JAPAN: Partsmakers develop Russian business
Japanese autoparts manufacturers are entering Russia one after another, hoping to tap a new car market seen growing to roughly 3m vehicles a year.
The Nikkei business daily said the companies expect an increase in business now the Nissan-Renault alliance has decided to acquire Russia's leading automaker, AvtoVAZ.
Clutch producer Exedy has partnered with Russian partsmaker VazInterService, or VIS. Under the agreement, VIS will split off its clutch business and Exedy will invest RUB90m (US$3m, JPY260m), in the new company, gaining a 33% stake as a result. The joint venture will make clutches for new AvtoVAZ vehicles.
Hi-Lex will build a cable plant in the southern city of Tolyatti expected to start output in May 2015.
Sanoh Industrial has acquired the piping business of a local firm that has dealings with AvtoVAZ. It plans to construct a Tolyatti piping plant in 2014 with the aim of supplying parts for 1.5m vehicles a year, the Nikkei said.
Calsonic Kansei will begin assembling instrument panels and air conditioning units at an AvtoVAZ plant in 2013 or 2014. By leasing the facilities, it aims to keep investment costs down, the Nikkei noted.