Manufacturers vie to set up aviation facilities in Ulyanovsk

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Russia's Ulyanovsk regional administration has received the first applications from companies interested in setting up operations in a new economic zone dedicated to hosting aviation companies.

The project is part of a scheme to form an industrial cluster on an area adjacent to Ulyanovsk-based airframer Aviastar and covering Ulyanovsk Vostochny Airport.

Speaking at a briefing, regional governor Sergei Morozov identified three initial residents of the zone, the territory of which will increase to 620ha from 120ha following a Rb1.2 billion ($40 million) infrastructure investment.

Volga-Dnepr Technik has applied to build a facility to maintain Boeing 747 freighters, and an Airbus Freighter Conversion workshop to convert A320s is also planned. An application has also been received for a plant to build de Havilland Canada Twin Otter 400 turboprops under license.

Morozov says that companies specialising in air transport activities have submitted more than 20 proposals, with the investment potential totalling Rb100 billion over the next three years.

"Residents based in the cluster will benefit from substantial tax breaks. Particularly important ones will be freed from a property tax and entitled to lower payments to regional budget," says Morozov.

Infrastructural development of the first phase of the special economic zone is to be completed next year, says the governor. He adds that construction work is also underway on a facility to manufacture composite materials and aerostructures to equip the proposed MS-21 twin-jet.