13 April ‘20

MMK co-finances small and medium-sized business projects

MMK's support is provided to create a new, or expand an existing, production facility on a competitive basis. The share of co-financing will be up to 30% of the cost of the project, but not more than RUB 15 million.

In 2019, two residents of the MMK Industrial Park took advantage of this opportunity for a total of RUB 7.5 million in co-financing. In 2020, Magnitogorsk Metalworking Plant (MMZ) was the first company to take advantage of the opportunity to expand their production. The company's main activity is the manufacture and supply of wear-resistant elements to Russian Railways companies, as well as components for the upper structure of train tracks. Currently, MMZ is implementing the second stage of its project worth RUB 60 million, which is expected to create an additional 50 new jobs and increase the output of finished products to 2.5 thousand tonnes per month.

"Co-financing is an important incentive and mark of confidence for companies that have decided to organise or expand industrial production in the MMK Industrial Park," said Pavel Shilyaev, CEO of MMK. "Residents of the Industrial Park already use the tools of regional support, they receive local rental rates – only RUB 66 per square metre per month, which is half the average rental rate in Magnitogorsk."
MMK-Industrial Park is a subsidiary of MMK and MMK-Metiz. MMK Industrial Park is a business-ready asset complex with an area of 65 hectares. With a comprehensive engineering infrastructure and a developed rail network, it boasts all the necessary conditions for the quick launch of virtually any new production process. MMK-Industrial Park has been accredited by the Ministry of Industry and Trade of the Russian Federation, which allows investors to apply a system of tax incentives, such as zeroing the property tax rate and reducing the regional component of the income tax rate by 3.5%. To date, 26 residents are operating on the site.
Detailed information about MMK Industrial Park can be found here www.mmk.ru/indpark.

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