massive tourist boating campaign is held in Togliatti – for 9 days more than 700 people are row-boating down the river (140 km)
EDUCATION The educational system of the City of Togliatti is represented by the institutions of different types and forms, implementing programs of pre-school, supplementary and vocational education that meet the requirements of the community 149 pre-school educational entities 600 educational programs upon 10 profiles are implemented in the entities for supplementary education 85 municipal entities of general education System of Education in Togliatti 46 entities for supplementary education 54 municipal pre-school entities render correction support to the handicapped children of pre-school age 168 Togliatti teachers were financially encouraged for high professional skills within 2006-2009 in accordance with the Decree of the RF President
HEALTH CARE Health Care in Togliatti Today, the Health Care Service is represented by the municipal health care institutions, public health care institutions, as well as by private doctor’s offices of various profiles. Municipal medical and health care preventive institutions: 8 City out-patient hospitals 5 City clinic hospitals 1 City infection Hospital 1 City Health Center 3 Dental clinics 2 Municipal health care institutions
CULTURE Culture in Togliatti Culture in Togliatti is a unique phenomenon for a young Russian city having an interesting history of 273 year duration. 35 places of worship and religious institutions 22 national and cultural centers 100 entities of culture and arts of different forms of property 17 arts educational entities including all phases for arts education from school up to universities (more than 7,000 people study) 120 architectural and sculptural memorials of culture 4 municipal museums (museums stocks amount more than 829, 000 units (documents, objects of ethnography, painting and sculpture) 3 professional theatres 6 creative unions of writers, artists and designers
TOURISM Tourism in Togliatti 130,000 people visited Togliatti in 2009 460 exhibits are located in museum and park complex – OAO AVTOVAZ Technical Museum 37 large tourist events are annually held in the City of Togliatti 42 hotels are located in the City of Togliatti Zhiguli Snow maiden lives at the foot of the Zhiguli Hills. Every year she welcomes All-Russia Grandfather Frost coming to visit from the City of Veliky Ustyug. In 2011, it is planned to hold a World Touring Car Championship in Togliatti.
Upon results of 2010 As of results of first year-half of 2011 Togliatti Samara Region TogliattiSamara Region Industrial production index (to the previous year), % 137,2115,6135,7115,3 Rate of unemployment growth (to the previous year), times 0,580,60,60,530,530,64 Number of officially unemployed people by the end of a year, thousand people 9,89,834,98,030,0 Official unemployment level, % 2,12,121,7 Real wages dynamics, % 102,4103,9114,8103,8 SOCIAL AND ECONOMIC INDICATORS FOR TOGLIATTI TOWNSHIP
KEY INDICATORS FOR THE ECONOMY DEVELOPMENT IN 2008 – 2010 The world financial and econonomic crisis exerted negative influence on the activities in Togliatti industrial complex 200920102011 Sales of the manufactured goods in billion rubles 175.5254.6 First 5 months - 119.3 Index of industrial production, % 56.4137.2 First 5 months- 135.7 Overall investments (into fixed assets) including all financing sources, billion rubles 11,510.4 First year quarter – 2.5 Commissioning of residential buildings, in thousands of sq.m. 96 200161 600 First year- half 36 200
MAIN ENTERPRISES OF MACHINE BUILDING AND CHEMICAL COMPLEX The major enterprises of Russian machine building and chemical industries represent the basis of the city’s economy: AVTOVAZ, GM - AVTOVAZ, Togliattiazot, KuibyshevAzot, AVTOVAZAGREGAT, TOGLIATTICAUCHUK, TOGLIATTI TRANSFORMATOR
STRUCTURE OF MANUFACTURED PRODUCTS SALES Chemical Production – 22.8 % Production of electrical equipment – 2.1 % Production of vehicles and equipment – 66.2% Production of foodstuffs – 4.1 % Other products – 4.8%
OAO AVTOVAZ IS THE LEADING ENTERPRISE IN TOGLIATTI TOWNSHIP Рынок Тольятти, России, Экспорт The automotive industry, including production of automotive components, remains the key sector in the economy of Togliatti Since 1970, AVTOVAZ manufactured over 26.000.000 LADA vehicles and automotive assembly sets. AVTOVAZ supplies its vehicles all over Russia, exports to Ukraine, Byelorussia, Kazakhstan, Azerbaijan, Uzbekistan, Georgia, Egypt, and the European countries. Today, LADA vehicles present 57% of the national motor vehicle fleet. More than 25% of the annual auto sales in the Russian market fall onto the brand of LADA. AVTOVAZ is an equal-right partner of Renault-Nissan alliance. According to the business plan of AVTOVAZ, 1.200.000 vehicles will be manufactured with the factory’s production capacities by the year 2020, under three brand names: LADA, Renault and Nissan – in total, 9 new models, built on unified platforms.
A Comprehensive Investments Planning (CIP) is implemented over the territory of Togliatti. It is targeted to form a strategy for the city development that provides for a number of priority guidelines for state and private capital investments. COMPREHENSIVE INVESTMENTS PLANNING CIP of Togliatti envisages 22 projects of different industrial profile, scale and financing sources, as well as implementation timeframes 3 2 1 5 4 Establishment of Special Economic Zone of tourist and recreational type Creation of Special Economic Zone of industrial and production type Other projects Establishment of Togliatti industry and technology Establishment of IT-Park “Zhigulyovskaya Valley” Main projects
STRATEGIC PLAN FOR TOGLIATTI TOWNSHIP DEVELOPMENT UP TO 2020 Preservation and improvement of environment for vital activity Pilot projects and international collaboration Local self-government development Development of people’s potential Economic development on the basis of diversification and promotion of innovative economy A Strategic Plan for Togliatti Township Development up to 2020 that provides for 5 focal areas, has been adopted and is being implemented in Togliatti:
EXPECTED RESULTS Expected results upon the implementation of the strategic plan up to 2020 (as compared with 2010) 366,4 % 227 % 32 % 200 % Investments into fixed capital Industrial production index Share of backbone enterprises in the industrial production output Number of small businesses Main mechanisms for implementation of the Strategic Plan are provided for in the Program for comprehensive social and economic development of Togliatti Township up to 2020, as well as in a number of long-term and administrative targeted programs designed for the above mentioned areas of development
SPECIAL ECONOMIC ZONE OF INDUSTRIAL AND PRODUCTION TYPE ✍ Federal Law “On Special Economic Zones in the Russian Federation No.116-FZ dated July 2, 2005. ✍ RF Government Decree dated August 12, 2010, No. 621 “ On creation of the special economic zone of industrial and production type in the territory of Samara Region” For first 5 years For profit tax of the businesses in industrial and production Special Economic Zones: - Fast-track procedure for recognition of R&D costs; - Accelerated depreciation; Tax DescriptionRate For Residents Profit Tax*, in %2013.5 Property Tax*, %2.22.20 Land Tax*, % 1.51.50 Transport Tax*, RUR 6 - 900 FREE CUSTOMS ZONE MODE: IMPORT DUTIES 0% VAT 0%
*Rate without VAT as of December 2010. Change of the tariff depends on consumption (number of hours). **Rate is effective within the territory of Stavropolsky District, Samara region. The values are indicated without VAT applicable within the territory of Stavropolsky District, Samara region, and are effective for December 2010 EUR /1000m366 Natural gas (depends on tariffs) ParameterRate/ TariffUnit Land rent in SEZ** 177 71 EUR/ha EUR/acre Land value in SEZ** 17 725 7 090 EUR /ha EUR/acre Construction of a standard industrial building from 395 EUR /m2 Electrical power supply* (depends on tariffs) 50 EUR /MW-h Water supply (including tariffs for drinking water and industrial water) 0.24 EUR /m3 Sewage water 0.22EUR /m3 Drainage 0.099EUR /m3 SPECIAL ECONOMIC ZONE OF INDUSTRIAL AND PRODUCTION TYPE 100% BUSINESS ENVIRONMENT INFRASTRUCTURE 100% INDUSTRIAL INFRASTRUCTURE
ADVANTAGES OF RUNNING BUSINESS IN TOGLIATTI TOWNSHIP Municipal and State Bodies Activity Support and development of large, medium and small businesses. City authorities expressing interest and providing support in drawing in foreign businessmen to invest into the city. Labor Resources Well qualified and inexpensive manpower. High level of training and retraining of workers. Cooperation with the educational institutions. Infrastructure for running business Highly developed infrastructure (M5 motorway, international airport, railroad, river port, available power-generating capacities, etc.). Available production sites, warehouse facilities, office premises. Unused land plots in the city area. Lack of mass traffic jams. Recreation industry Infrastructure arranged for recreation (beaches, health care institutions, foreign TV channels, restaurants, shopping malls, etc.). Availability of personnel speaking foreign languages in restaurants, hotels. The following main advantages of running business in Togliatti were determined upon the results of an opinion poll held among Togliatti- based foreign companies.
DEVELOPING BUSINESS IN TOGLIATTI Have you decided to develop your business in Russia? Are you considering the idea to establish a new production facility at the territory of Togliatti Township? We will offer you support 2. MEETINGS COORDINATION: The Department will assist you in preparation of the schedule for your stay in the City of Togliatti, meetings with the representatives of the local enterprises and authorities, will provide an interpreter/coordinator for the meetings 1.VISA SUPPORT: The Department will issue a letter of invitation for your Company representatives, to obtain a one- year visa 3. ACCOMODATION: The Department will assist you in making hotel reservation, and arrange your transfer from the airport. 4. SEARCH OF THE SITE for your facility location: The Department will provide you with the city-largest data base regarding the availability of available private and municipal production facilities, warehouse and office premises 4. INFORMATION SUPPORT: The Department will make information available on the investor support programm in Togliatti, facilitated by the city and regional authorities, etc. !
We will be happy to answer any further questions. Foreign Economic Relations Department and Territories Marketing, Economics Development Division, Office of the Mayor, City of Togliatti Russia, Samara Region, 445020, City of Togliatti, 33, Belorusskaya St., office 501, phone:(8482) 637 799, fax: (8482) 638 602 THANK YOU FOR YOUR ATTENTION!