New kinds of equipment production, including aircraft, could be developed in the Russian city of Togliatti, home to troubled AvtoVAZ, Russia’s First Deputy Prime Minister Igor Shuvalov has said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Togliatti has huge potential…to set up new companies, new sectors and industries that have not been represented in Togliatti before,” Shuvalov said, according to Prime-Tass.
Workers dismissed from AvtoVAZ could take part in the creation of new companies, he said.
He also said that AvtoVAZ is expected to remove15,000 of its personnel from the core staff and employ them at newly established subsidiaries, AvtoVAZ Perspektiva and Reforming Tsentr, Russian business media has reported.
The new subsidiaries will be financed with federal budget funds, Shuvalov said.
One of the new subsidiaries will focus on modernising AvtoVAZ’ production of new Lada cars and Renault-Nissan vehicles. Pensioners and people of the pre-retirement age will be employed at this company, an AvtoVAZ representative told the daily. The other subsidiary will retrain people of working age for work at the new, modernized production lines, he said.
As of the beginning of November, AvtoVAZ had 94,000 employees, Prime-Tass reported.
The company’s President Igor Komarov said in mid-October that the company had 21,700 employees classified as excessive staff.
See also: EMERGING MARKETS ANALYSIS: Renault’s mighty task – fixing the Togliatti timewarp
