Saint Petersburg keeps developing mechanical engineering
Saint Petersburg and the Leningrad Oblast have a huge growth potential. For 2017 the city administration expects the Gross Regional Product to grow for 3%. In the automotive industry an increase in production of 7% is expected. Yet things look differently, when it comes to mechanical engineering: The local cluster has a backlog and needs to be strengthened through resettlement of companies. That opens up a lot of investment opportunities for German manufacturers and suppliers.
The city administration tries to attract new investors. Growth potential is definitely there. In the first quarter of 2017 the industry production increased by 13% year-on-year and amounted to 521,2 million rubles (around 8,7 million dollars).
Two of the leading Russian enterprises specialized in energy plant construction are located in Saint Petersburg: REP-Holding and Silovie Maschiny (Power Systems). In Mai 2017 Silovie Maschiny founded a Joint Venture along with the German Linde AG to produce stainless steel heat exchangers for a liquefied natural gas plant. Silovie Maschiny also works together with "Siemens Gas Turbine Technologies" in Gorelovo near Saint Petersburg.
The local machine tool industry suffers a lot from a technological gap vis-à-vis foreign competitors. Majority of the machines have already clocked up more than 20 years of service and require an urgent modernization.
For Saint Petersburg and Leningrad Oblast the expansion of the regional industry-clusters has top priority. As of right now there are 11 cluster initiatives, the most important ones include car manufacturing, shipbuilding, mechanical engineering, pharmaceuticals and IT. The goal is to raise the competitiveness of the local industry. But for that Saint Petersburg also needs help of the foreign investors and plant manufacturers.