Ground broken for Kola Industrial Park May 21, 2014

Tellus-Group and Renaissance Construction launch multimillion-dollar industrial project.

May 21, 2014 Tellus-Group together with Renaissance Construction broke the ground of Kola Industrial Park. The ceremony was held with the support of the Leningrad region, Turkish-Russian Business Council and Chamber of Industry of Ankara and welcomed numerous guests representing both commercial and non-commercial organization and diplomatic missions.

Elena Smotrova, chairman of the board of directors of Tellus-Group, and Erman Ilicak, President of Renaissance Holding, hosted the ceremony that was attended by Alexander Drozdenko, the governor of the Leningrad region, Sergey Belyakov, vice-minister of economic development of Russian Federation, Irada Golick, director of Agency of Economic Development of the Leningrad region and Maxim Pazdnikov, member of the board of Association of Industrial Parks.

Kola Industrial Park will be constructed on the 128,7 ha plot located in the Vsevolozhskiy District of the Leningrad Region next to the St.Petersburg Ring Road and Kola Highway.

The total investment in the project is $ 450 million, including $ 80 million for engineering and transportation areas. At the same time, he realized without budgetary funds, but after the release is located in the industrial park resident enterprises design capacity, the total revenues of the budgets of all levels reach 2.4 billion rubles, including 1.4 billion rubles to the budget of the Leningrad Region, - says the chairman of the board of directors Tellus-Group Elena Smotrova. - In addition, the project will create in the Leningrad region over 5000 new jobs. Estimated duration of the project will be eight years, of which three-year period should provide the necessary facilities and site facilities engineering and transport infrastructure.

Project’s total investment accounts for US$ 450 million, including US$ 80 million for engineering and transportation facilitation. The project is being realized without budgetary funds; rather after the project is launched it will contribute US$ 68 million to all levels of budget including US$ 40 million to the budget of the Leningrad region, says Elena Smotrova, Chairman of the Board of Directors of The Tellus-Group. Moreover, the development of this project will create more than 5 000 workplaces. The project will take approximately eight years, during three of which the area will be connected to all utilities and transport and roads will be facilitated.

According to Mr. Ilicak, there are active undergoing negotiations with 16 Turkish anchor residents. For most of them, places their manufacture premises will mean entrance to the Russian market. Mr. Ilicak says there are numerous interested companies, however they all wait till engineering infrastructure is organized.

Alexander Drozdenko, the head region confirmed the bill regarding the support of the industrial parks from the government will be signed on June, 28. The bill means certain considerable preferences for the investors including allowances. Mr. Drozdenko believes that Kola Industrial Park will be one of the first industrial parks enjoying the tax allowances. The importance of the geographical location of the project is that there is a large residential area to be built in the very proximity to the Park. This will contribute to the dynamic and balanced development of the region.

The project is considered to be of the great significance as it is being implemented within the intergovernmental Russian-Turkish cooperation framework and according to the strategy of social and economic development of the North-West Federal District. The strategy was approved by the Decree of the Government of the Russian Federation Government’s Decree No. 2074-r of November 18, 2011 for the period up to 2020.

We consider the groundbreaking ceremony to be held just before the Economic Forum to be symbolic for us, says Elena Smotrova. The point is that last year during the SPEF-2013 the memorandum of cooperation was signed by us, Alexander Drozdenko, the governor of the Leningrad region and Erman Ilicak, president of Renaissance Holding. As a result, within less that one year we managed to give a start to this project. This demonstrates the intentions and the very help of the Leningrad region to investors.

The park’s territory is divided into several functional zones: industrial (48 ha), warehouses (31 ha), multifunctional (24 ha) etc. Currently all necessary research and design works are completed for high priority sites. The construction of the road to connect the park with Kola Highway M-18 and intrasite engineering networks are scheduled for 2014.