 REGIONAL
PRODUCTION FACILITIES |
The region is actively concentrating on developing
its production facilities. With a focus placed on
small to medium food and beverages facilities that
are able to provide the much-needed stable employment
opportunities for local people.
"Our main drawback was low population density
and lack of production in the Russian Far East.
Nevertheless, this process is being transformed."
Says Mr Gorchakov, Former
Chief of the Department of International Cooperation,
Regional Development and Investments of Primorsky
Krai Administration and now the newly appointed
Vice Governor for Foreign Affairs.
There are examples of however of production facilities
that not only take steps to secure employment in
the region but that also encourage the distribution
of Asian products in local and neighboring markets.
"There is a factory called "Rodina"
in Ussuriisk, which assembled "LG" refrigerators
and washing machines in the beginning and then started
assembling TV sets and computers using "LG"
parts. The finished products of "Rodina"
completely encouraged Korean products out on the
Russian market." Says Gorchakov.
Furthermore, local companies show signs of wanting
to break into external markets and work with foreign
partners. Among them is Lastochka
Voda, a new to medium sized player in the mineral
water industry, which is launching local products
and working with Italian and Korean partners.
"Our water "Lastochka" is distributed
throughout the Far East…and sold in Australia,
Korea and Japan," says General
Director Mr Kuznetsov.
Lastochka
Voda hopes to expand into the US market, and
Kuznetsov also
sees a market niche in South Korea, where the locals
prefer still mineral water to tap water. However,
the current production rate is too small, and the
company is seeking foreign investment to build a
second plant.
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A significant foreign investor within this market
is Coca Cola; know the world over, the company runs
the largest bottling plant in the Russian Far East
situated on the outskirts of Vladivostok. The company
describes the Far Eastern market as "very promising".
When the factory started production in 1995, residents
drank very little Coca Cola, whereas now the average
citizen drinks 40 servings per year. Looking at
the US per capita rate of 400 servings per year,
the company believes they have great prospects.
The Coca-Cola system has invested more than $750
million in Russia and $50 million into the Vladivostok
plant. At present CCVB (Coca Cola Vladivostok Bottler's)
is the fifth largest plant in Russia. "Our
plant gives 300 working places to Vladivostok and
the local neighborhood. We are part of the Primorye
economy community and one of the biggest taxpayer
in Russian Far East." Says Mr.Vladimir Mikhailov,
GM, Coca-Cola Vladivostok Bottlers
Smaller companies within the region such as "Primorskasoya"
represent food production, which is a local market
leader for producing Soya related products throughout
the Far East with product ranges that stretch as
far as Moscow. Vladivostok Fish Processing Plant
also well known in the province and recently won
8th prize in a contest for the best product of Primorsky
Krai in 2002, with cold smoked fish products and
other seafood specialties. Fish consumer related
items are very popular within a region that is famous
for its connections with the now struggling industry.
There are many examples of other significant production
units connected to the larger fishing companies
such as "Vostok 1" specialized in King
Crab products for international distribution and
"Nakhodka Base of Active Sea Fishing"
(BAMR) that specialize in their own internal production.
"We cover all south of Primorski Krai (Vladivostok,
Ussuriisk, Bolshoi Kamen, Partizansk) with our production.
There we produce smoked, salty, pickled fish, various
salads from sea kale and vegetables, in total we
have 42 local products." Says Mr.
Anatoly N Kolesnichenko, General Director of
BAMR.
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