The Alchevsk Ferroalloy Plant “KHORS” will increase production by 15 percent as a Free Economic Zone (FEZ) resident, company director’s aide Mikhail Polevoy said.
KHORS which joined the FEZ on November 1 is implementing an investment project to upgrade and expand production capacities.
“We hope to carry out modernization according to Russian standards and create up to 15 new jobs,” Polevoy said. The company will purchase a bridge crane and two furnace transformers and install a ventilation system.
The LPR Industry and Trade Ministry spokesperson said that companies could count on government support measures including FEZ residence assistance and preferential loans from the Industry Development Fund.
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The Free Economic Zone law adopted in June sets a favorable business climate in the new Russian territories. FEZ companies are exempt from paying property tax a period of ten years and land tax for three years. They also enjoy lower insurance fee rates.
The Free Economic zone will function until January 31, 2050.*i*sb
