Essen Production AG Is Engaged in Negotiations on Establishing a Manufacturing and Storage Facility in Stabna Special Economic Zone

A large producer from Tatarstan Essen Production AG (that owns ‘Maheev’ trademark, ESSEN hypermarkets chain in the Republic of Tatarstan, confectionery business) is considering the possibility of establishing a manufacturing and storage facility within Stabna SEZ, which is currently under design in the Smolensk Region.

According to Leonid Baryshev, CEO of Essen Production AG, an available storage facility in the Smolensk Region will reduce costs for the export of finished goods to Europe and import of raw materials. He also considered the privileges granted to SEZ residents to be an additional advantage.

In addition, he added that Essen Production AG is going to review the proposals submitted by the producers of raw materials for confectioneries, including the ones received from the powder milk producers doing business in the Smolensk Region.

The special economic zone of industrial and production type will be established in the Smolensk Region based on the largest customs and logistics centre in Russia owned by Alfa Trans company. The site is in close proximity to the M1 Moscow-Minsk federal highway. The corresponding agreement on establishing the above-mentioned zone was signed by Governor of the Smolensk Region Alexey Ostrovsky and CEO of Alfa Trans Alians LLC Evgeniy Gitlin during the Russian Investment Forum 2019 held in Sochi. Nearly 300 hectares have been allocated for the SEZ establishment; the zone is to be side by side with the already existing Federal Customs Service checkpoint and next to the transport and logistics facility, which is the largest Russian hub for motor freight transportation.

An essential advantage of Stabna SEZ is the full customs cycle. In 2019 Smolensk E-Declaration Centre was recognized to be the largest similar organization in the Central Customs Directorate of the Federal Customs Service. The resident status will be granted to the companies that are going to locate here production of export-oriented goods and products made from imported components for their further promotion in Russia. The negotiations on SEZ residence are already underway with potential investors from the Baltic States, who have plans to establish production of construction materials from wood within the SEZ territory.