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Turnkey Industry Solutions

Construction Materials

Opportunities

  • Having its foothold in the industry, the Pskov Region gains experience, new vistas and commercial networks.

  • Access to the local and neighboring markets. Large-scale residential development. Tourism promotion increases demand for construction materials for hotels, shopping malls, entertainment and health centers.

  • Mineral resources in the Pskov region. The region has 20 clay deposits with total reserves estimated at 31.9 million cubic meters as well as the quartz sand deposit with reserves estimated at 1.051 million tons.

  • Human resources. About 10% of university graduates major in construction and architecture.

  • Transport connections with major centers of demand, such as the Leningrad Region and St. Petersburg.

Development opportunities in the region

  • Booming construction boosts the industry growth in the Pskov Region.

  • Demand-generating local market.

  • 28 clay deposits in the region (the volume of industrial clay is about 44.9 million m3), only few of them are commercially used at the moment.

  • Centers of demand will increase their demand once the industry starts growing

  • Strong local and regional demand for construction materials

  • Availability of skilled workforce for deployment of innovations and product line management

Auto components

Opportunities

  • The region provides more affordable land parcels for manufacturing in comparison with neighboring regions

  • Skilled workforce in Pskov is more affordable than in neighboring regions.

  • It’s the only industrial SEZ nearby, thus providing promising opportunities for investors. All other SEZs that specialize in manufacturing of auto components are located near Moscow or other automotive clusters.

  • Access to the EU market, while the manufacturing is based Russia.

Growth potential

  • Currently, the Pskov region produces lifting and handling equipment, car electric motors, relays, insulated wires and cables, galvanic cells and batteries, etc.

  • The close proximity to such manufacturers as Volkswagen, Toyota, Ford, Hyundai, etc. located in the traditional centers of St. Petersburg and Moscow should create opportunities for supply of raw materials and components.

  • The proximity to European countries facilitates sustainable foreign trade and raw materials supply.

Polymers

This SEZ specialization is associated with perspective polymer cluster (a cluster of polymer processors) in Moglino SEZ. The anchor tenant of the cluster is Titan-Polymer Plant LLC (Pskov), developing industrial complex for production of PETF pellets (polyethylene terephthalate pellets) and BOPET films (biaxally oriented polyethylene terephthalate film).

The cluster will contribute to the development of related industries of radio electronics, fibers and threads, nonwovens, flexible packaging, printed products, plastic products. It will involve small business into cooperation

Utility equipment

Opportunities

  • Access to established demand markets in the Pskov and neighboring regions.

  • Local fuel (e.g. peat and wood chips) may stimulate demand growth. The Pskov region produces over 44 million cubic meters of timber per year, including 1.4 million cubic meters of coniferous trees. In addition, there are 329 deposits in the Pskov region with reserves of 500 million tons of peat with 40% relative humidity.

  • Lower production costs compared to other regions may attract large domestic companies to invest in Pskov.

  • The industry gives the Pskov region the following opportunities:
    • The current industry presence in the Pskov region can be expanded under regional industry programs.
    • High concentration in other regions of Russia.
    • Future equipment renewal (about 80% of utility equipment is worn out) will lead to high demand on utility equipment in the Pskov and neighboring regions

Development opportunities in the region

  • Currently, the Pskov region produces industrial and central heating boilers, heat generators, polyurethane pipes, etc.

  • The proximity of the region to the main markets of the European Union and the traditional centers of Moscow and St. Petersburg is favorable for raw materials import and export of finished products.

Agricultural equipment

Opportunities

  • Pskov offers lower cost drivers - land and labor costs - compared to neighboring regions for manufacturing base.

  • Target customers are numerous agricultural farms in the region.

  • Good logistics infrastructure facilitates exports to such demand centers as Poland and Ukraine.

Development opportunities in the region

  • Substantial agriculture and food industry in Pskov has traditionally attracted more than 10% of the total investment in the region. Manufactures of agricultural equipment may rely on close cooperation with agriculture and food industry in Pskov and prosper due to strategic collaboration.

  • There is a significant opportunity to replace equipment in Russia, as more than 70% of agricultural equipment is worn out and 90% is outdated.

  • Foreign imports currently account for a significant share of total Russian sales. Therefore, there is significant potential for import substitution.

  • There is a growing incentive to strengthen the capacity of local manufactures and attract foreign companies to launch manufacturing in Russia.

  • Nowadays the Pskov region produces electric motors, relays, insulated wires and cables, galvanic cells and batteries, etc.

  • Close proximity to the main original manufacturers as JohnDeere , AGCO Machinery , etc., located in the traditional centers of St. Petersburg and Moscow, should provide opportunities for components supply. The proximity to European countries favors to external trade and raw materials import.

Electrical and household equipment

Industry development opportunities in the region

  • Currently, the Pskov Region produces electric motors, power generation equipment, transformers, insulated wires, etc.

  • Proximity to major equipment manufacturers as Schneider , Samsung , Hewlett-Packard, etc., located in the traditional centers of St. Petersburg and Moscow, stimulates bilateral supplies.

  • Proximity to European countries ensures sustainable growth of foreign economic activity in the region.

  • About 5% of students in professional educational institutions major in power engineering, electrical engineering, metallurgy, mechanical engineering and material processing.

  • There are two institutions of secondary vocational education in the structure of Pskov State University (Pskov Polytechnic Institute and Industrial College)

Railway equipment

Opportunities

  • Railway infrastructure near Moglino.

  • Lower cost and technically qualified personnel in Pskov.

Development opportunities in the region

  • Currently, the Pskov region produces heavy and powerful electric motors, high voltage wires and cables, etc.

  • The proximity to main EU markets and to traditional centers of St. Petersburg and Moscow drives import of raw materials and export of finished products. Lower manufacturing costs in SEZ may provide supplies to existing manufacturers as Metrovagonmash, Kirovsky Zavod etc.

  • Production of industrial hardwood and industrial softwood. Opportunity to supply timber for the needs of the railway.

Logistics

Opportunities

  • Pskov offers access to a well-developed road network from both sites and to the railway network from Moglino.

  • Investments in the development of logistics terminals and customs terminal in the Pskov region.

  • The Pskov region has significant industry experience. More than 5% of Russian imports and more than 10% of Russian exports pass through the Pskov region.

  • Pskov has the ability to make the most of its strategic location and develop logistics to serve as a gateway to the Russian and European markets.

  • New manufacturing companies established in SEZ will require logistics services for transportation, warehousing and packaging needs, especially in such industries as food processing, pharmaceuticals and medical equipment.

  • Beyond SEZ tenants needs, there are already several opportunities in the logistics sector that are the result of the existing trade flows passing through the Pskov region.

Benefits

  • Multimodal transport accessibility.

  • Less congested customs posts.

  • Excellent accessibility to domestic and foreign markets.

  • Insufficient number of well-equipped logistics enterprises between St. Petersburg and Moscow.


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