Russia’s RM Systems has signed an agreement with Japan’s T. RAD to build a $US30m plant in the Russian city of Nizhny Novgorod to produce vehicle radiators and heat exchangers, the Russian company said.

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RM Systems and T. RAD Co. are expected to control the plant, opening in early 2009 on a 50-50 basis, according to a Prime-Tass news agency report.


The facility is expected to produce about 600,000 units per year during the first stage. Sales are projected between $30m and $35m.


During the first stage, the facility is expected to supply Russian automaker GAZ but later will expand to other automakers in Russia, both domestic and foreign.


RM Systems is a wholly owned subsidiary of Russian Machines, which is controlled by Basic Element group.

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T. RAD manufactures heat exchangers for vehicle, construction machines, air conditioners and industrial machines.