Obuv Rossii to Create New Footwear Production in Novosibirsk Region

09.06.18

Novosibirsk, 9 June 2018: Obuv Rossii Group, one of the leaders of the Russian footwear market, plans to open a new footwear production in the settlement of Linevo in Novosibirsk Region that got a status of the Priority Social and Economic Development Area in March 2018. The Group presented an investment project of a factory producing seamless footwear and footwear bottom parts made of polymer materials to the Council for Investments of Novosibirsk Region today. A new company (EvaLinK LLC) that is registered in Linevo has been created in the structure of the Group in order to implement the project. The Company plans to open the factory in the 3rd quarter of 2019, the enterprise will produce 1.1 million items per year at full production in 2023. The planned amount of investment will be 760 million rubles. The new factory will use the existing production capacities of the Company that are located in Novosibirsk and the well-established technologies.

Obuv Rossii can become the first resident of the Priority Social and Economic Development Area. "Linevo is well placed in terms of interaction with our main production in the neighbouring Berdsk, as a result we will obtain the cooperation of two enterprises. We deem that the status of the Priority Social and Economic Development Area is an important achievement of the regional authorities, that will allow us to attract new investors to the region. Our company wants as many players as possible to take part in the project of Priority Social and Economic Development Area, including those from light industry and related industries," comments Anton Titov, Director of Obuv Rossii Group.

Obuv Rossii plans to create a factory producing seamless footwear and footwear bottom parts made of polymer materials in Linevo. The company has already gotten an experience of production of polymer footwear, primarily of ethylene-vinyl acetate: an automated shop producing such footwear has been working in Novosibirsk since 2014. Obuv Rossii had developed and launched the production of such assortment as flip-flops and clogs fully made of EVA or of EVA combined with other materials; women's winter snow joggers and men's winter fully molded boots for hunters and fishers; and women's summer shoes;

The assortment of footwear will be expanded on the site in Linevo. Obuv Rossii's own retail chain, that includes over 580 stores now, will become the main sale channel for the new production; the company intends to increase it to 1,000 stores in three years. The potential sale markets for the factory also include the market of occupational footwear (Obuv Rossii is already cooperating with large food productions in manufacturing such footwear) and the market of footwear for hunting and fishing on which there is little national production of high quality.

The market of polymer footwear is promising. According to the estimates of Discovery Research Group, its volume in 2017 was 51.3 million pairs, with the growth being 21.4% in comparison with 2016. Nearly half the volume of this market is national production that is mainly represented in the South of Russia, in the North Caucasus and in the European part of the country. There are nearly no large productions of polymer footwear in Siberia and in the Russian Far East. According to the forecasts of DRG, the market will increase to 63.8 million pairs by 2020.

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