RUSSIA: Avtotor and Magna detail cooperation agreement
Russian carmaker Avtotor Holding Ltd. and Magna International have announced full details of a cooperation agreement in Kaliningrad, Russia, to establish an automotive manufacturing cluster. Avtotor and Magna executives were joined by Russian government officials for the official signing of the agreement.
For Avtotor, this agreement marks the beginning of establishing a 'full-cycle automobile manufacturing cluster' in the Kaliningrad region. Once complete, it says the project is expected to combine new vehicle production factories and several new joint ventures for automotive components production.
Magna says it anticipates up to six full-cycle vehicle assembly operations for different automakers and that up to 15 automotive components production plants will be set up in Kaliningrad. The automotive components facilities will produce parts for Avtotor's needs, and may also supply to other Russian automotive companies as well as export parts to other countries.
"Avtotor regards this project as a new effective model for cooperation between the participating international companies and automotive suppliers," said Vladimir Scherbakov, Chairman of Avtotor. "In addition, we hope to contribute to a more rapid growth of bilateral trade, investments and the creation of new jobs in the Kaliningrad region."
Magna will support Avtotor in the conceptual design and technical preparation of the automotive cluster and may possibly serve as partner for the localisation of the components production in the Kaliningrad region.
"Russia is an important automotive market with the potential to become the largest market in Europe," said Guenther Apfalter, President Magna Steyr. "We look forward to working together with Avtotor to support the establishment of the automotive cluster in Kaliningrad."
The final production capacity in the new cluster is expected to increase throughout several phases with the potential to reach up to 250,000 vehicles per year by 2018, with an annual product output expected of over 300 billion rubles (approximately US$10bn).
This QUBE report from just-auto provides a comprehensive overview of the global automotive mirrors sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this report...
This QUBE report from just-auto provides a comprehensive overview of the global automotive safety systems sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this...
The 2013 Goodwood Festival of Speed was held between 11-14 July inclusive, with many vehicles making their global debuts....
Magna International said its Cosma International operating unit was one of eight suppliers which received a BMW Supplier Innovation Award. It was recognised for a lightweight, high-voltage battery hou...
Magna International said on Friday sales of US$8.36bn for the first quarter ended 31 March, 2013, were up 9% year on year as vehicle production increased 1% in North America and fell 9% in Europe....
- ANALYSIS: Hyundai axes Veloster, goes after Toyota
- THE WEEK THAT WAS: Another year races by
- Review of 2014 (1)
- ANALYSIS: Future models for North America - Part 2
- ANALYSIS: Future models for North America - Part 1
- Punch Genk offer "missed opportunity": Mayor
- Pay deal lifts strike threat at Jaguar Land Rover
- Genk mayor organises "loudest shift" as Ford exits
- PSA UK announces new senior management structure
- Sales suspended as ruble crisis bites
- Hydrogen and Fuel Cells 2015-2025: Forecasts, Technologies, Markets
- Global light vehicle safety systems market- forecasts to 2029
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- Ford Motor Company - Strategy and SWOT Report
- Global automotive OE lighting market- forecasts to 2029