Avtocom has joined with Spain’s CIE and Doga to establish a manufacturing joint venture in Russia to produce car windscreen wiper/washer systems.
The JV, called Doga Avtocom CIE (DAC), will be located in the auto hub of Kaluga, already home to suppliers such as Continental, currently spending over EUR6m (US$8.6m) expanding its factory to produce engine control units as well as components for use in fuel supply and injection systems, and western automaker JV assembly plants for PSA Citroen, Mitsubishi and Peugeot plus Volkswagen and Volvo.
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Avtocom holds a 50% stake in the new wiper venture, while CIE, through its subsidiary CIE Automotive Nuevos Mercados, and Doga have each taken 25%.
Initial share capital is around EUR1m (US$ 137m). The overall project cost is estimated at EUR 10m.
DAC will also make other auto components, such as heater fans and climate control units, according to the Itar-TASS news agency.
Output is expected to be sold to Russian assembly plants operated by Volkswagen (which last year expanded its Kaluga plant from SKD to full-cycle CKD assembly, requiring more local components), Renault, General Motors, Mitsubishi, Fiat and Peugeot Citroen, as well as Russia’s GAZ group (which earlier this year signed a EUR 200m agreement to assemble a combined 110,000 Volkswagen and Škoda vehicles per year at a plant in Nizhny Novgorod), Sollers and bus manufacturers.
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