Industry of the region

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Investment projects

Implementation of large-scale investment projects in machine building area has led to the establishment of a new sub-brunch of economy in the region – automobile production.Taganrogautomobile plant is the only automobile manufacturer with the growing production output in theSouthern Federal District. For the past 10 years more that 300 thousand automobiles have been manufactured for the internal market. Production capacities enable the production of 12 various types of automobiles simultaneously. The main strategic goal of the company is the start-up of own brand automobile manufacturing.

Major iron and steel plants are located inTaganrog,Novocherkassk, Belaya Kalitva, Krasniy Sulin. They manufacture steel, rolled steel, wire, drilling, water and gas pipes, electrodes for aluminum industry. Metallurgy sector of the Don land is developing due do investment of large Russian finance and industrial groups, such as Pipe Metallurgy Company, holding company Russian Aluminum, Industrial Group MAIR. OJSC Energoprom-NEZ is the largest plant inRussiawhich produces graphitized electrodes. Main consumers of the plant’s product are the largest companies both inRussiaand abroad.

Heavy duty helicopters MI-26 and MI-26T are manufactured by OJSC Rostvertol. These helicopters (including spare parts) are exported to 20 countries of the world.

Rostovregion enjoys the whole range of highly-technological production industries.

Most developed directions of the chemical industry are products of oil chemistry, paints, decorative coatings, chemical and synthetic fiber. The leading companies in the brunch are OJSC Novoshacktinsk Oil-product Plant with the processing capacity 2,5 mln. tons annually, CJSC Empils and OJSC Kamenskvolokno.

For the past several years light industry of the region maintains positive dynamics of development despite the reduction of volumes in this branch of economy overall inRussia. The share of light industry in the total industrial output of the region consistently makes up 4% which is significantly higher than overall in the country. The development level of the light industry is defined by the leading manufacturers of the region: CJSC Gloria Jeans, OJSC Donetskaya Manufactura, CJSC Don Teks,  CJSC Donobuv, CJSC PFK Elegant. Sales of the product to CIS and European countries have noticeably gone up too. Stabilization of the industrial production was facilitated by the federal and regional authorities.

Rostovregion is one of the largest defence industry centers of theRussian Federation.  The milestones of the Don defence industry are engineer development and production of space and aviation equipment, radio-electronic products, ammunition, shipbuilding and specialized chemical products.

Machine-Building Industry

Mechanical engineering has been the leading industry in the region for a long time. Large regional manufacturing companies producing unique machines and equipment are recognized both in Russia and abroad.

Rostselmash is one of the 5 world leaders in the production of combine harvesters and farming machines. Since its foundation in 1929 the factory has produced more than 2.6 million of farming machines shipped to more than 48 countries.

This company underwent a significant technical modernization. Laser cutting, bending, assembling, bridge manufacturing equipment and a new paint line were installed.

TodayRostselmashis the leader in farming machinery production in CIS, holding 63% of the market in Russia and CIS and 17% of the global market. Its production is exported to more than 20 countries.

Farming machines and engineering developments have repeatedly received Russian and international awards. At the XVI International Agroindustrial Forum “Yugagro-2009” the company received 6 Diplomas for designing and producing high-performance energy-efficient and resource-saving machinery. The jury highly appreciated rotor combine TORUM 740, tractor VERSATILE 400, self-propelled harvesting unit ES 1 and forage equipment.

7Rostvertol PLCwas established in 1939. Today it manufactures helicopters MI-26T, designed for transportation of large-size loads up to 20 tons.

Today it is exported to 20 countries. Foreign partners use the updated model of MI-35, equipped with the observation-sight subsystem, night vision and satellite navigation systems.

MI-28N is another new generation helicopter that can operate by day and night and in adverse weather conditions. It is equipped with airborne radio electronic complex.

Taganrogboiler building plant “Krasny Kotelshchik”established in 1896 is the largest enterprise in Russia producing thermal power plant boilers. The enterprise is a manufacturer of steam boilers, boiler, heat-exchange, water treatment and supplementary equipment such as energy steam boilers for turbines of wide range of power ratings, heat-exchange equipment, water treatment equipment, energy fittings for thermal power plants, barrels and vessels of various applications, boilers and heating installations for power industry, modular automated steam plants for oil production intensification, welded and bolted metal constructs of various applications.

Quality control system in this plant meets Russian and international standards. Main clients are companies operating in the power industry in Russia, CIS, Germany, India and Pakistan and China.

For decades since its foundation in 1934Beriev Aircraft Companyhas contributed immensely into the aircraft construction. It designed, manufactured and updated more than 20 types of modern civil and military aircrafts.  Today the company focuses on the production of the amphibian aircrafts used in rescue and transportation services and agriculture.

In 2007Beriev Aircraft Companybecame a member of the United Aircraft Building Corporation. Nowdays the company develops schemes and mechanisms of creation of hydra amphibian aircraft complex. This complex will be regarded as one of the priorities of the United Aircraft Building Corporation.

Taganrogautomobile plantwas built in 1998 on the basis of the former Taganrog Combine Factory featuring welding, painting, assembly and development shops with the classic test system. In 10 years it produced more than 300 000 cars for the domestic market.

This plant can assemble more than 12 different car models, including crossovers, light trucks, truck tractors and buses. Today it produces 13 models of passenger cars and industrial machinery (9 models of passenger cars, 2 models of trucks,Countybus andTractortractive unit.

Production of own brand cars is defined as the strategic goal.

In 2009 it started production of 5-door body-on-frame crossoverTagaz Tager, pickup offroaderTagaz Master LC 100. In the middle of 2009 the enterprise launched production of self-designed C class sedanTagaz Vega C 100(designed by own design engineering departmentTagaz Koreaopened 4 years ago).

Novocherkassk Electric Locomotive Plant is part ofCJSC Transmashholding. It is the largest Russian producer of main line freight and passenger locomotives. This company possesses a unique scientific, technological and production capacities.

80% of railroad locomotives in Russia and CIS are produced by this plant. They are recognized as safe and reliable and can work both in severe climate and terrain conditions. Over 70 years the plant produced more than 15000 locomotives of more than 50 types.

OJSCCityBearing Plant No. 10was established in1955 and takes the leading plant producing rolling bearings: cylinder rolling, needle, propshaft and bearings and car spare parts. They are used by large automobile and tractor plants in Russia and CIS, electro technical and metallurgy companies, exported to Ukraine, Byelorussia, Lithuania. Its large consumers areOJSC UAZ, Zavolzhskiy Motor Plantand others.

Kamensk Mechanical Engineering Plantproduces high efficiency mechanical fittings exported mainly to Ukraine. Today this plant produces fittings of different modifications hydraulic car pushers for coal industry, consumer goods, agricultural products (ploughs, cylinders, etc).

Its production has a long operating life and is employed in mining industry tailor made for certain industries. This plant has own designing developments and licensed inventions.

CJSC KOMZ-Exportwas established in 1998 and manufactures multifunctional equipment for automation of construction processes. It produces cemet-mixers, mobile cement plants and motor truck scales under trademarkTigarbo. Besides it also produces welding electrodes. It has a large net of dealer offices allowing sailing without intermediary companies.

Existing mechanical equipment potential opens large possibilities for development and massive production of new high-tech products.

Coal-Mining Industry

Rostov is the key coal-mining region in the North-Caucasus region. Its territory is explored by about 6.5 billion tons of coal resources.

Anthracite is unique in the quality characteristics of extracted coal.

Coal reserves suitable for working out are about 285 million tons of the current mine fund of the Eastern Donbass. For possible development in the current economic conditions there are 10 prospective areas with coal reserves of 545 million tons. Rostov Region has a great potential of known coal reserves that are available for working out in the amount of 830 million tons.

Coal companies are located within Eastern Donbass, one of the oldest coal basins, that has a favorable geographical position. The proximity to the Black and Azov Sea ports and to other regions of the Southern Federal District makes coal industry one of the key energy resources of the region.

Coal companies are concentrated in 7 administrative districts of the region. Both main and auxiliary facilities of coal industry employ over 13 000 people.

Today there are 5 coal companies operating on the territory of the region:OJSC Russian Coal - Don, OJSC Don Coal, South Coal Company Ltd, OJSC Vostochnaya Coal Mine, Rostov Coal Company Ltd.

There are 8 functioning mines and 2 mines under construction. Total annual capacity of existing mines is about 9.5 million tons. Coal production meets industrial and domestic demand. The region also exports coal to CIS and distant countries.

In the outlook the development of the coal industry presumes the modernization of existing companies and establishment of new companies on potential coalfields.

Light Industry

During several last years regional lightindustry has seen a positive dynamics. And this was despite general production cut in this sector in Russia. Share of the light industry in the industrial production steadily makes 4%, which is higher than in Russia at large.Gloria Jeans Corporation,OJSC Donetsk Manufactory M,CJSC Dontex, CJSC Donobuv, CJSC Elegantbring forth the growth of this industry.

Gloria Jeans Corporationtakes up more than 60% of the region’s light industry production. It’s a Russia’s leading company of children’s clothing underGloria JeansandGee Jay trademarks. Its production capacity includes 11 divisions in Russia andStile Companyin Ukraine. Its chain of retail stores covers not only Rostov region but almost the entire country.

OJSC Donetsk Manufacture MandCJSC Don-Texare the largest companies manufacturing cotton goods. These companies have undergone a significant technological modernization. OnDonetsk Manufacture Mnew weave and finishing equipment was installed. New equipment manufacturing fabrics of 200 cm width and modern finishing equipment was put into operation on Don-Tex.

Timber Industry

Timber industry comprises following sectors: timber processing, woodworking, furniture production and pulp and paper industry. Timber processing and furniture production are the key sectors, producing 80% of the output of this industry.

The leading company in this sector is OJSC Volgodonsk Wood-Based Panels Plant. It produces 49% of the whole timber processing and furniture production. Its share in the furniture production is about 60%.  Modern facilities have the capacity of 5 million square meters of laminboards annually. Use of these laminboards in furniture production makes it more beautiful and comfortable. This plant applies new materials and technologies and sales its production to more than 50 Russian regions. It also in the process of negotiations with the German, Poland and CIS companies about entering these markets.