2 December 2022

Asphalt concrete factory of a new resident of the Russian Arctic Zone will help reduce the cost of road construction in Norilsk

ILAN-Norilsk company (part of the Urals Group of Companies, a leader in transport and road construction in Western Siberia) is preparing to start building an asphalt concrete factory and auxiliary production. The project will be implemented under an agreement with the Corporation for the Development of the Far East and the Arctic in Norilsk. The volume of private investment is about 225 million rubles. The resident of the Russian Arctic plans to start production of bituminous mixtures based on natural asphalt by the autumn of 2027.

Consulting support at the stage of preparing an application, as well as the assistance in obtaining state support for implementing the investment projects of ILAN-Norilsk was provided by the Yenisey Siberia Development Corporation – a management company working with the residents of the Arctic Zone in Krasnoyarsk Region.

“Our company specializes in the construction and operation of road facilities using modern technologies and the provision of transport and mechanized services for fuel and energy companies and the mining industry,” said Altyngul Kurmantayeva, first deputy CEO of ILAN–Norilsk LLC.  “ We conducted a market analysis that showed a high demand for asphalt concrete during the construction of new and maintenance of the existing roads in the territory of Norilsk. Therefore, it was decided to fill this need and create its own production near the target market. Our factory will help to reduce the cost of production by eliminating the cost of delivering materials during the construction of the roadway, which will have a positive impact on the net profit of the companies.”

The investor plans to start implementing the project by the end of this year. To create an asphalt concrete factory, the existing production base will be reconstructed, along with design and survey and construction and installation works. Due to the acquisition of land plots with a total area of 10 hectares, which are currently leased to the investor, they will increase the area of the facility and improve its current characteristics, create auxiliary production – dispatch and repair services. There will also be warehouses for storing building materials and spare parts, as well as shops for equipment maintenance.

Most of the funds will be used to purchase equipment: an asphalt mixer and a mobile crusher. ILAN-Norilsk expects to produce 237,600 tons of asphalt concrete mix per year.

“”We welcome initiatives to implement projects in the Russian Arctic and support investors who are ready to invest in the development of the Far North regions,” said Vladimir Gudkov, deputy director of the Department of Support Investment Projects in the Russian Arctic Zone at the Far East and Arctic Development Corporation. “The regions are actively taking advantage of the opportunities provided by the Arctic benefits package. With the help of state support – tax benefits and administrative preferences, residents of the Russian Arctic contribute to the development of the economy, create new enterprises and jobs for local residents. And we, in turn, create the most comfortable conditions for entrepreneurs.”

The Russian Arctic is the largest economic zone with an integrated set of tax and administrative preferences for investment activities. Currently, 22 residents are implementing their projects in the Arctic zone of Krasnoyarsk Region, and the total investment volume amounts to more than 36.9 billion rubles.

Yenisey Siberia Development Corporation and the Far East and Arctic Development Corporation have signed an agreement to implement joint projects in the field of sustainable development of the Arctic territories of Krasnoyarsk Region. This document implies joint development of recommendations to improve the quality of life of the population, and joint participation in activities associated to the implementation of investment projects in the Arctic Zone of the region.

Applications for obtaining the status of a resident of the Russian Arctic are submitted on the Investment Portal of the Arctic Zone of Russia. When registering, an applicant should state the basic parameters of the planned project and will be given an access to their personal account which has the forms required for getting the Arctic Zone resident status. All inquiries regarding the Arctic Zone resident status should be sent to Yenisey Siberia Development Corporation: +7 (923) 322-33-07, invest@ensib.ru.