Industry in the region started its development in the early XX Century. However, it had not been before the 60-70s that saw its fast progress. About the same time the structure of Stavropol Krai's industry was shaped, given the available natural resources, energy, railways and road networks. Mention to be made here of a great potential of manpower – the region was an agricultural one. The educational institutions (elementary, middle, and higher level) functioning then were training people to be further employed in the respective industries.

This was the period when a whole number of enterprises were launched offering a wide range of products – machinery, military & defense goods, chemicals. The largest manufacturers were auto-trailer plant, chemical factory, luminophor plant, "Signal", "Analog", "Neptune", Nevinnomyssky Azot", "Stavrolen", etc.

Stavropol Kari has always been famous for its agriculture yet this is not the only industry the region lives on.

Nowadays, the regional processing businesses account for 71% of all the products manufactured here. This is the concentration of 38.4% of the major industrial assets of our region. The mid-scale and larger enterprises employ about 54,000 people, which is over 10.0% of all those involved in the region's economy (small-scale businesses are not taken into account here). The processing industry offers over 70% of the exported goods. The taxes paid by the regional mid- and large-scale enterprises (monitored by Ministry for Energy, Industry, and Communication of Stavropol Krai) make up 11.0% of all the taxes paid by the regional companies to the Russian Federal budget. Share in the regional budget - – 16.3%. Gross Regional Product of the processing businesses in 2012 was around RUR 52 bln (12.1% in the GRP of Stavropol Krai).

The industrial complex of Stavropol Krai currently includes the following companies involved in:

Extracting;

Processing;

Production and distribution of energy resources.

Machinery and metal processing, chemical and oil-chemical production, electric accessories, furniture, glass, footwear, and textile manufactures are joined together into a single economic activity group of "processing businesses".

The enterprises of Stavropol Krai that have a significant share in the Russian market include:

JSC Monocrystall (appr. 60% of the market for artificial crystals in Russia);

JSC Concern Energomera (appr. 40% of the Russian market for power meters);

JSC Arnest (appr. 60% of the Russian market for sprays).

The companies belonging to the economic group of "chemical manufacture" account for more than 38.4% of all the products supplied to the market.

The machinery building enterprises of Stavropol Krai are those producing electronic, radio-electronic, electrotechnical goods, trailers, spare parts for cars, agricultural machines, metal goods, pipes and fittings, as well as a wide range of consumer goods (non-food).

The best developing enterprises are those of the electronic, radio-electronic, and electrotechnical group.

The enterprises of the Concern Energomera run projects for modernizing the production of artificial sapphires and goods made of them; power meters, as well as industrial and home electric appliances. This company is working in the developing markets of the "clean" technologies and is rated among the world leaders in synthetic sapphire and sapphire substrate production, also producing materials for solar power. One out of three LEDs and a quarter of all the elements in solar panels used in Germany were produced y the JSC Monocrystall.

The enterprises located in the region and manufacturing products for the military defense sector, supply certain parts and devices that are further used at other facilities to make various military equipment.

Some businesses operating in Stavropol Krai produce glass goods – glass sheet and glass containers. This production is successful due to the resources available here – quartz sand.

The priority objectives for industrial development include:

Support to modernization and development of processing businesses;

Stimulating establishment of newer advanced facilities in the processing industry.

The major measures aimed at modernizing and establishing new processing businesses include: developing industrial parks in the North Caucasus Federal District; development of newer financial tools and stimuli; public guarantees on loans.

The regional executive bodies conduct lots of activities to create conditions favorable for industrial development, including improving the respective regulations.

As early as in 2005 there was Law on Industrial Policy adopted for Stavropol Krai. There was also Strategy developed for Industrial Complex Development until 2020. The following aims were set in view of the priorities:

Enhanced competitive capacity of the regional industry;

Modernization and technological update of the existing facilities along with constructing new ones;

Increased volumes of deliverables produced;

Shift towards science-based innovation basis;

Increased share of local product substituting for similar imported goods;

Reduction of environmental damage when establishing new and modernizing the already functioning production facilities;

Increased investment attractiveness.

The major aims within the strategy also include increased competitive capacity for the regionally produced goods based on innovation, as well as development of a powerful R&D basis.

The most important sectors of the economy still remain chemical industry, glass manufacture, food production, electric equipment, electronic & optic, and pharmaceutical enterprises. These are the areas where the region enjoy serious competitive advantage.

The following areas for development have been selected: specially selected fields (modernization of the priority and most competitive areas of economic activity in the existing industries) and local industrial zones.

As for special fields for development, there has been serious work done on developing proper legal and economic conditions, and Stavropol Krai has a set of mechanisms for public support to investment agents, which implies:

Tax privilege to investment agents – on company income tax and company property tax;

Subsidy from the local regional budget to support those implementing investment projects in the region;

Budget investment in development and establishment of external engineering infrastructure required for investment projects;

Government guarantee to investors (on a selection basis).

There have been investment agreements concluded with the largest companies of Stavropol Krai:

LLC Stavrolen; JSC Nevinnomyssky Azot; JSC Arnest – public support in terms of privileged property and income tax.

Government of Stavropol Krai and LLC Stavrolen entered an agreement aiming at implementing the investment project on Establishing Facilities for Processing Natural Gas of Northern Caspian Sea into Ethylene, Polyethylene, and Polypropylene (1^st Stage). The project meets the terms of Cl. 1 – Modernization and Technological Update of processing businesses, introduction of energy- and resource-saving technologies, and 2 – manufacture of import-substituting and export-oriented product belonging to the priority areas of investment activity in Stavropol Krai for 2013, as approved by Decision of Stavropol Krai Parliament (of April 04, 2013; №769-V). The total budget of the project is RUR 8.7 bln. Number of jobs created – 25;

Government of Stavropol Krai and JSC Nevinnomyssky Azot entered an agreement aiming at implementing the investment project on Technical Update of Ammonia Production up to 1,980 tons per day. The project falls within the terms of Cl. 1 – Modernization and Technological Update of processing businesses, introduction of energy- and resource-saving technologies belonging to the priority areas of investment activity in Stavropol Krai for 2014, as approved by Decision of Stavropol Krai Parliament (of February 27, 2014; № 1233-V). The total budget of the project is RUR 3.1 bln. Number of new jobs – n/a.

Government of Stavropol Krai and JSC Nevinnomyssky Azot entered an agreement in order to implement the investment project on Technical Update of Weak Nitric Acid Production in Unit № 1, Workshop № 6 of JSC Nevinnomyssky Azot. The project falls within the terms of Cl. 1 – Modernization and Technological Update of processing businesses, introduction of energy- and resource-saving technologies belonging to the priority areas of investment activity in Stavropol Krai for 2014, as approved by Decision of Stavropol Krai Parliament (of February 27, 2014; № 1233-V). The total budget of the project is RUR 1.9 bln. Number of new jobs – n/a.

Government of Stavropol Krai and JSC Arnest entered an agreement in order to implement the investment project on Increased Production Capacity for Manufacturing Aluminum Containers Through Purchase of Advanced Equipment.

The project implies production of parts, filling, and packaging of product in spray and polymeric package; storage; shipping; delivery. The enterprise produces aluminum containers for sprays, caps, valves, spraying heads, while for polymeric products it produces containers and caps. The total budget of the project is RUR 540.1 mln. Implementation period – 2013-2014. Number of new jobs – 29.

Such public mechanisms for support resulted in capital flow coming into the region, and in the recent years only several larger investment projects have been implemented, while some of them are still underway.

JSC Nevinnomyssky Azot completed the construction and launched into operation the first in Russia unit for producing melamine (capacity – 50 tons per year). Investment – over RUR 10.5 bln, with 90 new jobs created.

In the July of 2013, an enterprise in Nevinnomyssk started production of aluminum slugs with an annual production capacity of 6,000 tons, while the enterprise is part of the National Aerosol Cluster, and this an a success story, which is due to positive cooperation with the North Caucasus Development Corporation.

A plant for producing construction dry mix (Henkel Bautechnik) was launched, which brought an investment of RUR 650 mln with 138 new jobs created.

Underway is the project on Expanded Processing of Phosphorous Stuff, which is being implemented by JSC Hydrometallurgical Plant (City of Lermontov) with a budget of RUR 2.4 bln.

JSC Stavropol Radioplant SIGNAL is involved in a number of p projects aiming at increased production for the military & defense industry.

LLC Car Manufacturing Company Stavropol-Auto has started building a car assembling facility with a capacity of 100,000 cars per year whereas the investment has exceeded RUR 6 bln, which is to provide 2,000 jobs.

Several companies are undergoing renovation thus trying to increase the production output: JSC Nevinnomyssky Azot (budget of the investment project – RUR 4822.8 mln); JSC Arnest (budget of the investment project – RUR 540 mln; number of jobs to be created – 29); JSC Monocrystall (budget of the investment project – RUR 3,100 mln; number of jobs to be created – 300), etc.

Another strategically important area of economy in the region is food and processing industry, which is to supply residents of Stavropol Krai with food products.

Subject to an agreement between Ministry of Agriculture of Russia and Government of Stavropol Krai the following increase was planned (for 2014): sunflower oil – by 9.5%; canned vegetables – 2.3 times; butter – by 27%; flour – by 29.0%. There are plans to start another investment project – meat-processing plant for butchering and primary treatment of meat in Mineralovodsky Rayon. The project is to yield a volume of meat production at around 100,000 tons per year (beef and lamb).