Modernization of an innovative industrial product line in Kuban is being backed by state funds
The Krasnodar Region in Russia is pushing forward with its Import Substitution program, a drive to support local industries and foster technological advancements. Established three years ago by Vladimir Kondratyev, the program is now operational with 13 subsidized loan financing programs in operation. Nine of these are independently managed by the regional fund, while four have federal participation.
One of the beneficiaries of this program is the Southern Heavy Machine Tool Plant, which received a loan from the Krasnodar Territory Industrial Development Fund. The financial support has enabled the plant to create and launch innovative, high-tech processing centers with numerical program control, operating in five-axis mode. This investment has allowed the plant to move away from imported machinery, a significant step towards self-sufficiency.
Dmitry Khmeľko, the regional minister of industrial policy, noted the absence of analogs of Krasnodar's machines in Russia. The loan for the Southern Heavy Machine Tool Plant was for updating the section for processing details of five-axis machines.
Two more producers, "YuzhFarm" from the Krymsky District and "RENARD" from the Leningradsky District, have also received financing. "YuzhFarm", a pharmaceutical enterprise, will use the funds to acquire necessary raw materials and update its equipment, while "RENARD", a cheese and cheese product producer, plans to modernize its white-brined cheese production with the borrowed funds.
The "Import Substitution" program offers an annual interest rate of just 0.1 percent, making it an attractive option for local industries looking to modernize and grow. This low-interest rate, coupled with the potential for significant financial support, has the potential to drive industrial growth in the Krasnodar Region.
Since its establishment in 2018, the Krasnodar Region's Guarantee Fund has provided 360 subsidized loans totaling over 11.3 billion rubles. This support is aimed at enhancing local industrial production capabilities, reducing dependency on foreign technology and machinery, promoting technological innovation within regional enterprises, and contributing to economic stability and growth within the Krasnodar Region.
President Vladimir Putin's directive to prioritize promising projects with an emphasis on innovation and indigenous production platforms aligns with this approach. The strategic importance of such programs in post-2024 Russia’s economy is underscored by President Putin's emphasis on the need for Russia to build its own technological and productive infrastructure.
For those interested in learning more about the Krasnodar Region's Guarantee Fund and its support, consultations can be arranged by calling 7 (800) 500-27-28 or by following this link.
[1] Source: TASS News Agency, April 15, 2021.
- The Southern Heavy Machine Tool Plant, with financial assistance from the Krasnodar Territory Industrial Development Fund, is utilizing the funds to modernize its machinery, moving away from imported equipment, as part of the Krasnodar Region's Import Substitution program focused on local industries.
- The aerospace sector might also benefit from the Krasnodar Region's initiatives, considering the program's emphasis on technological advancements, as highlighted by the success of the machine tool plant and other sectors, such as pharmaceuticals and agriculture.