8 organizations received the status of a resident of the FEZ "Vitebsk" in 2018. What projects are they implementing?
A solid foundation for this was laid in 2018, both in terms of organizational development of issues and in the practical implementation of innovations. The most relevant and large-scale project for the FEZ is the expansion of the energy capacity of its constituent sites.
In Vitebsk alone, on the territory of the former military airfield in Zhurzhevo, it is necessary to increase the electrical capacity by almost half to 100 MW. At this stage, possible solutions have been worked out, and a project is being prepared.
A monitoring of energy needs will be carried out across all 16 sectors of the FEZ. The ultimate goal is to minimize the time from the decision to build to the launch of production facilities.
SERVICES AND ROADS
Among the priority infrastructure projects are the completion of the road section at the airfield site and the reconstruction of the aging air traffic control tower into a service facility, the main purpose of which will be to solve the problem of hot meals for a thousand specialists working in Zhurzhevo.
In addition, it is planned to create an exhibition area for the Vitebsk FEZ enterprises, a negotiation zone, and office space for current and potential residents in the modernized center.
The development of the road network will, in particular, ensure uninterrupted transport communication when the railway crossing is closed. It is planned to allocate at least 3.3 million rubles for these purposes, which is approximately eight times the volume of infrastructure investments in 2018.
INVESTMENTS AND JOBS
Efforts to minimize infrastructure risks and improve the business environment, coupled with a long-standing reputation as a reliable partner, are already yielding results.
Mikhail Skurat, Head of the Administration of the FEZ "Vitebsk": In 2018, eight organizations obtained resident status. The amount of investments declared for their projects exceeds 232 million dollars, which is almost 41% of the total investment volume for all previous years of the FEZ's operation.
The businessmen will be engaged in the creation of a woodworking complex, the organization of optical fiber production, electronic components and control systems for the machine-building complex, and metal-cutting and auxiliary tools. Approximately 460 jobs will be created during the implementation of these projects.
The most ambitious plans among the newcomers are being implemented in the FEZ by the company "VMG WoodArt," which is part of the international holding "VMG" with its central office in Klaipeda (Lithuania). The investor intends to invest more than 100 million euros by the end of 2023 in the construction of a vertically integrated wood processing complex.
In the first half of the current year, it is planned to register seven more enterprises as residents.
The majority of projects are intended to be implemented by investors on new sites of the FEZ "Vitebsk," which became part of it in accordance with Decree No. 346, including in the territories of Polotsk district, Novopolotsk, and Orsha.
Investors from Sweden plan to organize the production of polymer-modified bitumen.
Two projects are planned to be implemented by businessmen from Poland. A company from Estonia is exploring the possibility of establishing a furniture business. The total volume of declared investments exceeds 120 million dollars. An important aspect is the planned creation of at least 400 jobs.
GROWTH RATES
In 2018, FEZ residents most dynamically increased their export of services, which amounted to 53.7 million dollars by the end of the year, more than 2.5 times higher than in 2017. At the same time, the positive foreign trade balance for services was almost 40 million dollars, and for goods – 263.5 million.
Exported products amounted to $664.4 million, which is almost 20% more than in the previous period. In 2018, $31.5 million of foreign investment was attracted, including $31.2 million in direct investment (growth rate of 100.6%), which accounted for more than 40% of the regional indicator.
Among other indicators of enterprise performance, the growth rate of industrial production can be highlighted, which was 117.3%. Revenue from the sale of goods, works, and services increased by 30%. In general, residents worked with a net profit ($62.5 million). 369 jobs were created. About 150 million rubles of taxes and fees were paid to the budget, which is almost 20% more than in 2017.
By tradition, the FEZ administration summed up the results of the competition among enterprises, held annually in five nominations.
OJSC "Design Bureau "Display" became the best resident of 2018 and the owner of the challenge honorary banner, demonstrating stable performance in all economic indicators stipulated by the conditions of operation in the FEZ.
SOOO "TransEkspeditsiya" was recognized as the best exporter – its share in the total volume of foreign trade supplies of FEZ goods was 25%, and in the export of services – almost 70%. The winner's diploma in the "Best Investor" nomination was awarded to IP "VIK – animal health" for the second year in a row.
In addition, diplomas of the FEZ administration for stability and reliability were awarded to OOO "Allianceplast", OOO "Production Association "Energokomplekt", ZAO "Vitebsk Machine-Building Plant "Novmash", SOOO "Manuli Hydraulics Manufacturing Bel", and OOO "Modern-Expo".