Formation of the Cluster of Automotive Components in Saint-Petersburg June 2008
«About 80% of cars sold in Russia have to be produced on our territory» V.V.Putin, The Prime Minister of Russia Slide 2
Forecast of production of foreign brand passenger cars in Saint-Petersburg region 2007-2012, 2012, pieces. Factories 2007 2008 2009 2010 2011 2012 Ford Motor Company 72 000 110 000 125 000 175000 200 000 220 000 Toyota Company Manufacturing 300 16 000 40 000 80 000 130 000 150 000 GM 4 000 10 000 25 000 80 000 100 000 130 000 Nissan - - 20 000 60 000 80 000 100 000 Hyundai Motor - - 10 000 80 000 100 000 140 000 Suzuki Motor - - - 26 000 50 000 100 000 TOTAL 76 300 136 000 220 000 501 000 660 000 840 000 Slide 3
Dynamics of the fraction of cost of automotive components in the total cost of an automobile 1990 2006 Main trends: Increase of specific rates of cost of high-technology packages and assemblies requiring special research and development in the final cost of an automobile Car assembly factories transfer production of a greater part of units and components to outsourcing Slide 4
Capacity of the market of automotive components in Saint-Petersburg Capacity of the market of new passenger cars in Saint-Petersburg by 2012 will be about 10 billion Euros annually Obligatory condition for autocomponent production localization - 30-40% Capacity of the market of automotive components in Saint- Petersburg by 2012 3-4 млрд евро в год Forming of conditions for arrival of automotive components manufacturers in Saint-Petersburg Slide 5
Main problems of the cluster forming Need in a strategic Russian partner obtaining experience in cooperation with local authorities and knowing Russian specific characteristics of the developing process in industrial premises; Lack of own funds for investments into engineering preparation of an industrial area and construction of a new factory (it is particullarlly specific for small and medium companies; Absence of the required number of industrial plots and parks with prepared engineering infrastructure in Saint-Petersburg region. Slide 6
Saint-Petersburg association of producers of autocomponents Russian automobile companies Subsidiaries of foreign automobile companies A MODEL OF COORDINATION OF THE CITY PROGRAM FOR DEVELOPMENT OF AUTOMOTIVE COMPONENT PRODUCTION St. Petersburg Government Vice Governor of St. Petersburg RF Government Federal departments Committees Рабочая группа Working * Group* profiled other Saint-Petersburg association of producers of autocomponents (SPbAPAC) Coordinated decisions City services * - Working Group for elaboration and implementation of measures aimed at establishing a cluster of manufacturers (suppliers) of components for the needs of motor industry, established by the Committee for economic development, industrial policy and trade at the St. Petersburg Government Slide 7
Saint-Petersburg association of producers of autocomponents Foreign states A MODEL OF ESTABLISHMENT OF THE CLUSTER OF AUTOMOTIVE COMPONENT MANUFACTURERS IN ST. PETERSBURG Russian Federation Foreign automobile companies Russian automobile companies Subsidiaries of foreign automobile companies RF Government St. Petersburg Government automotive components Foreign automotive component manufacturers Share in assets, technologies, equipment, licenses, documentation automotive components A cluster of automotive component manufacturers being established in St. Petersburg JV СП СП СП technopark(s) New productions Existing productions St. Petersburg Association of producers of automotive components (SPbAPAC) Investment Fund for supporting projects in the sphere of automotive component production Slide 8
Location of cluster main premises Distance to main OEMs in St. Petersburg Region: Shushary (GM, Toyota, Suzuki) 20 km over RH Vsevolozhsk (Ford Motor) 15 km over RH or directly Kamenka (Nissan, Hyundai) 35 km over RH Saint- Petersburg PACM location Zones of possible location of satellite parks Ring Highway (RH) Slide 9
Saint-Petersburg association of producers of autocomponents Saint Petersburg cluster of automotive component manufacturers: general integration OEM 1 OEM 2 OEM Satellite Industrial Park S1 S2 S3 S4 S5 S6 National and international suppliers of Level 2 and Level 3 CENTRAL INDUSTRIAL PARK OEM 3 S7 S8 S9 OEM Satellite Industrial Park S13 S14 S15 S10 S11 S12 OEM 5 OEM 4 Slide 10
Lay out of the Central park territory ZONES OF PLANNED PLACEMENT OF CAPITAL CONSTRUCTION OBJECTS SAINT-PETERSBURG VILLAGE KOLTUSHI RING HIGHWAY RED LINES ROAD POLES TERRITORIES OF GREEN PLANTATION PAVING TILE ENGINEERING AND TECHNICAL FACILITIES MANUFACTURING PURPOSES PRODUCTION AND STORAGE PURPOSES SOCIAL AND BUSINESS PURPOSES OBJECTS OF ENGINEERING AND TRANSPORT INFRASTRUCTURE OBJECTS OF RAILWAY TRANSPORT MAIN RAILWAY ROADS ACCESS RAILWAY ROADS BEING DESIGNED STREETS AND PASSAGES WITH ASPHALT COAT MGA RING HIGHWAY Slide 11
TRANSPORT INFRASTRUCTURE TRANSPORT INFRASTRUCTURE LAYOUT FINLAND MAIN RAILWAY ROADS MAIN AUTOROADS RING HIGHWAY (RH) ROAD FLYOVERS OVERPASSES BRIDGES METRO STATIONS Slide 12
ENGINEERING SUPPLY Lay out of the territory engineering supply draft water supply water-supply pipeline networks RH sewerage system sewage-purification facilities pressurized sewerage systems power supply cable line 110kV electric power substation (110/10 kv) gas supply gas distribution network of high pressure gas control point Murmansk Highway Slide 13
Saint-Petersburg association of producers of autocomponents Saint Petersburg cluster of automotive component manufacturers: territorial parameters and production areas CENTRAL INDUSTRIAL PARK Current needs: Possible expansions: Parks being satellites of automobile assembly plants Total needs: 80 hectares for the central park 375 thousand sq.m of production areas 20 30 hectares for the central park 15 20 hectares for each satellite park, it is expected to arrange 4 satellite parks 180 hectares on 5 different sites 600 thousand sq.m of production areas Slide 14
Saint-Petersburg association of producers of autocomponents St. Petersburg cluster of automotive component manufacturers: main investment parameters By calculations: INDUSTRIAL PARK Satellite Industrial Park (each) Size Price/sq.m Total Size Total Buildings: 375 000 sq.m 1000-1250/sq.m 375-470 mln 18 500 sq.m 18,5-23,1 mln Infrastructure: 500 000 sq.m 100-125/sq.m 50,0-62,5 mln 18 500 sq.m 1,9-2,3 mln Equipment: the cluster participant comes with its own equipment; Total volume of investment in equipment: 620-740 mln Total volume of investment in the project: 1125-1375 mln Seite 15 Slide 15
Saint-Petersburg association of producers of autocomponents St. Petersburg Association of producers of automotive components Members of Association Recipients of the Fund (as a part of the cluster of automotive component manufacturers being formed) Investors of the Fund Investment Fund for supporting projects in the sphere of automotive component production at SPbAPAC (Joint activity agreement) investments (contributions from the Fund to charter capitals, loans, etc.) Fund Managing Company (investment resources (contributions to the Fund)) Recipients projects opinions on recipients projects Fund s Expert Council Information materials, statistical data, etc. Integral Association s database СП assessment of project elements, issue of analytical reference statements, opinions, etc. Association s services СП Slide 16
Calendar schedule of the project (pilot calculations 2008 2009 2010 I II III IV I II III IV I II III IV Project documentation approvement Master-planning and zoning Main utilities reservation and projecting External engineering communications construction Intrapark engineering infrastructure planning and construction, built-to-suit projecting for the residents of PACM Built-to suit construction for the residents of PACM Signing of lease or rent contracts with the residents of PACM Slide 17
Projects of automotive component manufacturers being realized in St. Petersburg cluster Tenneco exhaust system producing factory Stadco body producing factory Johnson Controls seat producing factory Magna International constructing an automotive component factory in the industrial zone «Shushary» Toyota Boshoku constructing a seat producing factory AD Plastik Luga factory producing plastic automotive components Nokian Tyres tyre producing factory Magnitogorsk Metallurgical Plant (Intercos-IV) a factory producing stampings Russian Soda Company a factory producing automobile glass Slide 18
Location of automotive component productions of St.Petersburg cluster Acting ОЕМs: Ford Toyota St. Petersburg Acting manufacturers of automotive components: Autocomponents and Equipment (AD Plastic Luga) MMP (Intercos-4) Johnson Controls Tenneco OEMs under construction: GM Suzuki Nissan Hyundai Components productions being developed and constructed: MAGNA Stadco Toyota Boshoku Russian Soda Company AUTOCOMPONENTS AND EQUIPMENT Slide 19