Transcript presentacia_eng

The advantage of OJSC SEZ “Lipetsk” for foreign investors
Report of LLC “YOKOHAMA R.P.Z.”
Production of Automobile Tires “Yokohama”
November 6, 2013
IX International Investment Conference
“Lipetsk Region: Development through Investment”
LLC ’YOKOHAMA R.P.Z.”
General Director Shigeru NAKANO
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Fact of the plant “Yokohama”
Company name : LLC YOKOHAMA R.P.Z.
[ ООО «ЙОКОХАМА Р.П.З.» ]
Shareholders : Yokohama Rubber Co., Ltd. 80％、ITOCHU Corporation 20％
Products : Passenger Automobile Tire
Production : ann.1.4 million units (Phase 1)
Land : 29ha (including additional land plot
for extension).
Construction : Started in March, 2010
Commercial production : in 2011
Employees : ca. 580 persons (Phase 1)
Investment : ca. 6,5 billion Rubles （Phase 1 / ca. 149 million Euro）
Market : Russia (Replacement) 80-90% / Export 10-20% (Plan)
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Investigation on construction site
• Started to study the investigation on the construction site in
Russia at the beginning of 2008
• On investigating, excluded the site at the city of Moscow,
Moscow region, the city of St. Petersburg, and Leningrad
region as main foreign investors have already built their plants.
• Taking into account that the major tire market exists around
the city of Moscow and the western side of Russia and so,
taking into account the distance to the market, we started to
visit and investigate 21 candidate sites in 6 regions around
Moscow area from July, 2008.
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Candidate construction sites we visited
One candidate site - Just a field without any infrastructure
Other candidate sites – same as above
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Investigation on SEZ
• On investigation on the construction site, we recognized there were
2 SEZs of industrial and production type
• 2 Federal SEZs of industrial and production type are located at
– Lipetsk region, Gryazi district
– Republic of Tatarstan, Elabuga
• We decided to visit SEZ in Lipetsk region in September, 2009.
– We compared 2 SEZs and got more interest in SEZ in Lipetsk
region because of the distance to the market.
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
First Visit to SEZ “Lipetsk” September, 2008）
Administration Building
Road
Cable Bridge for Electricity
Glass factory (Russian)
Leveled Land
Heat exchangers factory
(Italian)
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Study of lead time and our case
Study of Lead Time
Candidate
Site
Lead Time
(max.)
Preparation
Apply for
Installation of
for Industrial →
→
→
Infrastructure Infrastructure
Land
I
Case A
48 months
3-6 months
3-6 months
6-12 months
6 - 12 months
12 months
II
Case B
42 months
Done
3-6 months
6-12 months
6 - 12 months
12 months
III
Private
Technopark
36 months
Done
Done
6-12 months
6 - 12 months
12 months
IV
SEZ
24 months
Done
Done
Done
6 - 12 months
12 months
34 months
Done
Done
Done
15 months (actual)
19 months
Apply for
Permits
→
Start
Complete
→
Construction Construction
Our case
SEZ
Lipetsk
Dec. '08 ～
Mar. '10～
Sept. '11
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Comparison between SEZ “Lipetsk” and other sites
SEZ in Lipetsk
◎
Private Technopark A
△
Private Technopark B
△
Infrastructure
Installed to the boundary of Planned, but takes 1 year to Planned, but takes 1 year to
the territory of residents
complete
complete
○
△
△
Years to complete
construction
2 years
3 years
3 years
◎
×
×
Electricity access charge
Not required
100 million ruble
83 million ruble
◎
×
×
Land cost ( if you purchase
after the construction )
203 thousand ruble/20 ha
400 million ruble/20ha
167 million ruble/20ha
◎
△
△
Import Duty on Equipments
Free
Investment in Kind
Investment in Kind
◎
○
○
VAT on Equipments
Free
Returned after sales
Returned after sales
○
×
×
Import Duty and VAT on raw
To be paid on selling
materials
products
○
○
○
Corporate Tax
Exempt ion for 5 years
Exempt ion for 5 years
Exempt ion for 5 years
○
△
△
Labor Force
500,000 people/Lipetsk
120,000 around the area
90,000 around the area
△
○
△
Distance to Moscow
450 km
100 km
300 km
○
△
×
Living standard for foreigner
Capital of Lipetsk region
Very small town
Small town
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Conclusion as of today
• To select SEZ “Lipetsk” as our construction site in
Russia was the right decision so far because:
1. You can complete construction of your plant shorter than at other
sites.
2. You can enjoy the privileges provided to the residents of SEZ
3. You can expect the full support of the governmental organizations
such as Ministry of Economic Development, Administration of
Lipetsk region, OJSC “SEZ”, OJSC SEZ “Lipetsk”,etc.
• The support from these organizations helps us to solve any issues
and problems and we really appreciate it a lot.
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Visit of Mr. Nagumo, President of Yokohama Rubber Co.（Nov. 25, 2008）
At Lipetsk Airport
At the site
Together with the
Governor, Mr. Korolev
Meeting with Lipetsk Administration members
At the administration building of SEZ Lipetsk
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Ground Breaking Ceremony
Speech
Ground Break
First Stone
Kagami-Biraki ( Breaking of Sake Barrel )
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“BluEarth” – new eco-tire concept by Yokohama
What is “BluEarth”?
“BluEarth” is an eco-tire concept and a new
product line introduced by Yokohama in 2011.
It is a concept of environmentally-friendly,
human-friendly and socially-friendly tires.
Bluearth tires realize the top fuel-efficient
performance by improving the vehicle fuelsavings and have enhanced grip
performance on the wet road due to their
specific structure and components (nanoblend compound, orange oil, etc.).
What is “BluEarth”?
For environment: Achieving superior fuel
saving to reduce CO2 emissions.
For humanity: Solid safety and superior
comfort
For society: Lowered external car noise level
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.
Thank you !
Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved.