Russia's Avtocomponent and Spain's Ficosa plan to set up a joint venture in Nizhny Novgorod to produce component parts for foreign-brand cars manufactured in Russia, Valery Barulin, industry minister of the Nizhny Novgorod Region, told Prime-Tass news agency on Wednesday.

Nizhny Novgorod-based Avtocomponent and Ficosa signed a preliminary agreement today to establish the joint venture, as well as a licensing agreement to produce exterior mirrors at the Russian plant using Ficosa's technology, Andrei Ilyin, general director of Avtocomponent, told the news agency.

The companies are completing a business plan for the future joint venture and expect to determine the size of investments and the joint venture's production capacity within six months, Jose Pujol, chairman of Ficosa's executive committee, said. Potential customers of the joint venture are Russia's Avtoframos plant, Ford's plant in the Leningrad Region and Toyota and Volkswagen plants currently under construction in Russia.

The production of mirrors is expected to start in late 2007 or early 2008. The mirrors will be supplied to Avtoframos for its Renault Logan model, Ilyin was quoted as saying.

Avtocomponent has also signed an agreement to set up a component joint venture with Germany's Edak and is currently in talks on similar projects with three other unspecified companies, Oleg Zaitsev, Avtocomponent's director for strategic development, told Prime-Tass.

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