Engineering opportunities

An Expert's View about Metals, Metalworking, Glass and Minerals in Russia

Last updated: 19 Jul 2011

President Medvedev has identified five top priority sectors to be under his direct control: (1) energy-efficiency and resource saving (including development of new fuel types), (2) nuclear technologies, (3) pharmaceuticals and medical industry, (4) up-to-date IT and software, (5) space and telecommunications.

Sector briefing Engineering opportunities in Russia Why Russia? RF Government has set clear strategic objectives to transfer from raw material-based economy to the one based on innovation, modernisation and technological development. President Medvedev has identified five top priority sectors to be under his direct control: (1) energy-efficiency and resource saving (including development of new fuel types), (2) nuclear technologies, (3) pharmaceuticals and medical industry, (4) up-to-date IT and software, (5) space and telecommunications. Although the engineering sector is not in the above top priority sectors, the Government ?Annual market demand for realises that none of the above can be developed without up-to-date manufacturing new metal-machining technologies. equipment is over 50,000 units or $1 to $1.5 billion. The sector is in high need of up-to-date manufacturing equipment. 70% of the existing However, the Russian capital assets are outdated. machine tool manufacturers meet less than 1% of the Find general information on Bangladeshi m internal need? arket conditions on UKTI?s website. The Doing Business Guide for Russia gives an overview of Bangldesh?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Engineering opportunities in Russia design and production to component Opportunities inspection and technical support Currently there is no overall RF Government's II. Greenfield construction of 268 MW power policy to develop the entire manufacturing station is to start in Yamal-Nenets industry. The State provided targeted support Autonomous District. Total investment: to specific sectors, for example, to Aerospace, $606 million. Project Owner: Corporation Rail or Automotive. In addition, every industrial ?Industrial Urals - The Polar Urals? region of Russia designs and implements programmes and projects to support III. Greenfield construction of quartz development of the local engineering sector. production plant to produce 10 thousand tons of quartz products per year to start in RF Government is keen to integrate industries Khanty-Mansi Autonomous District. Total encouraging industrial asset 'consolidation' into investment: $140 million. Project Owners: large industrial corporations or holdings. Corporation ?Industrial Urals - The Polar Urals?, Rosnano, Government of Khanty- Examples of equipment gap: Annual market Mansi demand for new metal-machining equipment is over 50,000 units or $1 to $1.5 billion, but IV. Greenfield construction of light emitting Russian machine tool manufacturers meet less diodes production has just started in the than 1% of the internal need. Current domestic Tomsk Region. Total investment: $232 manufacture of new machine tools is lagging million. Project Owner: Rostechnologii behind the market demand and cannot ensure a qualitative and quantitative break-through. V. Greenfield construction of magnesium Production of new generation high efficiency production plant is to start in the and precision machine tools is not sufficed Sverdlovsk Region (town of Asbest) to either. So, the market has to rely on the produce 70 thousand tons of magnesium imported equipment. This is true for other and 90 thousand tons of silica per year. engineering sub-sectors. For example, Russian Investment: $428 million. Project Owners: manufacturers of power engineering equipment Rosnano, VEB (Vnesheconombank), meet 30% of the internal demand. By 2015, Ministry of Metallurgy (MinMet), Uralasbest the Russian railway equipment market will be company, Government of the Sverdlovsk in short of over 200,000 units of rolling stock. Region) Programmes, projects, corporations and VI. Brownfield construction of 91.2 MW Power- holdings look for new state-of-the-art Generating Unit will start in Sakhalin manufacturing equipment and Region in 2011. Total investment: $86 technologies in order to improve their million. Project Owner: RAO ES Vostok production base. If you have any questions about the The process opens up opportunities for UK opportunities listed above, contact the UKTI suppliers of manufacturing equipment and Renewable Energy contacts named in this technologies. report. Business opportunities aimed specifically at UK companies are added daily to The following are specific investment projects UKTI?s website. These leads are sourced by our in Russian engineering sector to start in 2011: staff overseas in British Embassies, High Commissions and Consulates, across all sectors I. Prototyping Centre in Novosibirsk - The and in over 100 markets. Novosibirsk Region in West Siberia will be given RUR255 million (£5.6 million) to You can be alerted to business opportunities on develop a prototyping centre that will a regular basis by registering on the UKTI provide technical support to the industrial website. Find out more on UKTI?s business estate in Akademgorodok - an education opportunities service on the UKTI website. and research centre located 20 km (12 miles) south of the city centre. The NOTE: See separate reports on Automotive, prototyping centre will be an engineering Rail, Aerospace, etc prepared by Russian company to design an entire pre- Advanced Engineering Team production system from computer-aided UK Trade & Investment Sector briefing: Engineering opportunities in Russia Major events and activities UKTI contacts UKTI Activities: UKTI Russia, Engineering Team: Sustainable Manufacturing Opportunities, OLGA MAKARCHUK Inward Mission from Russia Team Leader Contact: Galina Movchan, UKTI Russia British Consulate General, St-Petersburg: Email: Tel: 007 (812) 320 3200/23 Time: February 2012 Email: UK Advanced Engineering Days in Russia Contact: Galina Movchan, UKTI Russia Email: GALINA MOVCHAN Time: March 2012 Senior Trade & Investment Adviser British Consulate General, Ekaterinburg Events: Tel: 007 (343) 253 5601; 253 5606 Email: METALLOOBRABOTKA 2011, Moscow ?ExpoCentre? ( Contact: Galina Movchan, UKTI Russia Email: ALEXANDER PETROV Time: 23 to 27 May 2011 Senior Trade and Investment Adviser British Consulate General, St-Petersburg STANKOSTROYENIYE 2011 Tel: 007 (812) 320 3228 (STANKOEXPO-2011), Moscow Email: 'Crocus-Expo' ( Time: 18-21 October 2011 MASHEX-2011, Moscow SVETLANA BONDARKO ?Crocus Expo?, ( Senior Trade & Investment Adviser Time: 25-28 October 2010 British Embassy, Moscow Tel: 007 (495) 956 7452 METALLOOBRABOTKA 2012, Moscow Email: ?ExpoCentre? ( Contact: Galina Movchan, UKTI Russia Email: Time: 28 May to 1 June 2012 ANASTASIA BADINA Trade & Investment Adviser Find full details of all events in this British Embassy, Moscow country and sector on the UKTI website. Tel: 007 (495) 956 7389 New export events are added daily to the site Email: and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) ELENA PASHINA provides grant support for eligible Small & Trade & Investment Adviser Medium Sized Enterprises (SME's) to attend British Embassy, Moscow trade shows overseas. Find out more about Tel: 007 (495) 956 7229 UKTI support for attendance at overseas Email: events UK Trade & Investment Sector briefing: Engineering opportunities in Russia Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Russian market business in the Russian market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Russia, with its wide local knowledge and service which assists British-based companies experience, can provide a range of services to wishing to enter or expand their business in British-based companies wishing to grow their overseas markets. business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Russian market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Engineering opportunities in Russia
Posted: 19 July 2011, last updated 19 July 2011

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