JSC MTZ TRANSMASH: the incentives received will be used for technical re-equipment, for developing research and technical potential and for offering benefits to employees

JSC MTZ TRANSMASH develops and manufactures highly effective brake systems for railway and metro rolling stock; its products are compliant with international standards.

About the company

The company has a large stock of equipment, mostly NC machines tools, capable of performing any task from cutting and mechanical work to the most complex work in four- or five-dimensional coordinate systems. The company also has a “certified clean” electronic bench, where professionals produce electronic components; the company also has a laser technology bench, where high tech laser equipment is used for surface preparation, cutting, engraving, soldering and for other work with various materials.

Products

JSC MTZ TRANSMASH offers brake systems for railway and metro rolling stock. The company’s products, including those in development, are patented in Russia and internationally. Owing to the high technological level, quality and reliability of its products, MTZ TRANSMASH remains a recognised leader in the area of brake manufacture.

Government contracts

JSC MTZ TRANSMASH has traditionally supplied brake systems and their components for the rolling stock of the Moscow Metro. In 2016, the city plans to acquire comfortable ES2G Lastochka trains to service the new Small Ring of the Moscow railway. JSC MTZ TRANSMASH is participating in the project as the supplier of Russian-made brake systems, which will be used instead of brakes made by Western firms, in order to ensure maximum localisation of ES2G Lastochka train production in Russia. This is one of the best examples of successful import substitution in Russia’s railway sector.

Advantages of doing business in Moscow

Moscow is Russia’ financial centre, so most of our customers have headquarters in Moscow. Proximity to customers undoubtedly has a positive influence on our customer relations and it guarantees that various issues are speedily resolved. In addition, Moscow’s big labour market is a source of professionals in any area, with any level of competence, and that, in turn, allows the company to form its human resources pool and groom young professionals.

The Moscow City Government’s contribution to shaping convenient working conditions in Moscow is tremendous. Relevant departments offer JSC MTZ TRANSMASH any assistance the company might require. Moscow’s transport infrastructure should definitely be mentioned among the city’s advantages. Recently, the city’s roads have been drastically improved. A developed infrastructure is always a great plus for logistics and logistics planning, meaning savings of both time and money.

Support measures from the Moscow City Government

In the course of its regular close cooperation with the Moscow City Government, JSC MTZ TRANSMASH has received information on the comprehensive support for existing efficient enterprises. JSC MTZ TRANSMASH decided to apply for industrial complex status not only because of the incentives the status offers. The company needed a status that would confirm both the high esteem in which the Moscow City Government holds JSC MTZ TRANSMASH for its efficiency and the socioeconomic significance the company has for the city. At the same time, the Moscow City Government’s favourable assessment of the company has also been expressed in granting of certain incentives, such as reduced profit tax, property tax and land tax. JSC MTZ TRANSMASH will use the incentives received for technical re-equipment, for developing research and technical potential, and for offering benefits to employees.

Obtaining industrial complex status

While the company was filling in the paperwork and applying for the given status, the relevant departments of the Moscow City Governments assisted it in filling out and submitting the application. The assistance included seminars intended to explain in detail how to compile the application package and to submit it; the company received advice on taxation and the financial and economic component, and also on land plots and major construction sites. The application was submitted via Moscow’s Investment website.

Developing manufacturing in Moscow

JSC MTZ TRANSMASH’s subsequent development entails expanding its R&D. JSC MTZ TRANSMASH was offered comprehensive support by the Moscow City Government for developing its high tech manufacturing and research complex. In 2012 and 2014, urban development plans were approved, permitting construction and use of additional facilities. This expansion allows JSC MTZ TRANSMASH to develop its R&D potential further and to develop and introduce high tech production methods for manufacturing more innovative products of higher quality.

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