OREANDA-NEWS. March 4, 2008. Volgograd arms displays a gear and wheat in sheaves. Obviously, wheat does not grow on asphalt, and Volgograd develops many other industries apart of engineering.

This means that the symbols refer to the whole region, which is confirmed by statistical data: industry accounts for 40% of GRP and 60% of tax payments to all budgets. Last year of 2007 turned out to be not that bad for the industry: there was a slight (2.7%) growth in manufacturing production, which, in fact, determines regional industry accounting for 85% of the total industrial production.

In 2007, growth of industrial production in Russia was 3.6% on average. To those who love numbers and other readers who are not indifferent to the development of the domestic industry, we may state that the following branches account for the bulk of industrial production: oil products - more than 30%, metallurgy – 30%, production and distribution of electric power, gas and water – 8.6%, food production – more than 8%, chemical production - about 6%.

If we view achievements of each industry by average output, we will see a significant growth of 5.5% in metallurgy. Management and workers of Volgograd Plant of Small Diameter Pipes made great contribution to such positive dynamics – production output rocketed by 49%! Output at “Krasny Oktyabr” grew more than 1.5 times, especially stainless steel grades. Volzhsky pipe plant demonstrates 7% growth of pipe output. Yet, investors also contributed to the success: VPSDP and VPP are implementing investment programmes.

Volgograd Plant of Small Diameter Pipes (former VEST-MD) surprises economists by rapid growth of its performance indicators after its transferal to a new owner and the change of its name. Output of rubber and plastic articles also grew by 5.3%. Here, we should mention JSC Voltair-Prom which demonstrated a 27% increase in annual output of agricultural tyres. Voltair is also implementing an investment project. As statistical data shows, output of electric equipment, electronic and optical equipment is up by 21.3%. Regrettably, the success does not have much impact on total gross indicators: the share of the products is still minor in the regional industrial production structure.

A 6.6% growth rate in manufacturing of transport vehicles and equipment is also crucial, since it mainly relies on Volzhanin bus-making plant performance. In 2007, the plant produced 297 buses.

Average indicators show that regional chemical complex is making no headway, with production growth rates only amounting to 0.5%. However, there are positions which demonstrate some progress, but they are few in number: production of paint materials is up by 30.6%, synthetic resin – by 7.4%, chemical fibers and yarns – by 12.5%, technical carbon – by 5.1%. Such companies as JSC Kaustik and JSC Plastcard demonstrated positive dynamics of production output.

As 2007 industrial review executed by the committee for economy under the regional authorities shows, JSC Chimprom Volgograd raised its output by 3.5% in 2007, however, financial standing of the company remains unstable. Anyway, in 2007 the regional producers shipped products at the value of about RR325.9 bn by the following 3 sectors of industrial production: manufacturing production, mining, production and distribution of electric power, gas and water. At the same time, large and medium-size industrial enterprises suffered RR2.9 bn losses for 11M07, which is 30% more on a y-o-y basis. Well, we pray our industrialists not to give up and continue doing their best to support further growth of regional economy and budget in a view of better situation in the market and investment climate.