Magnitogorsk Iron & Steel Works (MMK) has started to co-finance projects implemented by the residents of MMK-Industrial Park in order to support and enhance business development in Magnitogorsk.
MMK’s co-financing is provided on a competitive basis for the creation of new, or the expansion of existing, production. The share of co-financing amounts for up to 30% of the project amount but does not exceed 15 million rubles.
Pavel Shilyaev, CEO of MMK, commented: “Co-financing is an important incentive and a sign of trust for companies that have decided to organize or expand industrial production in the MMK-Industrial Park. Residents of the Industrial Park already use the regional support tools, there is a discounted rental price of only 66 rubles per square meter per month, which is twice as low as the average rental price in Magnitogorsk.”
Teplo Pribor Express Analysis, a resident of the Industrial Park, launched production of disposable sensors for the analysis of temperature and chemical composition of liquid steel at the site in March 2017. It was the first enterprise to use this financial instrument for the expansion and localization of its production. This product is now being bought by all the largest metallurgical enterprises in Russia.
The site of the MMK-Industrial Park is a ready-made property complex with a total area of 65 hectares, with all the engineering infrastructure, a developed railway network – all the conditions required for a quick start of almost any new production are created here. MMK-Industrial Park has been accredited by the Ministry of Industry and Trade, which enables investors to apply a tax and benefit system – zeroing the property tax rate and a 3.5% reduction in the regional component of the income tax rate. To date, there are 26 residents on the site. (MMK/Ukrainian metal)