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Lipetsk, Russian Federation

Kazinka, 2006. A new industrial city based upon sustainable development (*)

by Giovanni Sergi

The Marche Region, within the framework of collaboration with the Ministry of Production Activities and Ministry of Foreign Affaire has implemented since 2002 a partnership with the Lipetsk Region, Russian Federation. The objective was to create the first Italian-Russian industrial district to catch both the opportunities of internationalization for small-medium enterprises from Marche and implement a model of sustainable local development for the Lipetsk Region.

The Lipetsk (Oblast) Region is located in the middle of European Russia where some of the main highways meet, 450 km south of Moscow. The population in 2005 was 1.200.000 inhabitants, 65% living in the urban area. In Lipetsk, capital city of the region, in 2005 lived 503.800 inhabitants.
In the city of Yelets in 2005 lived 117.000 inhabitants and besides important historical traditions, this city has a quite developed industrial system. The town of Gryazy in 2005 had 48.000 inhabitants and it is an important highway joint.

In 1931 in Lipetsk they started to build a very big siderurgical Kombinat, which is called Novolipetsk Metallurgical Complex NLMK and where in 2003 about 40.000 workers were employed. The still mills Svobodny Sokol Lipetsky are very important and produce high quality pipes. Moreover they are one of the oldest companies in the region.
Among the most important companies in Lipetsk, Indesit Company spa with headquarter in Fabriano, Italy, previously called Merloni Elettrodomestici. Indesity Company owns a fridge factory and also two new industrial plants that produce washing machines. In 2002 Merloni Elettrodomestici spa took over the fridge plant Stinol owned by NLMK and then started a development pathway during which the company built two more plants in the area (2004-2005), thus increasing its production volume.

In order to have a general idea of the path followed by Indesit Company, it is possible to divide it into three main phases of its expansion. The first phase is characterised by high production costs per unit and focused on the take over of Stinol.
The second phase is based on improving productivity and efficiency of Stinol, and during this time a second plant for washing machines was built.
The third phase is characterised by the opening of the last plant in October 2005 making this area the biggest production area of household appliances (the biggest sector in Europe) in the Russian Federation. It is organised for producing washing machines and has a capacity of 250,000 units covering an area of 50,000 square meters. It employs 200 people, besides 5,000 people already working in this productive area. During the inauguration ceremony the management announced the willingness to expand the industrial district in order to achieve an output capacity of 3,000,000 units.

According to the National Law "Special Economic Zones in the Russian Federation", in December 2005 the Russian Government has adopted the resolution n.782 through which the Government of the Russian Federation accepted the proposal presented by the Minister of Economic Development to create a Special Economic Zone in the District of Gryazy in the Lipetsk Region. The project concerning the Special Industrial Area "Kazinka" was presented in March 2006 to the Engineering Company Merloni Progetti spa which belongs to Indesit Company.
Merloni Progetti has played the role of Project Management and Main Contractor assigned by the Lipetsk Region. Two important Firms of Architects in Milan: the Firm Marco D'Azzo as Architectural Services Coordinator, the Firm Arassociati as Architectural Designer. The Lipetskgrasdanproject Institute in Lipetsk has took part in the different planning steps.

The area chosen by the Lipetsk Region is located between the urban area of Lipetsk in the Northern part and the urban area of Gryazy in the Southern part. The industrial area has a narrow shape and its length is 11 km. Its depth varies from some hundred meters in the Northern part to 3 km in the Southern part. It is expected to implement the project in two different phases from 2006 until 2012.
The criteria used for planning this big industrial area of 10 square kilometers, where it is expected that 12,000 people will work by 2012 are the following ones:

  • Keeping and improving the meaningful features of the area like the vegetation and water courses that are particulary important here.
  • Building an industrial city that can represent a model of sustainable development. This city must be able to meet the needs of the market in a rational and flexible way by integrating with the natural environment and with the existing infrastructures.
  • In order to meet these needs this big industrial area will be build in two phases. The first phase (2006-2008) foresees to cover an area of five kilometers and the plans for the second phase concern a wider expansion covering an area of six kilometers from 2008 until 2012.
  • Giving the area its own identity despite its considerable dimensions, thanks to clear boundaries. To achieve this result, in the North-Eastern part which covers an area of 11 km, it is planned to build a road along a water course, while in the South-Western part whose extension is 11 kilometers, the project foresees a new railway along an artificial hill where trees will be planted.
  • In the new industrial area many services will be at disposal to meet peoples' needs and interests and to guarantee a high level of autonomy and a strong future development.
  • The classification of roads, services and technological infrastructures for services will play an important role to ensure functionality and outline spaces.
  • The planning of public buildings will be very important because it will be possible to distinguish them on the basis of their shape and colours. In this way the project attempts to harmonise innovation and tradition.
  • The core comprising services that will be built in the first years of the SEZ in Kanzika will be a sort of "downtown" in this new industrial city. Of course it is necessary to add the first companies that have decided to build plants in the industrial lots as part of the first phase.

(*) It has been possible to prepare this report thanks to the information and documentation given by the Vice Presidency of Marche Region, by the Department for Economic Development of Marche Region, by the Lipetsk Region in the Russian Federation, by the management of Indesit Company in Lipetsk, by Indesit Company in Fabriano Italy, by Merloni Progetti in Milan (, by Studio Associato D'Azzo in Milan and Studio Arassociati in Milan.