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Making up for Missed Opportunity: Italy Prepares for INNOPROM-2018

05 March 2018
Making up for Missed Opportunity: Italy Prepares for INNOPROM-2018

National Stand

Italy, a Russia's major partner in the European Union, started its preparations for the upcoming International Industrial Trade Fair INNOPROM-2018. Italian participants will make one of the largest EU delegations: in 2017, representatives of 19 top industrial companies attended the exhibition. Processing equipment and components manufacturers and representatives of federal agencies and industrial associations paid a visit to Ekaterinburg. The Italian national stand featured the following companies: equipment producer Colgar International SRL, machinery manufacturer MB Crusher, automation equipment maker Diamec Technology SRL, etc.

The Moscow Office of the ICE (Agency for the Development and Promotion of Italian Business Abroad) hopes that the number of organizations participating in INNOPROM will increase in 2018. INNOPROM preparations constitute a collaborative effort on the part of the ICE and the Italian Machine Tool, Robots, Automation Systems and Ancillary Products Manufacturers' Association (UCIMU-SISTEMI PER PRODURRE), which incorporates companies specializing in the production of CNC, tools, components, and accessories. The Association already presented Italy's industrial products at the INNOPROM-2017 national stand.

 

"We perceive INNOPROM-2018 as an efficient opportunity for showcasing our technologies. Italian companies are actively working in digital manufacturing and additive technologies which are implemented worldwide. We believe that productive business communication between Russian and Italian experts will further the development of the Russian industry, and INNOPROM-2018 is one of the most efficient communication sites,"

Pier Paolo Celeste, Director of the Moscow Representative Office of ICE Agency, emphasized.


 


Italian and Russian representatives have already held a series of talks about further cooperation at INNOPROM. For example, Italian equipment manufacturer CMS and Special Economic Zone Titanium Valley signed a letter of intent at INNOPROM-2017. The European company is considering the localization of its production at the SEZ.

Several projects announced at previous exhibitions were successfully implemented. For example, at INNOPROM-2011 Italian energy company Enel and the Government of Sverdlovsk Region agreed to cooperate on environment protection. By upgrading power generation units at one of its facilities, Enel managed to reduce emissions and boost efficiency.

In 2016, Moscow Region Development Corporation and the General Confederation of Italian Industry (Confindustria) signed a cooperation agreement on the exchange of information, consulting support, and referral of reliable partners. The agreement remains in effect until 2022.

Loss Recovery

The upcoming visit of the Italian delegation is not the only reason to be optimistic. In 2017, trade turnover between the two countries increased for the first time in the past several years. While 2013 reported record turnover numbers at $53.9bn, in 2014-16 with the introduction of economic sanctions the number dropped from $48bn to $19.8bn. 2017 marked the year of recovery with the turnover growing by 20.8% to $24bn.

 

"In spite of notorious issues related to the sanctions regime, contacts between Russian and Italian entrepreneurs are developing quite successfully. Moreover, after a three-year decline, trade turnover between Russia and Italy exhibited positive dynamics in 2017,"

Dmitry Kurochkin, Vice-President of the Chamber of Commerce and Industry of the Russian Federation and Co-Chair of the Russian-Italian Committee of Entrepreneurs, stated.


 


In 2017, Italy moved from the sixth to the fifth spot on the list of Russia's trade partners, according to the Federal Customs Service. Still, Italian corporate representatives believe that we have a lot of catching up to do and plenty of opportunities to make up for.

 

"There is still a long way to go before we recover losses incurred over the past years due to the recession in trade and economic ties between Russia and Italy. Nevertheless, we managed to reverse the trend and create multiple opportunities for corporate bilateral cooperation. The Italian business is undertaking major efforts seeking to reclaim its share in the Russian market,"

Antonio Fallico, Chairman of the Board at Bank Intesa and President of Conoscere Eurasia (Getting to Know Eurasia) Association, commented.


 


 

In January-November 2017, Russian companies predominantly exported energy and mineral products (86% of total sales). Italy's most prominent sales areas included machinery, equipment, and transport vehicles (45.6% of total sales), chemical products (20.6%), and textiles and footwear (9.6%).

Ceramics and Packaging

Currently, more than 500 Italian enterprises are working in Russia, and roughly 100 of them have their own production facilities there. According to the Italian-Russian Chamber of Commerce (IRCC) press service, all major Italian investors, such as energy company Enel, oil and gas company Eni, and manufacturer of metal processing equipment Danieli, are working in the Russian economy.

In 2017, new Italian industrial projects came to Russia, and Italian companies opened several production sites. For example, two enterprises commenced their operations in the Kaluga Region. Serbian-Italian Palladio Zannini launched the production of packaging for pharmaceutical and cosmetic goods. Investment into Palladio BNM project exceeded EUR 10mln and is expected to amount to 17 mln. By opening their facilities, European companies seek to expand their presence in the Russian market.

Italian Laminam invested EUR 25mln into its first Russian plant for the production of large ceramic slabs at the Kaluga Region industrial park. Annual output will constitute 1 mln sq.m. of slabs per annum, and the company intends to expand its operations in the future.

 

"This project provides a vivid example of mutually beneficial cooperation and trust between Russia and Italy,"

Ismail Akhmetov, co-owner of ООО “Laminam Rus,” shared.

 


 

ZOPPAS INDUSTRIES concern built its first Russian plant in the Vladimir Region last year. The concern invested approximately RUB 600 mln. The facility will manufacture heating elements for washing machines, coffee makers, and electric ranges. In the future, the plant might start producing equipment for the Russian Railways and aircraft and spacecraft manufacturers.

Localization Emphasis

Several promising export areas have been developed for Russian companies. Experts representing the Chamber of Commerce and Industry of the Russian Federation (CCI RF) believe that the Italian market might be interested in importing wood processing products and equipment for aircraft and space modules.

 

"Italy is interested in our innovative energy projects in nano- and biotechnologies. We need to shift from importing goods labeled "Made in Italy" to deeper production cooperation under the Fatto con Italia (Made with Italy) slogan targeting the localization of Italian production in Russia," CCI RF points out.

 

Both Russian and Italian entrepreneurs are interested in expanding bilateral cooperation. At the upcoming INNOPROM, corporate representatives will have an opportunity to present promising projects and discuss new areas of cooperation. During exhibition operations, INNOPROM will provide venues for establishing new contacts and holding business meetings. We would like to invite you to participate in the exhibition and upcoming events.

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