OREANDA-NEWS. The Expert Council of the Ministry of Economic Development of the Russian Federation approved the investment project of set-up of aircraft application titanium alloy die forgings machining in SEZ “Titanium Valley”.

For the purpose of establishing new high-tech center for die forging machining and manufacture of finished parts from flat-rolled products, VSMPO-AVISMA Corporation set up VSMPO - New Technologies, LLC. The enterprise is to be located in the Special Economic Zone. The following products are supposed to be manufactured (as rough-machined and semi-finished products): airframe body components; wing structure components, including wing lift device components; landing gear parts; pylon structure components.

Mikhail Voevodin, Chief Executive Officer, VSMPO-AVISMA Corporation:

"Today VSMPO-AVISMA Corporation is the world's leading Ti manufacturer engaged in machining. However, by 2017 our machining capacities will not be sufficient to meet the production schedules. In order to increase the existing capacities by 50 percent, the decision was made regarding establishing the supplemental machining center. The scheduled volume of investments in this project is over USD 70 mln. The decision on new production setup exactly in the SEZ “Titanium Valley” was made by two criteria: economic feasibility and proximity to VSMPO".

Artemiy Kyzlasov, General Director, SEZ “Titanium Valley”: "Implementation of joint projects with VSMPO-AVISMA Corporation is a partnership of strategic importance for us. “Titanium Valley” is being developed as a purpose-designed special economic zone. And titanium products manufacture is one of the priority directions of the production site development. It is critically important for us that the preferences and capabilities of the special economic zone give additional incentive to production development, and make it possible not only to realize the technologically and economically attractive project, but eventually to strengthen the position of Russia on the global titanium market".

Defense of the investment project is the necessary stage for subsequent conclusion of agreement on carrying out activities in the SEZ territory, between the potential investor and the Ministry of Economic Development of the Russian Federation and SEZ “Titanium Valley”.

It should be noted that initially the project of VSMPO - New Technologies, LLC was approved by the Expert Council of the Ministry of Economic Development of the Russian Federation in 2011, however acquisition of the official resident status was adjourned until the start-up of the SEZ infrastructure construction. In the investment project for 2013, the demands of the enterprise are revised with account taken of the advanced development plans, and technical parameters of the future production are specified.

The Expert Council for Industrial Production Special Economic Zones under the chairmanship of O.G. Savelyev, Deputy Minister of Economic Development of the Russian Federation took place on December 17, 2013.