The Lipetsk SEZ, which is rightfully considered one of the best free economic sites both in Russia and Europe, has a new leader. Ivan Koshelev who was at the helm of the Lipetsk SEZ for seven years was replaced by Dmitry Dudarev, a former manager of the Central Black Earth Branch of PAO Sberbank. The Acting General Director of the Lipetsk SEZ gave an interview to Lilia Kareva who was the first person to learn how internal and foreign policies of the Lipetsk SEZ would change.
– Hello, Dmitry.
– Hello, Lilia.
– So, less than a month has passed since your appointment as the acting general director. As far as I know, you have never visited the Lipetsk SEZ before. What did you know about the SEZ before your appointment, and how has your opinion changed?
– Well, much less than a month, two weeks in fact.
– Yes.
– Before I joined the Lipetsk SEZ team, I just knew that such a zone exists.
– Sure, it does.
– It does. I paid my first visit to the Lipetsk SEZ about a month and a half ago. To be honest, I did not believe my eyes when I saw a concentration of global brands, such as Honeywell, VIESSMANN, Yokohama, Bettermann and a dozen of others that will take me much time to talk about – and all of them operating on a single site here in the Lipetsk Region, not in Europe or the USA.
– All these brands do not ring hollow for you, don’t they? You know the stakes.
– Yes, they are well-known global leaders. I think that the total equity of these global companies that are present in the Lipetsk SEZ exceeds USD 100 billion.
– Does this mean much to you as a financial expert?
– Yes, this is a hefty amount.
– Have you puzzled out how the Lipetsk SEZ has made such achievements?
– These results were achieved through concerted efforts of Ivan Koshelev’s team who was my predecessor. He put the team together, attracted investors and finally reached the present situation, which can be well described by the following proverb – get your name to rise early, and you may lie all day. And it is true. When new investors visit the site and see facilities built by their colleagues and partners, it is much easier for them to make a decision. What else do I want to say? It is a very tough decision for global companies to build a plant in a special economic zone. These are not hollow words. It takes a year, two and even up to five years until a large global company with headquarters in the USA or Europe finishes analyzing all pros and cons of various industrial parks, over 70 of which are located in Russia. They weigh up a number of parameters, such as technical conditions, expected costs, land price and preferences offered by local authorities in terms of handling administrative issues. This work is huge in terms of scope, and when it is completed, the customer makes a decision.
– And finally they say ‘yes’!
– And finally they say ‘yes’. Especially when they meet with their partners in Europe or America, who say that this particular special economic zone is great, the administration is really helpful, and it is nice to work here, it is much easier for the investors to say yes to the Lipetsk Region and its special economic zone, to say that this is exactly where we are going to work!
– So our main assets is the so-called ‘industrial word-of-mouth advertising’.
– In simple words it’s true, on the one hand. But huge work has already been done on the site to build engineering networks. The construction of roads and networks for gas, water, heat and power supply on the Lipetsk SEZ site near Gryazi is totally completed. It takes 3 to 5 days to obtain permits for the connection to networks. Those from the construction industry understand that the main problem is to obtain necessary permits.
– The same holds true for foundation of a new company.
– Yes, it does. It can take one, two or three years to obtain them. And you never know what it will cost. The Lipetsk SEZ tenants do not have to pay for permits and land plots. They can just come and start operating.
– What is your opinion of the Lipetsk SEZ team? Will you change anything?
– This is a highly skilled team that does a great job. It is competent in bringing new investors to the region. It is no less competent in developing the infrastructure. We provide technical supervision for the facilities being constructed by the tenants. It’s obvious that time will show, but I have no problems with the team.
– ОK. And if the Lipetsk SEZ operates so efficiently, will you change the development strategy? And what is your vision of its development?
– Yes, we will. In fact, the Lipetsk Region can be proud of two things – Novolipetsk Steel (NLMK) and the Lipetsk SEZ. Until now the Lipetsk SEZ has received much care as a pearl. It was developed and subsidized from federal and regional budgets. And it’s the SEZ’s turn to make its contribution.
– To the regional economy?
– Yes, to the regional economy. First of all, we have already held a number of meetings to discuss this topic. We need to create an effective mechanism of sharing tenant’s experience with students, current and potential employees...
– Entrepreneurs, company managers...
– Yes. In other words, to residents of the Lipetsk Region. We have a tour program for students. Almost every day the head office of the Lipetsk SEZ welcomes a bus full of students who enjoy a tour around the site. Presently we discuss an opportunity with the tenants to set up internship programs for students. Each plant has its own training premises and an HR manager who is looking for new employees. Since each production facility is unique and there are not many professionals on the job market, they offer on-the-job training in the Lipetsk SEZ. Thus, internship programs are a strong chance to show the students that the Lipetsk Region can produce really cool world-class products and that there are international companies offering a reasonable salary. I would like to note that the average salary in the Lipetsk SEZ is higher than the average salary in the Lipetsk Region. Besides, it is a good opportunity for students to see for themselves how global leaders work. It helps them to shape their mentality. I believe that these guys already realize what giants operate nearby, but if they have an opportunity to plunge into this atmosphere, their personal philosophy will change a lot. They will see employment opportunities and areas where they can use their knowledge. Many Lipetsk guys who join these companies achieve very good results.
– Their motivation will change, above all. They will realize why they study and what the benefits of knowledge are.
– Absolutely correct! They will be self-motivated. They will see that one must study not for honors, but to fit into the team that makes world-class products.
– It is good for them, isn’t it? And it brings certain benefits later, doesn’t it?
– Exactly.
– Last year was very fruitful for the Lipetsk SEZ in terms of acquiring new tenants. I think that you have set a Russian record in attracting investors. What is in store for this year?
– We are not going to slow down. This year, we have already signed agreements with two global companies – KWS and Syngenta – and are holding talks on other projects I will not disclose for now.
– To keep luck on your side?
– Yes, to keep luck, though this is a matter of confidentiality as well.
– I see. As far as I know, the companies pass through many different stages after signing the agreement. How many of them are ready to start construction? And how many will begin production this year?
– First, I would like to say that we plan to complete construction of at least three facilities this year. Chance Enterprise will put the now constructed factory into operation on the Yelets site. In September, Doka Lipetsk and Lipetsk Coffee Company will be ceremoniously opened on the Gryazi site.
– Are any other infrastructural project expected?
– Yes, they are. The site in Yelets is our priority for the moment. And a priority for the regional administration as well. We have constructed the necessary infrastructure by now, including roads, water supply, sewerage and electricity. Besides, Syngenta plans to start construction in Yelets this year. KWS will do the same next year.
– Back to the matter of human resources. Is it a vital problem today? What qualifications do you need and what examples of career success can you give?
– Shortage of employees is continuous since the world is changing very fast. You should never stop learning. Later this week I am going to meet one of Doka’s managers to discuss staff training. The manager said an interesting thing. The point is that Doka intends to install a production robot. In Lipetsk, the company found welders able to produce perfect seams with manual tools but unable to operate a robot. In the Austria-based head company, it is vice versa. Austrians are good at robotic welding rather than manual one. As a result, six welders from Lipetsk were sent to Austria to teach Austrian workers to weld manually and learn how to operate a robot in exchange. The tenants hiring local workers point out very good basic skills which are later improved through in-house and external training. Most employees are trained at the tenants’ headquarters abroad.
– Thank you, Dmitry. I wish you to find new investors as quickly as you have done before and maintain the wonderful team you have. Hopefully, the Lipetsk SEZ will keep hitting new records in Russia and Europe.
— Thank you. It surely will.
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