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The companies of Mordovia are actively involved in import substitution programs set up by the Russian Government. Several projects implemented in the republic are highly significant for the country.

Focus on innovations

Modern Russian companies try not only to substitute imported goods by Russian compatibles but also to set high-volume manufacturing of high-quality products that will be popular in European and Asian markets.

For the last several years Mordovia’s economy has grown by 26%. There were created 15 thousand new jobs, mostly in industry. The implementation of special republic and state programs results in three times increase in sales volume. The planned share of innovative products is 35%.

According to the Center of information and communication “Rating”, Mordovia has remarkable indicators of economic growth. Rosstat fixed 12.9% growth in the first half of 2017. More than that, the republic is in top 5 Russian regions considering the latest technologies application by industrial companies.

From 2011, the volume of industrial output in Mordovia has grown by 1.2 times. Today 93 percent of Mordovia’s industrial goods are produced in newly established enterprises or enterprises that have been modernized within the last ten years. In 2016 the share of innovative products was 28.3% from total production volume. This is the second result in Russia and the first among the regions of Volga Federal District. Over 100 large investment projects have been implemented in Mordovia for the last five years. The growth of gross regional product has reached 117%. The planned growth of gross regional product in 2017 is 103.6%, in 2018 – 104%.

There are several industrial clusters in Mordovia today. They are clusters for cable production, rail car building, construction materials production and energy efficient lighting engineering. A new cluster “Fiber optics and optoelectronics” has been established recently. It laid the foundation for the development of fiber optics instrument making, which is a new industry for Russia.

Return of a flagship

Mordovia’s oldest company of lighting industry Lisma has retrieved its position of the leading Russian manufacturer of light sources. The company’s goal is to take control over 25% of the lighting market in Russia.

For the last four years, production volumes have increased two times. In 2016 the products output was 10 billion rubles, which is 10% of the Russian market. Lisma is successful in gas-discharge light sources production with the best technical and economical characteristics. The company is a regional leader in import substitution.

Lisma is also a member of an industrial cluster of Mordovia “Lighting engineering and fiber optic instrument making”. In October 2016 the cluster has become a winner of the National contest. Thus, Mordovia entered the priority project “Development of innovative clusters – leaders of world-class investment attractiveness”. It is included in the register of Ministry of Industry and Trade of Russia as a priority region to receive financing.

In soviet times Saransk was called a “capital of light”. There are over 20 enterprises of lighting industry in Mordovia. Today every third lamp produced in Russia is produced in Saransk. And the goal is to produce every second.

In November 2016 Lisma has registered a joint company for light sources production in Burundi. The economic relationships with Czech Republic, Hungary, Iran and some other countries are enhancing.

From penicillin to generics

A major breakthrough was made in pharmaceutical industry, which is another traditional industry in Mordovia. Since April 2015, 1.5 billion rubles were invested in the development and modernization of Saransk plant Biokhimik.

In 2016 the Minister of Healthcare of the Russian Federation Veronika Skvortsova visited the plant and signed an agreement on establishment of Biokhimik-based pharmaceutical research and production engineering center “Antibiotiki” (Russian for antibiotics). The center is to become research and production base for advanced medicines.

By the end of 2017 Saransk plant Biokhimik will start the production of four latest antibiotics developed by its experts. It is the only project in Russian pharmaceutical industry with complete production cycle.

“This is our contribution to pharmaceutical safety of Russia”, Vladimir Volkov said. The project solves the problems of import substitution and reduces dependence on imported medicines.

Made in Saransk

Some projects implemented in Mordovia are unique for Russia. In autumn 2015 the first in Russia plant specialized in manufacturing of telecommunication optic fiber was launched in Saransk. During the visit to the republic, Deputy Prime Minister of the Russian Federation Arkady Dvorkovich pointed out that this event was anticipated not only by Mordovia but by the whole Russia.

Support provided to the project by the Russian president promoted its fast implementation and development of hi-tech engineering projects.

Another Saransk plant where unique for Russia products are manufactured is Helios Resource. This is the only manufacturer of multicrystalline silicon wafers for solar power in Russia. Over 850 million rubles have been invested in the project. The company is going to enter international market in 2018.

Saransk plant Leader-Compound was the first in Russia to launch the production of peroxide crosslinkable compounds for power cables

Railcars for Cuba

One of the leaders in railcar building in Russia Ruzhimmash operates in the town of Ruzaevka. The company is a member of RM Rail Company. There is a complete cycle of railcars production in Mordovia from casting to a wide range of freight rolling stock.

60 types of railcars are produced there. Special railcars for agriculture, construction, petrochemical and gas industries are under development.

This year the production volumes of Ruzhimmash have increased twice compared with 2016. By the end of the year there will be produced 4.5 thousand railcars. Cast production will increase more than twice and will run at 6 thousand car sets.

In 2016 RM Rail significantly moved forward. The company received a contract for design and development of three new railcars for Cuba as well as production and delivery of the freight rolling stock for the country.

The most important import substitution project of Ruzhimmash was design, development and production of freight rail cars for molten sulphur and pitch transportation. By now the project has received approval from the Expert Council of Industrial Development Fund. It will be implemented after receiving financing.

Export has grown 2.5 times

Industry of Mordovia is working on constant increase in export. Ruzhimmash sells the railcars to Cuba and Iran. Plyterra exports over 75% of its products. Total volume of Biokhimik’s export exceeded 134 million rubles in 2016. Metallurgy company MK MBC has contracts of delivery with the companies from Hong Kong, Switzerland and Cyprus for almost 3.5 million USD (over 50% of total volume). Opticenergo Group cooperates with Serbia and Georgia. Electrovypryamitel exports its products to 53 countries every year.

In 2016 the products manufactured in Mordovia were supplied to 60 countries all over the world. For three years export volume has grown almost 2.5 times from four to ten billion rubles. For the next 5 years this indicator will increase more than three times.

Original text was prepared by Alina Romanova for rg.ru and is available by https://rg.ru/2017/09/07/reg-pfo/mordoviia-predlozhila-malym-predpriiatiiam-vyjti-na-mirovoj-rynok.html