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Togliatti is ofter spoken about as a city that was born thrice. In fact, it is true. Stavropol town was laid down in 1737 by Tatishev V.N.-a subordinate of the Russian tsar Peter the Great, as a fortress to protect Russian frontier territories from nomad tribes raids.
Later, in 1950 a small provincial town grew into an industrial city with the start of construction of the Volga hydro electrical power station. Soon after the station was put into operation the man made sea covered a sufficient territory of the town so it was removed to other location up the left bank to protect the town from the flood.
In 1964 Stavropol was renamed in Togliatti, and in 1967 the construction of AVTOVAZ - the largest in Russia automotive plant started.
Nowadays, Togliatti is a large, vibrant, industrial center in the Central Volga region of Russia with the population of about 750 thousands. The average age of the city resident is 34 years.
Administratively, Togliatti is incd in Samara region (Samara oblast). By the end of 90s the industrial output amounted to USD 3,8 bln., which is 55,5% of the overall industrial output of the Samara region and 1,9% of GNP.
AVTOVAZ Inc. is a core industrial enterprise in Togliatti. Transportation facilities that ensures production at AVTOVAZ inc automotive, railway, electrical and water transport.
Outbound/inbound transportation is provided by two railway terminals (cargo and passenger), Volga river harbour capable of hosting large marine vessels, and Kurumotch international airport that provides travellers with regular charter flights to Austria, Bulgaria, Israel, China, UAE, Turkey, Check Republic. Since 1996 Lufthansa company has been offering regular flights Samara - Frankfurt -Samara.
Customs clearance is made at Togliatti customs, the area of coverage incs several regions in Samara oblast, Togliatti and Zhigulevsk town. There are consignment warehouses in Togliatti.
The mainstream of international activities in Togliatti is indicated in setting up joint ventures with foreign partners registered in the USA, Cyprus, Finland, Poland, Netherlands, Slovenia, Slovakia, Singapore, Germany and many more. Amongst them are PricewaterhouseCoopers (PWC), DHL, Burda Modern, Danon, VolksWagen, EsteLauder. In 2001, GM/AVTOVAZ JV was set up and by the end of September 2002 a new full drive vehicle Chevi Niva - a new joint project of AVTOVAZ and General Motors Corporation will see the light.
Table 1. Production structure
| Industry sector |
Market share |
| Engineering production |
80,7% |
| Chemical and petrochemical production |
15,9% |
| Food production |
1,8% |
| Energy production |
0,8% |
| Construction materials production |
0,4% |
| Flour, cereal, protein and vitamin admixtures production |
0,2% |
| Other industries |
0,2% |
Today, Togliatti is known as a center for car production, manufacturing of synthetic rubber, phosphor and nitrogen fertilizers, equipment for cement production, electrical transformers, and highly efficient civil construction industry.
The national leader in automotive production AVTOVAZ is located in Togliatti. In addition to AVTOVAZ there are large plants and enterprises that are efficient in consumer goods production, such as footwear, knitting, sparkling wines, cognacs and soft drinks, meet, bakery, seafood and diary products, and many more. Owing to well-developed business infrastructure, Togliatti has become a leading regional business center. By the end of 2000, 3,2 thousand businesses in various lines were registered in Togliatti.
Communication facilities are provided by 18 automatic telephone systems including 2 satellite digital operators. Largest banking and industrial institutions are equipped with most efficient communication facilities: satellite uplink connections and fiber-optic transmission systems.
Workforce employed in industry and production - 350 thousand (47,4% of the overall population). Unemployment rate is registered at 0,9% of the overall population.
Table 2.Labor market share in every industrial sector
| Industry sector |
Labor market
share % |
| Engineering production |
45,8% |
| Agriculture |
0,38% |
| Transportation and communication |
7,99% |
| Civil construction |
8,2% |
| Commerce |
10,36% |
| Other production |
1,7% |
| Banking and insurance services |
1,04% |
| Utility and personal services |
4,5% |
| Healthcare and sports |
6,29% |
| Education |
8,14% |
| Culture and arts |
0,84% |
| Community organizations |
0,35% |
| Scientific research |
0,38% |
| Social services |
3,98% |
Industrial and financial stat data
In 2001, an industrial production output and services rendered by large and middle size enterprises amounted to USD 3,8 bln., that is a 32% increase comparing to the same period of 2000.Comparing to respective period of 2000 fiscal year industrial output has grown by 32%.
The industrial output growth owes to increase in production in engineering industry by 10,1%, including automotive by 9,7%, and in construction materials production by 15,8%.
Table 3. Industrial output in 2001 (large and medium scale enterprises)
| | Industrial output USD mln. | Monthly growth rate (%) |
| Jan. | 284,8 | 158 |
| Feb. | 289,6 | 138 |
| March | 332,8 | 138 |
| Apr. | 319,9 | 139 |
| May | 316,6 | 139 |
| June | 313,2 | 127 |
| July | 332,3 | 128 |
| Aug. | 344,4 | 126 |
| Sept. | 330,1 | 124 |
| Oct. | 366,7 | 130 |
| Nov. | 337,4 | 121 |
| Dec. | 328,5 | 123 |
| 2001 year | 3894,9 | 132 |
During 2001 fiscal year business cycle movement shown evident stability with 1,6 and up to 14,6% monthly increase, comparing to respective period of the previous year.
Table 4. City industrial growth - comparative analysis.
| | Russian Fed. | Samara region | City of Togliatti | Leading indic. over national growth |
| Jan | 15,3 | 111,4 | 114,6 | 9,3 |
| Jan-Feb | 13,1 | 18,5 | 18,4 | 5,3 |
| Jan-Mar | 13,3 | 17,7 | 18 | 4,7 |
| Jan-Apr | 13,8 | 18,6 | 18,2 | 4,4 |
| Jan-May | 15,9 | 18,5 | 19,7 | 3,8 |
| Jan-Jun | 15,5 | 18 | 17,8 | 2,3 |
| Jan-Jul | 15,4 | 17,9 | 17,1 | 1,7 |
| Jan-Aug | 5,3 | 7,6 | 7,4 | 2,1 |
| Jan-Sep | 5,2 | 7,6 | 7,1 | 1,9 |
| Jan-Oct | | 77,8 | 88,1 | |
| Jan-Nov | | 77,5 | 88,1 | |
| Jan-Dec | | 77,7 | 88,6 | |
Despite of negative consequences that followed the economic turmoil of August 1998 e.g. national currency devaluation, the industrial output was in steady growth and at the end of 2001 (8,6% higher comparing with the previous year).
Engineering Industry
In 2001 fiscal year, city engineering industry output amounted to USD 3,31 bln., which is 85,0% of the city industrial output including 73,7% of AVTOVAZ Inc.
The automotive production has increased by 9,7%, namely: trucks by 9,2%, passenger cars - 8,9%. In other engineering manufacturing fields: electrical transformers - by 20,6%, chemical production equipment and spare parts - by 115,3%.
Construction materials production
During 2001, construction materials manufactures produced goods for the amount of USD 15,11 mln., which is a 45% growth comparing to the respective period of the previous year. Construction materials industry quantum index, in average, amounted to 115,8%.
Also, there is a growth in construction brick manufacturing (by 10%), wall panels (by 11,4%), steel reinforced concrete fabricated structures production remained at the previous year's level.
Light industry
City light industry businesses 2001 annual output was USD 4,23 mln., that is 40 % higher than of the previous year. "Togliatti trikotazh Ltd." (hosiery) indicated a sharp growth in production (5,7 times growth), at the same time footwear production at "Leader Inc." dropped by 17,4%.
Food manufacturing industry
City food manufacturing enterprises produced goods for USD 57,3 mln. in 2001. The industry indicated a slowdown and production output slimmed down by 8,8%. Meat foods production in 2001 was 39,7% less than the 2000 output, and 39,7% less in beer, and 9,8% in wine distillation. At the same time, cheese production increased by 31,6%, dairy products by 5,0%, bakery - by 6,0%, confectionaries - by 46,0%, brandy - by 15,4%. The flour and cereal production dropped down by 20,4%. In feed mill industry there was a 3,5% growth in protein and vitamin admixtures.
Financial indicators
Within the period of January-February, 2001 the revenue of Togliatti businesses amounted to USD 0,4 bln. At the same time 18 city enterprises were in a loss. Accounts receivable increased by USD 6667, and by 1.01.2002 amounted to USD 0,59 bln., accounts payable decreased by USD 0,12 bln., and by 1.01.2002 amounted to USD 1,17 bln.
The Russian Federal Agency for Bankruptcy performed financial analysis of 170 city enterprises, namely: screened regular financial reports, external (federal, regional and municipal budget) payments position, other compulsory allocations and due payments. As the result of such financial investigation, debt companies settled their debts for the amount USD 16.23 mln., including - USD 2,15 mln. to municipal budget, USD 2,25 mln. to regional budget - USD 7,82 mln. to federal budget. For 13 enterprises company assets extraneous management and enforced corporal restructuring procedure was applied, including such debt companies as "Povolzhskoje Inc.", "Promarmatura Inc.", "Leader Co.".
Workforce at large and medium size city enterprises in December 2001 was 171,2 thousand. (6,7 % growth, comparing to the respective period of the previous year) among them "AVTOVAZ Inc." (5,5 % growth), "VolgaCemMarsh Inc." (17,5 % growth), "TogliattiKauchuk Ltd." (60,1 % growth), "TZTO Inc." (30,9 % growth), "Transformer Inc." ( íà 22,2 %).
Average wages in industry in 2001 ãîäà amounted to USD 183,3 (27,8 % growth, comparing to the respective period of the previous year).
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