Russian market
Automation & Robotics
Basic informations about Russia
Basic information about Russia
Largest country in the world in terms of area (more than 6.6 million square miles)
More than 142 million inhabitants
Russia’s labor force totaled to 75.81 million in 2009
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Basic informations about Russia
1999 6,5%
GDP historical data and forecast 2000 10%
2001 5,7%
2002 4,9%
2003 7,3%
2004 7,2%
2005 6,4%
2006 8,2%
2007 8,5%
2008 5,2%
2009 -7,9%
In average 7% per year
1992 85.592 1997 404.946 2002 345.486 2007 1294.05 2012 1978.38
1993 183.816 1998 271.038 2003 431.429 2008 1660.01 2013 2282.65
1994 276.902 1999 195.907 2004 591.902 2009 1229.23 2014 2649.38
1995 313.451 2000 259.702 2005 764.256 2010 1507.59 2015 3060.6
1996 391.775 2001 306.583 2006 989.428 2011 1733.88
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Basic informations about Russia
GDP influenced by comodities prices
Investments influenced by oil & gas prices
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Basic informations about Russia
• Market and Technology
• Oil/Gas, basic materials; comodities economy base
• High request for technology, gap to cover
• “Strategic” investment decided by government, limited private initiatives
• Large industries, 100% in house production, no subsuppliers
• Import economy (final goods) market for dealers
• Local consumption, no export for finish products
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Russian Industrial Economy
06 October 2010
Government Focuses on Foreign Investment
Russia Stocks to Gain 38% on ‘Modernization’ Plans
December 01, 2010, 11:14 AM EST
Russian Manufacturing Expanded at Fastest Pace
Since March 2008
December 27, 2010, 11:17 AM EST
Modernization means AUTOMATION
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Government Focuses on Foreign Investment
Case Study : Automotive &
Automotive supply
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Government Focuses on Foreign Investment
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Government Focuses on Foreign Investment
Government Modernization Program on Russian Industry:
strategic industries
Russian Railway, Shipbuilding, Aereospace, Military pourpose
Partnerships (JV) Russian companies cannot fill the gap
AvtoVAZ, Gaz, Kamaz, Solers
New investments plants; VW, PSA, Hyundai, Caterpillar, Nestle’, Unilever,
Ferrero
Specific Economic Zones, import and duty facilities
Facilitated Investment Program
Infrastructural Investments
Facilitated procedures for Managers and Engineers
Tax benefits
A significant number of companies
considering entering Russia shortly
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Government Focuses on Foreign Investment
Case study
VW start production in 2009, partial automation, in total 100 robots
Why in Russia? Why in Kaluga?
Production level 60.000 cars
Where are Tier ones ?
Magna Kaluga (2010)
Faurencia (2010)
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Russia to Gain 38% on ‘Modernization’ Plans
Case Study : Railway,
Aereospace
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Russia to Gain 38% on ‘Modernization’ Plans
Specific Investment Program financed by government
Up to 70% of the investment financed by government or regions
Specific finance program for AUTOMATION and ROBOTICS
Specific Investment in Education and Specialization
Specific High Technologies areas, Nanotecnology, Silicon, IT
Merge and acquisitions by Russian High Value Companies
Gazprom, Lukoil, Rusal
Creation of new industries to absorb unemployment
Togliatti, creation of Tier1 and Aereospace industry
Mandatory to fill the gap with international companies
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Russia to Gain 38% on ‘Modernization’ Plans
Limits to “Modernization” and Automation programs
Lack of quality and standards on productions
Lack of the minimal production volume
Organization and Structure of production
Social support to unemployment
Education and specialization
Salary level and regulations
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Average Salary per month, year 2009
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Expectations and forecast
Russian Manufacturing Expanded at Fastest Pace
Since March 2008
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Expectations and forecast
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Expectations and forecast
Goverment specifically target production industry
Fight to corruption and bribes
International agreements and developments plants
WTO entry
Free circulations of goods and people (Russia/Belarus/Kazakhstan)
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Framework important conditions
Russia is a local market
Business environment in Russia is different than all other markets
Follow international OEM’s but be Russian
Russia is lead by dealers
Political, Economical and Infrastructural environment is a key.
Special economic zones
Import duties, rules and documentation
Investment program
Different regions, cultures, religions, influence from neighborhood countries
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