Zenden President Andrei Pavlov spoke about the support that the state provided to the company’s business in the construction of a shoe factory in Crimea.
In his speech at the conference of RBC FashionRetail 2016: trends, forecasts, and insights, Zenden President Andrei Pavlov spoke about the benefits that are currently being provided by the state for the development of shoe production.
According to the entrepreneur, the Russian Ministry of Industry and Trade today subsidizes a loan rate of 6%, and allocates funds to cover part of the cost of acquiring equipment. In addition, in the Crimea, where the Zenden manufacturing plant is being built, there is a free economic zone and the following benefits are provided: income tax is reduced to 2% and single social tax (UST) to 7%.
“You just think about the difference, usually the UST is equal to 30%, and here - only 7%, we get significant savings,” says Andrei Pavlov. - Finally, the company was able to offer workers in the production a normal salary. In addition, they told me that they will allocate another 8 hectares for the construction of the production cluster and have already allocated 200 million rubles to carry out communications for the new factory in Yevpatoriya. ”
As we wrote earlier Zenden, a Russian retailer and manufacturer of shoes, has begun construction of a multifunctional shoe factory with capacity of up to 1 million pairs of shoes per year in Yevpatoriya. The volume of investments in the construction and commissioning of the factory is more than 1 billion rubles. Completion of the first stage of construction is expected in November 2016. Commissioning of production is scheduled for the first half of 2017. The estimated payback period of the 9 project is years.