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Meeting/Event name – Month date, 2011, Type of event, Country – Arial regular size 8. ROCKWOOL – RUSSIA factory in SEZ ‘ALABUGA’ A Case Study September 17th, 2012. Rockwool International. World No1 manufacturer of stone wool insulation Quoted on the Danish stock exchange

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Meeting/Event name – Month date, 2011, Type of event, Country – Arial regular size 8

ROCKWOOL – RUSSIA factory in SEZ ‘ALABUGA’

A Case Study

September 17th, 2012


Rockwool International Country – Arial regular size 8

  • World No1 manufacturer of stone wool insulation

  • Quoted on the Danish stock exchange

  • Business is Energy Saving, also Fire & Acoustic protection

  • 27 production lines, and businesses in over 40 countries

  • Purchased 1st factory in Russia in 1999

  • Now 4 factories and 7 sales offices in Russia


Rockwool factories approximately 1,000km apart Country – Arial regular size 8

MURMANSK

St.Petersburg

850

N Novgorod

1030

Kazan

Kharkov

Odessa

870

Dnepropetrovsk

Yekaterinbourg

Samara

Rostov-na-Dony

Ufa

Cheliabinsk

Volgograd

Omsk

Novosibirsk

Astana

Cities with population more than 1 000 000


Rockwool factory Alabuga SEZ Country – Arial regular size 8

  • $ 150,000,000 investment

  • 48 Ha(including environmental area)

  • Highest output stone wool line in the world

  • Commissioned Q1 2012


ROCKWOOL factory in SEZ ‘ Alabuga’ Country – Arial regular size 8


ROCKWOOL factory in SEZ ‘ Alabuga’ Country – Arial regular size 8


One of the biggest challenges of investing in Russia is to convince your Head office Supervisory Board


Nice Tax incentives in Alabuga SEZ convince your Head office Supervisory Board

  • No Customs duties on imported machinery when constructing the factory

  • Profit tax reduction from 15.5% to 2% for the first 5 years

  • Profit tax reduction from 15.5% to 7% for the 2nd 5 years

  • tax concession on property tax during 10 years

  • (0% instead of usual 2.2% of net assets)


1. convince your Head office Supervisory BoardSupport from Business orientated Authorities

List of 22 criteria when we

Build or Buy a factory


Why are supportive business like authorities so important ? convince your Head office Supervisory Board

We are a “white” foreign company with strong Scandinavian values

It is inevitable to encounter problemsduring such a major project.


Why we chose Tatarstan ? convince your Head office Supervisory Board

1/ We have been importing into Russia since the 1970s and already knew the landscape

2/ Spent time meeting short listed Authorities

3/ Personally discussed with General Directors of 9 companies already doing business in Tatarstan


Meetings with President Minnikhanov convince your Head office Supervisory Board

29.11.2011


Quote from convince your Head office Supervisory Boardsenior Customs Authorities in Alabuga,

”Its our shared goal to commission your factory on time”


Rockwool factory Alabuga SEZ convince your Head office Supervisory Board

  • Whole project delivered on budget

  • …… and 2.5 months ahead of schedule.

  • Run 24 / 7 since start up,

  • Performing ahead of the planned learning curve.


Official Opening event - 04.04.2012 convince your Head office Supervisory Board


Support from Business orientated Authorities convince your Head office Supervisory Board

Proximity to customers and markets

Large site to allow expansion (min 20 Ha.)

Reasonable priceof land

Stable soil conditions (for building foundations)

No pollution or contamination

Railway connection

Easy access to Public roads

Possible to erecthigh chimney

Airport within reasonable distance

No immediate residential neighbours

22 criteria when we build/buy a factory


22 criteria when we build/buy a factory convince your Head office Supervisory Board

Suitability of any existing buildings

Electrical power supply 7 MVA

Natural Gas 1,000 Nm3/h

Sewerage for 250 employees

Availability of raw materials

Tax concessions

All necessary industrial permissions and approvals

Clear ownership of land

Suitable hotel accommodation for engineers building the factory

Local technical universities (availability of skilled staff)

Good availability of local blue collar labour force


…… finally the Dream becomes Reality convince your Head office Supervisory Board


Meeting/Event name – Month date, 2011, Type of event, Country – Arial regular size 8

Questions?


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