Investors from 4 countries are showing interest in implementing projects at the FEZ "Vitebsk" sites
For instance, an investor from Sweden, in cooperation with a partner from China, is prepared to invest around $100 million in the construction of a plant for processing low-grade timber. Representatives from the Netherlands are seeking a site to organize furniture production with an investment volume of approximately 100 million euros. Simultaneously, they are exploring cooperation options with existing residents of the "Vitebsk" FEZ for the procurement of materials to manufacture final products. A German company plans to establish a production facility for decking with an estimated cost of around $9 million. Chinese businessmen have already registered a legal entity in Vitebsk to work on projects also in the woodworking sector, with an anticipated investment volume of about $26 million. According to preliminary estimates, the creation of over 1,000 new jobs in total is expected.
The intensification of investment activity has become possible largely due to the implementation of projects for the development of engineering and transport infrastructure worth approximately Br25.5 million in the "Zhurzhevo" sector. It is located on the outskirts of the regional center, where about 500 hectares of vacant land are available to potential residents.
"A 110 kV power line and access railway tracks to this sector have already been constructed. In addition, by the end of the year, we will commission a 110/10 kV step-down substation, so "Zhurzhevo" will have an additional 20 MW of energy capacity. All this opens up new development prospects for this sector and allows attracting new enterprises," said Yuri Pchelko. Over the next few years, the administration of FEZ "Vitebsk" intends to increase the energy capacity of its main investment site to 100 MW. All infrastructure projects are included in the state investment program for 2021. In addition, work is underway in parallel on the construction of main water supply networks for the second stage of FEZ "Vitebsk" development. This facility is also included in the state investment program with funding in 2022.
The construction of large-scale infrastructure facilities has prompted investors in the anchor project for FEZ "Vitebsk" - OOO "VMG WoodArt" - to intensify investment in the creation of a vertically integrated full-cycle wood processing complex. The total investment volume is estimated at 250 million euros. By the end of 2021, it is planned to complete the construction of a chip production plant, which is preparing for commissioning in the first quarter of 2022. Then, investors will proceed to create particleboard production, and the third stage will involve organizing furniture production.
A total of 54 projects are being implemented in FEZ "Vitebsk" with the participation of businessmen from 14 countries, including Germany, the Czech Republic, Russia, Poland, Lithuania, Great Britain, Israel, Cyprus, and Spain. About 17,000 people work at resident enterprises, which is 3.5% of the employed population in the Vitebsk region's economy. At the same time, this year, FEZ residents attracted about 50% of the total volume of foreign investment in the region. Their share in the region's production volume is almost 11%, and over one-third in goods exports. FEZ "Vitebsk" consists of 16 sectors with a total area of almost 2.8 thousand hectares, of which eight are located in Vitebsk, five in the Orsha district, and one each in Novopolotsk, Postavy, and the Polotsk district.
Today, the IX International Economic Forum "Innovations. Investments. Prospects" concludes its work in Vitebsk. More than 30 business delegations and representatives of the diplomatic corps from 15 countries are participating in its events in a combined online and offline format. This year, the forum's theme is the digital economy as a driver of the region's innovative development. On the second day, representatives of the Vitebsk region and the Chinese province of Shandong will discuss cooperation prospects in the light industry. The work of sections "Green Economy," "Smart Region," and "Clusters - Drivers of Regional Development" is also planned, during which, in particular, the experience of Russian regions in implementing these concepts will be presented.