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Lipetsk, Central Russia

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Lipetsk, Central Russia

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  1. International Conference THE INTERREGIONAL PARTNERSHIP IN THE DEVELOPMENT OF NEIGHBOURING COUNTRIES’ POLICY: THE MEDITERRANEAN AND BALKAN AREASItalian Presidency Semester of European Union Ancona, 17th and 18th October 2003Marches Region and Lipetsk Region Territorial Partnership Giovanni Sergi,Marches Polytechnical University,Italy Lipetsk, Central Russia

  2. Economic and Territorial Features of Lipetsk's Area, Oblast, Central Russia Lipetsk's Area is 24,100 sqkm wide, whereas the Marches region is just 9,692 sqkm and the Piedmont region is just 25,399 sqkm. The town dwellers account for 789,000 in urban areas and 432,000 in rural areas. Lipetsk is a town with 519,000 residents and is 450 km south-east away from Moscow. Its railway lines are 746 km long. Its total road network is 8,000 km long. The airport in Lipetsk allows for planes of up to 60 tons to start off. Nowadays it has not been qualified for international flights yet.

  3. Iron and steel industry and engineering industry in Lipetsk's area The first foundry built in Lipetsk's area dates back to 1643. In 1931 action plans were started to build a "Kombinat", a large steelwork. Now called NLMK, it employs 40.000 workers. It is one of the largest steelworks in the Russian Federation. Yet it is a private property.

  4. Lipetsk City This is the administrative, industrial and cultural township of the region. Located on a bank of the Voronezh river, it has 519,000 residents. Three universities and the main town facilities are in the city centre. The NLMK steelwork is on the outskirts of the city.

  5. The Novolipetsk Metallurgical Plant NLMK, Russia’s third largest steel mill. Headquarters and manufacturing site in Lipetsk

  6. Social and Economic Data of Lipetsk's Area This is one of the 5 most socially and economically prosperous areas in Russian Federation. In 2001 the GDP of this area exceeded 56 billion rouble (+3% compared to 2000). 2001's production accounted for 17.5 billion rouble: 9.5 billion to the agricultural and food industry and 8 to non-agricultural and food industry. The manufacturing industry accounts for 56% of the regional GDP. Its agricultural surface is 3.6 billion acres, 65% of the whole area. Mining raw material resources for the manufacturing industry are: calc, dolomite, sand, clay, and natural cement. The unemployment rate is one of the lowest throughout Russian Federation.

  7. Lipetsk's Area: External Trade • The external trade turnover in 2001 was 1.15 billion USD with Europe, Asia, Africa and America. • The export in 2001 was 924 million USD worth. Ferrous metals, tractors, fridges, precision instruments, mineral fertilizers were exported to the USA, Turkey and Malaysia.. • The import of machinery and equipment from Germany, Italy, Netherlands and Ukraine in 2001 was 40% higher than in 2000. • Foreign investments in Lipetsk's area: • 1998, 33.3 million USD • 1999, 14.4 million USD • 2000, 120.8 million USD • 2001, 81.3 million USD

  8. Lipetsk's Area: External Trade Trends

  9. Foreign investment stream trend in Lipetsk's area

  10. Joint signatures for building of Stinol fridge-manufacturing site in Lipesk , 1989 Merloni Elettrodomestici S.p.a. took over Stinol, a factory producing fridges, in 2000 In 2000 Merloni Elettrodomestici purchased 100% of Stinol at 119.3 million USD, the biggest fridge manufacturer of Russia. Along with three local trademarks, Ariston and Indesit, it currently employs 21,000 workers and produces 12 million items. Its turnover accounts for 3 billion EURO and covers 14% of the European Market. The Russian Stinol company was founded in 1990 in Lipetzk. In 2000 its 100,000 sqm – wide factory produced approximately 700,000 items per year and its turnover was 110 million USD. Stinol had been completely run by Novolipetsk Metallurgical Complex NLMK, designed by Merloni Progetti in 1989, built from 1990 to 1991 and started up in 1993.

  11. Organization of Stinol's Fridge-Manufacturing Site in Lipesk owned by Merloni In 2003 its output level reached 1.3 million items per year even if its productivity per worker was lower than the one of the Italian factories. The factory currently employs 4,900 workers consisting of young people on the average. 47% of its personnel consists of women.

  12. Lipetsk's New Washing Machine Factory owned by Merloni In May 2003 Merloni Elettrodomestici started building a new factory to produce washing machines in Lipetsk. Merloni's total investment is one billion rouble, little more than 30 million EURO, 50% of which will be allocated to the building and the remaining 50% to the equipment. The new factory is due to open up in spring 2004.

  13. Marches Region and Lipetsk's Territorial Partnership aiming at setting up an Engineering District in Lipetsk Merloni has worked for years on the action plan aiming at setting up a manufacturing industry district in Lipetsk's area for Russian made items to be used at its Stinol's production site premises and by Russian companies or foreign investors, in particular Italian ones if possible. This plan, developed in 2002 and 2003, does not only aim at setting up a 40-acre wide industrial area, but is designed to modernize already existing old plants, create new companies able to supply Stinol with the components required by its production process. Lipestk is one of the five most economically prosperous areas in the Russian Federation thanks to 180 enterprises working in the domain of metallurgy, engineering, electronics, chemistry and buildings.

  14. The policy of the Marches Region aims at supporting and leading internationalisation processes in the industrial districts in the Marches (a) • The Marches Region has chosen to support Merloni's initiative promoting an internationalisation project of the local engineering district. • In July 2002 an action plan for a partnership between Lipetsk's Region and the Marches Region was signed in Lipetsk. This plan promotes a three-year long renewable collaboration agreement for the following industries: • Engineering and electromechanical industries, agricultural machinery and equipment, furnishing industry, wood and plastic material processing, textile industry and clothing trade • Integrated logistics • Agricultural production and food processing of crops • Tourism, farm tourism, sports facilities and leisure complexes • A collaboration in the domain of higher education, research, culture and art

  15. The policy of the Marches Region aims at supporting and leading internationalisation processes in the industrial districts in the Marches (b) • In September 2002 the first meeting of the Marches Regions and Lipetsk's operational team was held in Ancona. The following points were on the agenda: • Collaboration between two universities: Marche Polytechnical University and Technical University of Lipetsk • Economic relationships between both areas – particular attention was paid to the opportunity of exporting the engineering know-how of the Marches district to the Lipetsk's area • Development of economic relationships in several domains, such as agricultural and food industry, textile industry, clothing trade etc. • Building a "Casa Marche" in Lipetsk • Adding a training initiative for personnel of the companies in the Marches willing to invest in Lipetsk's area to the action plan agreement between the Marches Region and Ministry of Industrial Activities. The same opportunity will be also given to Russian companies in Lipetsk's area • Setting-up a Fabriano's Meccano s.p.a. centre providing Marches companies investing in Lipetsk's area with training and technical support using the EU Tacis Programme funding

  16. The policy of the Marches Region aims at supporting and leading internationalisation processes in the industrial districts in the Marches (c) • In June 2003 a delegation from the Lipetsk's area and a delegation from the Marches Region met a few representatives of the Confindustria – Confederation of the Italian Industry – and of the Marche Polytechnical University. Ministry of Industrial Activities and ICE – Italian Trade Commission – representatives took part in this event: • Twinning Lipetsk's and Fabriano's municipalities • Collaboration between Lipetsk's and Ancona's Universities • Setting-up a "Casa Marche" in Lipetsk • Marches Region Integrated Project Progress – Ministry of Industrial Activities • Cooperation in the domains of tourism, sports, culture and media

  17. Integrated Project Progress Made submitted by the Marches Region to the Ministry of Industrial Activities and ICE - Italian Trade Commission The Integrated Project submitted by the Marches Region to Ministry of Industrial Activities and ICE Italian Trade Commission – was passed by Ministry of Industrial Activities in June 2003. ICE will allocate assets accounting for 200,000 EURO to the first year of the Project. A further element boosting the collaboration between the Italian Government, the Marches Region and Lipetsk's area will be the Tacis project submitted by the Marches Region and passed by the EU in September 2003. This project will last for 24 months.

  18. Lipetsk's Project by the Marches Region • In September 2003 the Regional Council decided to launch a project aimed at cloning the engineering model district of the Marches in Lipetsk's area. • This project will be put into effect within the framework of the collaboration with Ministry of Industrial Activities and the Agreement signed in July 2003 by ICE – Italian Trade Commission – lying inside the scope of the Action Plan Agreement between Ministry of Industrial Activities and the Marches Region. This initiative will total 615,000 euros sponsored by the Marches Region, ICE – Italian Trade Commission and EU Tacis Program. • The Lipetsk's Project was defined as “… a project aiming at supporting the creation of the first Russian-Italian industrial district in Liptesk's area … and it is intended as an opportunity for small and medium sized enterprises of the Marches to become international and grow more competitive in a quite well-established export market …” • The initiatives for the first year can be summed up as follows: • Exploratory and cognitive stage for the industrial district of the Marches to start up in Lipetsk • Cloning Fabriano's Meccano s.p.a. Service Centre • “Casa Marche”, a fair ground • A collaboration between Ancona's and Lipetsk's Universities

  19. UE TACIS Project aims at supporting the Lipetsk Regional Authority in its economic development and employment level increaseSet up of a Service Center Pilot Unit in LipetskProject structure • Technical Secretariat • n° 1 Marche Region Project Managing Director • n° 1 Marche Region Project Manager • n° 1 Marche Region Project Managing Administrative/Accountant • n° 1 Meccano Project Manager Technical Scientific Committee n° 1 Meccano Technical Expert n° 1 Lipetsk Industrial Associate Technical Expert n° 1 Ancona University Expert n° 1 Lipetsk University Expert • Operative Working Group • n° 1 Lipetsk Regional Authority Project Manager • n° 2 Lipetsk Regional Authority Administratives • n° 2 Lipetsk Industrial Association Administratives • n° 4 Meccano Technicals Service Center Pilot Unit n° 1 Administrative Staff n° 4 Technical Staff

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