Chinese investor plans to make machines for plastic processing in Bashkiria

In Bashkortostan, with the assistance of an investor from China, it is planned to create the country's first full-cycle production of injection molding machines. Details of the joint project were discussed at a meeting of the Bashkortostan delegation with the director of Shandong Tongjia Intelligent Equipment Co Ltd, Mr. Yan Zhangchao.

The Ministry of Industry of Bashkiria noted that the republic, as the leader in the ranking of the effectiveness of industrial policy in the Russian Federation, is interested in forming a cluster in the field of mechanical engineering for the plastics industry. This will diversify the region's industry and strengthen industrial potential. The delegation of Bashkortostan invited their colleagues to consider localizing the production of advanced plastic processing equipment on the Republic's territory. It is proposed that the production be located in the Alga SEZ, where it is possible to allocate a plot of up to 1.5 thousand sq.m.

SEZ residents enjoy a wide range of preferences, from a reduction in the income tax rate for up to 5 years and exemption from property tax for the period of the facility's construction to subsidizing part of the costs of creating the project infrastructure and providing a tax investment credit. Such support significantly reduces costs at the initial stage and speeds up the entry of the investment project to the operational stage.

“The negotiations were very successful, and we intend to build a plant in Bashkortostan. Our company will visit your republic shortly to study local conditions and resources, including human ones, to open production. If negotiations are successful, we will begin implementing our project in the second half of 2024,” commented Yan Zhangchao.

The businessman noted that the company’s advantage is its leadership, scale, and authority at the federal level in China. In Bashkortostan, a long-time partner of the Chinese investor, the local company Yinshu, will join the implementation of the project.

The investor was invited to present the project's implementation details at the “Investment Hour” session with Bashkortostan's head, Radiy Khabirov.

Author: Elina Akhmetova