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Financing, innovation, preferences

What do industrialists in the Far East need, EastRussia found out

Entrepreneurs implementing projects in the industry need special measures of support from the government and partners, according to the business community. In the framework of the All-Russian Congress of Engineers in Komsomolsk-on-Amur, development institutions, entrepreneurs and banks entered into a dialogue on this issue. The result of the discussion is formulated by EastRussia.

Financing, innovation, preferences
Asia Forest LLC (part of the Business Marketing group) implements one of the largest investment projects in the field of wood processing in the Far East: the total value of investments in several production lines - 11,5 billion rubles, the forest fund involved is about 2 billion "cubes" of wood , says company managing director Alexey Koromyslov. Woodworking in the village of Berezovy, the Sunny district of the Khabarovsk Territory, we recall, started back in 2008 year. In December, 2017, in the mode of a video link with the participation of Russian Prime Minister Dmitry Medvedev, Asia Forest launched the third phase of the project - an 90 plant producing thousand tons of pellets and a log sorting line. 

By the decision of the government, adopted in 2016, the Asia Forest project received subsidies from the federal budget for the construction of infrastructure, and is now supported by a number of development institutions - from the Corporation for the Development of the Far East to the Industrial Development Fund of the Khabarovsk Territory. ... “I want to emphasize two points. First, about working with the money that we intend to operate within the framework of work with the Khabarovsk Territory Industry Development Fund and Vnesheconombank. This is state money, and control over it is very serious. Only last month we went through three prosecutors checks and the arrival of the Accounts Chamber, which checked all our expenses, "says Aleksey Koromyslov. 

“The second point is debt repayment,” he continues. “Now we are discussing the first option, which can be used to transfer debt repayment at the time of completion of the project. But interest is offered to us to start extinguishing immediately. We have already done this work with other banks, and the only bank with which we were able to agree and explain that it was wrong - Vnesheconombank was there. They immediately began to charge interest, but we had a moratorium period when we did not pay interest or body of debt - the project has not yet been implemented! If we start right away pay interest it means that we will flush this money out of operating activities, and this is wrong. The project should begin to pay for itself, and for this you need to start implementing it. When it is implemented, please pay interest and a body of debt, "the entrepreneur believes. 

Director General of the Far Eastern Peat Company LLC Alexander Timofeev says that the company began to implement the project in Komsomolsk-on-Amur from a pilot production of fertilizers based on peat. "We were able to enter the market of the Republic of Korea, put 700 tons of products there. It’s difficult or small to judge. If we talk about the stage of promoting a new product to the market of a new country, it’s probably a lot. But an analysis of our export delivery activities showed the following: The level of transportation costs is very high. The peat deposit located in the immediate vicinity of production requires large capital investments, the level of technological equipment of experimental production requires deep modernization. Forgiveness of the taxation scheme, which the company applied, turned out to be absolutely unprofitable for the company. The amount of funds for pricing our products at costs was formed with minimal profitability at real cost. Considering all the problems and the need for further development, we made a radical decision and moved production -Amure to the Lazo district ", - says Alexander Timofeev.

While the global markets in 2014-2016 experienced a downturn, the company took up the modernization and promotion of products in the APR countries. "In the same period, the institutes of development and support of small business and export of the Khabarovsk Territory began to work actively, so we tried to maximize all the support opportunities. The first thing we started with was staff development. With the support of the regional government, we were able to send for six months Internship of two of our specialists to Japan, trained specialists in the program of the Russian Export Center, "- said the entrepreneur.

“The second direction of development is the development of new products with the support of the engineering center of the Far Eastern Innovation Promotion Agency. As a result, we became residents of Skolkovo, which gives us an exemption for 10 years from paying basic taxes, grant support and the ability to attract investors”, - explains the head of the Far Eastern Peat Company. "Only interaction with research organizations, the inclusion of a joint team of scientists allows the company to reach a fundamentally new innovative path of development and continue to receive preferences and support, this is a very important thing, and we have fully felt it," he says. 

The second component of success is participation in international exhibitions, says Alexander Timofeev. "With the support of the regional export center, we registered our company on an international platform in Japan, and as a result, in June last year we already found a new partner in China. We signed a contract and last year we already shipped products for export. In December, it is planned to sign a supply contract 1,5 thousand tons of products. A contract has been agreed and signed with a Korean company for the supply of peat-bacterial sorbent - this is already 8 thousand tons. We are in the stage of coordinating the supply of products to Hokkaido, "the businessman lists export successes.

According to Alexander Timofeev, companies with production volumes of at least 20 thousand tons per year are successful in the world fertilizer market. "Taking into account the results of the preparatory work that we have carried out over the past four years, in the next four years we plan to attract investments of up to 320 million rubles in order to increase the volume of production to 100 thousand tons per year. For this, we are preparing documents for obtaining the status of an investment project of the Khabarovsk Territory ", - he says. As collateral for attracting bank financing, the company will use "not only the company's collateral, which it has created over the past period," but also the guarantee of the Guarantee Fund of the Khabarovsk Territory, and the insurance coverage of the Russian Agency for Insurance of Export Credits and Investments, the entrepreneur sums up. 

In the Khabarovsk Territory, the share of processing industries in the total industry is more than 60%, the share of non-oil non-energy exports reached 60% at the end of 2017, recalls the Minister of International and Interregional Cooperation of the region Vyacheslav Dianov. "This confirms that the industry of the Khabarovsk Territory produces products that are competitive in foreign markets that meet the requirements of foreign consumers, and we are ready to strive to build up export portfolios and export orders," the official said. 

"We have already conducted a number of business missions, organizing our exhibition compositions, organizing the negotiation process in a number of international exhibitions and presentations. According to the results of participation, there are certain agreements on certain types of products. In June, we held large-scale and, I think, successful International Business Days an event where we in our territory united an exhibition of manufacturers and potential importers so that they could familiarize themselves with our products and business conditions on the spot. iyatii attended 10 countries, on the basis of signed documents 17 -. agreements, memorandums Organization we take on, the Expo site and our events free of charge ", - the minister said. 

By the end of the year, the region will host a discussion of support for export-oriented business projects within the framework of the next Far Eastern Forum of Entrepreneurs in Khabarovsk, in mid-October a business mission of the Khabarovsk Territory is planned to one of the provinces of the PRC with a visit to a fair in Hong Kong, and on December 6-7 in Khabarovsk the sixth all-Russian international conference "Foreign economic activity as a factor in the effective development of small and medium-sized enterprises in the constituent entities of the Russian Federation" will be held in combination with the Russian-Japanese dialogue on the development of cooperation between the businesses of the two countries. "We are trying to establish real work to support business, to promote our products abroad. Here we have another effective instrument - the Export Council under the Governor of the Khabarovsk Territory. The Governor conducts it once a quarter. We have actually made a tool where a direct dialogue is established, we have already held three meetings - the reviews are good, "Vyacheslav Dianov concludes. 
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