ThyssenKrupp to Establish Logistics Center in Siberian Altai Region

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Apr. 20 – German’s ThyssenKrupp Elevator representatives held talks on cooperation with the Siberian Altai region authorities, local media reports. At the meeting, the possibility of establishing a logistics center for the assembly of elevator equipment in the region has been discussed.

“About 150,000 elevators have to be changed in Russia within the period of 5 to 10 years. It means that the new logistics center will comprise the benefit of long-term demand,” Marcus Vartinger, Managing Director of ThyssenKrupp Elevator said at the meeting.

Along with the elevator equipment assembly logistics center, ThyssenKrupp plans to establish a trade house and after sales service, which will provide service not only to Altai, but to other Siberian regions.

Vartinger announced the company’s intention to establish a working group with the provision of technical specifications for the selection of investment areas and enterprises, which will be posted on the production.

Berlin-based Landesbank articulated its interest to invest in the project on condition of state guarantee.

The Altai logistics center, which might be set on operation in 2013, will become the very first among five other companies considering establishment in Russia in the near future.

According to Marcus Vartinger, Altai was chosen due to its geographic location almost in the center of the country and well-developed industry and infrastructure.

There are more than 2,000 industrial enterprises functioning in the Altai region. About 347 of them are large and medium sized enterprises.

More than 20 percent of all the regional industrial production is contributed by industrial mechanical engineering, and one-third is in agricultural mechanical engineering.

Local enterprises involved in this industry manufacture various types of tractors, boilers and engines applied in agricultural, construction, oil and gas, and ship-building industries.

As the largest agricultural region of Russia, Altai is very famous for its cereal products.

The Altai region exports a seventh its meat products to other regions, 70 percent of its cheese and flour, almost a third of its butter, 85 percent of its groats, and 60 percent of its macaroni products annually.

Based on March 2011 results, the volume of flour shipped by local PAVA enterprise to its foreign partners in Turkmenistan, Kyrgyzstan, Afghanistan, Ethiopia, Somalia, Kenya, Bangladesh, Thailand and Mongolia exceeded four tons of flour.

The region is also exporting aluminum, coking coal and fern to Japan. The local customs office data says, for the first quarter of 2011 it has exported aluminum amounted to US$2.3 million, which is twice the amount of the same period of last year.

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