Moscow Company builds new car part factory

A company from Moscow has finished construction of a new plant producing car parts for a Moscow manufacturing facility and got a permission to put the plant into operation. The building is located in Zapadnoye Biryulyovo District.

“The land for the manufacturing complex covering 36,600 square meters was allocated with no bidding as part of a big investment project. The funding has exceeded RUB 2.9 billion. With its production capacity and engineering competence, the company will be able to produce 150 types of molded parts for more than 250,000 cars per year. This will help make more parts for foreign cars in Russia. The project will help the city keep this modern plant with 330 jobs,” said Vladimir Yefimov, Deputy Moscow Mayor for Economic Policy and Property and Land Relations.

The company is one of the key manufacturers for the joint-stock company AvtoVAZ JSC and can become an important partner for Moskvich factory.

“We supervised the project during its entire lifecycle from choosing the plot to commissioning the facility. In 2019, the Moscow Government granted Alfa Automotive Technologies the status of priority investment project, which gives substantial tax benefits. For example, such projects have a 25 per cent less regional tax burden: income tax is only 13.5 per cent instead of 17 per cent, property tax is reduced to zero, and the rent rate is less than 1 per cent of the accrual,” said Vladislav Ovchinsky, Head of the Moscow Department of Investment and Industrial Policy.

Supported by the Government of Moscow, the company has finished a comprehensive project on relocation of production facilities from AMO ZIL and their upgrade.

Programs to create or upgrade manufacturing facilities, complexes, technoparks, and industrial parks, as well as construct educational, cultural, art, and public service institutions become priority investment projects. Besides, projects funded by investors and implemented under agreements on facility construction or reconstruction or under public and private partnership agreements can also become priority investment projects.

The status is granted for 10 years and requires annual confirmation. However, in late March, Sergei Sobyanin approved an anti-crisis business support package that among other things provides for automatic extension of all special statuses in 2022. Therefore, investors can keep their benefits without the obligatory confirmation.

To apply for the priority investment project status, visit Moscow Investment Portal.