KAMAZ to invest 200 billion in new industrial park in the auto city

KIP Master creating a clone of itself?

The auto city is preparing to implement an ambitious new project — the Naberezhnye Chelny Industrial Park, planned for construction between 2027 and 2042. A resolution of the Tatarstan Cabinet of Ministers has been prepared on the instruction of the Rais of Tatarstan and is currently undergoing expert review.

The project will be implemented under the state program “Development of Industry and Increasing Its Competitiveness," with subsequent reimbursement of costs for creating the facility through budget subsidies. For this, the park's management company — Master Research and Production Company LLC — still needs to be accredited by the Russian Ministry of Industry and Trade.

The estimated construction cost is 200 billion rubles. Construction is planned using the company's own funds. The park's management company was established at the end of February as a subsidiary of KAMAZ — the Kama Industrial Park “Master.” It is already developing seven similar projects in other Russian regions and in Uzbekistan. NPP Master could become the eighth, and it will be built in Naberezhnye Chelny.

The projected implementation period for the project is 20 years (2027–2046), with a cost reimbursement period of 15 years (2028–2042). Under the program's terms, the management company can reimburse up to 75% of costs (within the limits of taxes paid to the federal budget by the park's residents), of which:

• 99% co-financing from the federal budget;
• 1% financing from the budget of the Republic of Tatarstan.

New industrial park of up to 1 million square meters

The draft resolution of the Tatarstan Cabinet of Ministers on the creation of NPP Master does not require recognizing certain acts of the Tatarstan government as invalid. The industrial park will be built to develop the republic's industrial infrastructure facilities at the proposal of the Ministry of Economy of Tatarstan, which has also been tasked with overseeing its implementation.

The Ministry and KAMAZ have not yet responded to Realnoe Vremya's inquiry about the creation of NPP Master. KIP Master, under whose management the project will be implemented, suggested waiting for the resolution to be issued.

According to expert estimates, considering the investment of 200 billion rubles in the project and the construction cost of technoparks in the republic ranging from 200,000 to 250,000 rubles per square meter, the new industrial park will offer the market from 800,000 to 1 million square meters. Industry experts believe that the Kama region market, facing a shortage of quality production space, will quickly absorb this capacity.

The total area of KIP Master itself is 1.5 million square meters, meaning the NPP Master it creates will be about two-thirds of that size. Currently, the Kama Industrial Park owns and manages 214 hectares of land. It is the republic's first industrial park, created by KAMAZ in 2004 on the site of the former Remdizel plant. Similar projects have been established in Bashkortostan, Stavropol Krai, Yaroslavl, Ulyanovsk, Kaliningrad, Penza regions, and also outside Russia — in the city of Navoi, Uzbekistan. All of them are subsidiaries of KIP Master.

“High-margin businesses needed; long timelines risk cash gaps”

— One obvious reason for creating a new industrial park is the availability of support measures. If specific competition conditions require the creation of a separate park, then KIP Master likely decided to proceed accordingly. This happens; there's nothing unusual about it, — believes Sergey Mayorov, Advisor to the Minister of Industry and Trade of Tatarstan, Chairman of the Industrial Cluster of the Republic, and head of the Business Association of Clusters of Russia.

Since the specialization of NPP Master has not yet been announced, it will likely attract residents from various industries, he suggested. The leading industry in Naberezhnye Chelny is automotive manufacturing, so auto component producers, he says, will be of particular interest, despite the current downturn in the automotive sector and related industries.

— Other areas are also developing. For example, Haier is engaged in the production of household appliances — this could also serve as a reference point, including for the production of components, — the speaker added.

— If the project is implemented as a state one, cost reimbursement comes from residents' taxes — up to 100%. In such a case, high-margin businesses are needed. With a long payback period, there is a risk of a cash gap. If it is a private technopark, about 80% of its creation costs are compensated. Then the main risks fall on investors — there is a chance that part of the funds will not be returned, — Sergey Mayorov noted.

According to him, the republic is adept at using such tools: last year, it attracted 149.4 billion rubles, most of which went to the construction of technoparks.

— As long as such support measures exist, they should be used — nothing lasts forever, — the minister's advisor remarked.

The most effective development model for any municipality, he says, is ready-made sites for investment.

— It's hard to say specifically about this project, but usually building a technopark solely with own funds is extremely difficult. Typically, own funds, borrowed money, subsidies, and preferential financing are used. Most likely, all available instruments will be utilized. If support measures are insufficient, own and borrowed financing will have to be added, — Sergey Mayorov believes.

Regarding the creation of technoparks in general, the source is convinced that they should be created primarily in the districts of Tatarstan, especially those experiencing pendulum migration. For example, in Agryz, whose residents migrate to Udmurtia; in Bugulma, from where people leave for work in the Samara region; or in Buinsk, which sees outflow towards the Ulyanovsk region.

— It is important for us to bring the population back to these areas. But this is not a simple issue: returning people is not enough — trained specialists and developed infrastructure are needed. If technoparks are created in such districts, Tatarstan could quickly increase the budget effect currently being generated in other regions, — concluded the head of the republic's Industrial Cluster.

“Payback period for new production space could exceed 10 years”

— The creation of an industrial park primarily provides additional benefits for local producers. This promotes the development of the manufacturing sector and the emergence of new types of products in the city. The economy of Naberezhnye Chelny is largely built on small and medium-sized businesses. For its development, ready-made space and infrastructure are needed — to make it easier for entrepreneurs to enter the market. And the market's potential allows for this. Chelny is a major industrial city, and such development is necessary, — believes Konstantin Puchkin, head of Industrial Park Management Company (which manages industrial parks in Naberezhnye Chelny and Nizhnekamsk — author's note).

Discussing the prospects for the development of NPP Master, the speaker stated that a mixed orientation should be considered — not limiting the park to a single specialization. According to him, different productions can be brought together under one roof, as long as they comply with sanitary zone and emission level requirements.

“In the current economic situation, it is important to support all entrepreneurs ready to invest in new production. Possible areas include the food industry, construction materials production, and other sectors.”

However, limitations must be considered: for example, food production cannot be located near certain industrial facilities — this is prohibited by sanitary norms and emission requirements. Therefore, a priority direction will have to be chosen: either industrial production or food product manufacturing.

Naberezhnye Chelny faces a significant shortage of production space — the city is developing dynamically, especially in the small and medium-sized business sector. Therefore, new production space is needed, but it is important to choose the right profile for the industrial park, believes Sergey Maslekhin, an investment consultant at the company “The Right Decision.” Currently, he says, Naberezhnye Chelny is essentially one large production base.

— For the past 25–30 years, there has been a gradual relocation of enterprises from so-called “Class G” and “Class H” premises to more modern facilities. Production bases are aging; the process will only end when all Soviet-era legacy in the form of old buildings and industrial sites is eliminated. Projects like “Garage 500," “Garage 2000," and industrial zones are precisely those older property complexes requiring reconstruction and major repairs. Little attention was paid to this in the 1990s, so the renovation process is now active and will continue for a long time.

SMEs and new enterprises always have a need for modern production space, the expert noted. Independently building new facilities is currently problematic for them due to high construction costs and expensive loans. “The payback period could exceed 10 years. Therefore, many prefer to build for themselves if they have the opportunity, but projects for rent are rarely launched. Rental rates in Chelny likely already reach 500–700 rubles per square meter. So no matter how much space is brought into operation, it will still be insufficient.”

Owners of old production bases often go bankrupt and sell off assets. In recent years, many manufacturing enterprises have closed, creating opportunities to buy and re-equip such sites, the speaker indicated. This creates a need to develop new territories. As for choosing the specialization of the industrial park, there are many options, he says.

— For example, the food industry is always in demand. Construction materials or metal structures production — especially considering logistics: local producers can gain an advantage by shortening delivery distances. Metalworking — though competition is already high here. Production of corrugated sheets and other materials for individual housing construction — demand for them remains consistently high.

Local features must also be considered: some businesses cannot or do not want to leave the region due to specific logistics or demand patterns, the source noted. For example, concrete or metal structures production for local needs.