27/12/2010

Volvo could invest 150 million Euro more in Kaluga plant

Company Volvo is ready to invest in addition 150 million Euro in the plant “Volvo Vostok” in Kaluga region. The general manager Volvo Group Russia, Lars Kornelusson, informed about it during the meeting about the strategy realization of car industry development in Russia till 2020. By his words, the concern is ready to invest in the construction of the second turn and in organization of cabin production 150 million Euro in addition to 100 million Euro that were invested earlier.

Mr. Kornelusson and the governor of Kaluga region, Anatolii Artamonov asked the Prime Minister, Vladimir Putin, to keep the previous conditions of assembly regime for the trucks makers that provide 25 thousand vehicles a year, as the strategy of car industry development presumes the annual production of 170 thousand trucks by 2020.

It should be recalled that Volvo Group plant in Kaluga started the work in January 2009 and the plant switched to the full-scale assembly of Volvo trucks in May. The production of Renault Trucks was also started at the plant in April 2010. The capacity of “Volvo Trucks” is rated at the production of 15 thousand vehicles (10 thousand Volvo Trucks and 5 thousand – Renault Trucks).

АВТОСТАТ

30/10/2010

New Magna plant to step into Russian car component gap

RIA Novosti / Valeriy Melnikov

Magna has opened its fifth plant in Russia. It is ramping up Russian production as more foreign carmakers expand their operations. But local component production is still in low gear.

The new Kaluga region plant will churn out bumpers, dashboards, radiator grills and other components. Parts the Russian auto industry currently lacks.

The Kaluga plant is just one of a series of Russian projects run by Magna. In late September the Canadian company also announced the opening of three plants in St. Petersburg.The total investment into the Kaluga project topped 74 million euro.

The plant will manufacture components for Volkswagen, Skoda, Renault and Peugeout Citroen. Magna vice president for new business development and marketing, Hubert Hodl says the company is using a mix of Russian and imported parts, but that it will shift towards more Russian parts over time.

“For certain products we are using Russian raw material or semi fabricated materials, for some parts we still have to import still, for example, from outside. But I am pretty sure that this will change over time.”

Experts say this year global car production could exceed pre-crisis levels, with 70 million vehicles rolling off the assembly lines. Russia will contribute about 1.7 million to that total by 2011. However many of these are simply assembled here rather than built from scratch.

Stanley Root, Automotive Leader at PricewaterhouseCoopers Russia says the biggest bottleneck for production in Russia is the lack of certain components.

“There is plenty of manufacturing plants, but the source of supply of world class quality components is pretty limited, and a lot of the plants which have been setup are still importing the vast majority of their components. So now the big question, really, is to consolidate the restoration of the Russian car industry.”

The growth potential of the Russian car market is such that experts believe more foreign manufacturers will be looking set up joint ventures with domestic firms.

But as the industry here expands some kinks in the manufacturing process need to be ironed out. Analysts say Russia needs to produce more high quality metal components if it’s to fulfill its potential as a base for foreign carmakers.

http://rt.com – New Magna plant to step into Russian car component gap

24/10/2010

Canada’s Magna to open auto-component plant in Kaluga region

Car industry. Photo: RIA Novosti

Canada’s Magna International Inc, the world’s largest supplier of auto components is to open an auto component plant in Russia’s Kaluga region on October 28.

According to the press service of the Canadian company, the new plant will produce auto components for the Russia-based assembly plants of Volkswagen, Skoda, Renault and Peugeout Citroen.

In particular, the new plant will produce bumpers, dashboards and radiator grills. In late September Magna also announced the opening of three plants in St. Petersburg.

The voice of Russia

18/10/2010

Lafarge pours foundations for Russian cement expansion

The world’s largest cement maker, French company, Lafarge, is planning to invest 1-2 billion euro in the Russian cement industry over coming years.

Russian Prime Minister Vladimir Putin has confirmed the major plans of Lafarge at the annual meeting of Council on Foreign Investments, saying the company is ready to expand production capacity despite economic volatility.

“In the midst of economic turmoil the company has started the construction of a cement plant in the Kaluga region. Lafarge total investment in the Russian cement industry could reach 1-2 billion euro in a few years.”

Lafarge has operated in Russia since 1995 and owns the “Voskresenskcement” cement plant in the Moscow region and “Uralcement” near Chelyabinsk. In 2006, it signed an agreement to build a 150 million euro plant in the Rostov region with a production capacity of 2 million tons per year. The construction plans for Kaluga cement plant was announced in 2008, but later put on hold due to declining cement demand.

Lafarge agent says the company has managed to overcome several administrative barriers and has resumed its plans for the Rostov and Kaluga regions.

“The company has worked out a strategy for the Russian market, putting forward the most important and profitable projects such as Kaluzhsky plant, after trade conditions have been eased by the government and license for resource exploration in Rostov has been obtained”

The Russian government has agreed to remove all duties on the cement exports from Russian production, with a new law to come into force in November. Lafarge says this will open wider opportunities and spur demand.

“Recent policy and trade law amendments will positively influence the demand for cement and lead to increase of production. We also think that the central region is very attractive and Kaluzhsky plant with 2 to 4 million production output will reduce the shortage in the region. In Rostov at current stage Lafarge is busy on the preparation needed to launch the active stage of Rostov project development, dealing mainly with permitting issues.”

Российская газета

22/09/2010

Finnish firm starts work on new plant in Russia’s Kaluga Region

Packaging materials plant

A Finnish company started  construction of a plastic film extrusion plant on Wednesdayat an industrial park near Kaluga in central Russia, a regional administration official said.

Ab Rani Plast Oy will be the first tenant of the Lemcon I-Park Kaluga industrial park, which is being created by Finland’s Lemminkainen.

“It will be the first company in the first private industrial park in the Kaluga region, where about 20 industrial productions and logistics centers are supposed to be set on 135 hectares,” the official told RIA Novosti.

“The plastic film extrusion plant is scheduled to be launched at the end of 2011. Investment in the project amounts to 20 million euros.” He said the industrial park was being created to offer investors “an effective and easy way to enter the Russian construction materials market.”
KALUGA, Russia, Sept 22 (RIA Novosti)

02/08/2010

Russia Today: Kaluga Region: source of Russian VW


VOLKSWAGEN Group Rus is part of the global group Volkswagen AG and encompasses the operations on the Russian market of four brands – Volkswagen, Skoda, Audi and Volkswagen commercial vehicles. From January to August 2010 VOLKSWAGEN Group Rus sold almost 80 000 vehicles in Russia, of which more than 60 000 were produced in Kaluga. The brands of the company have a leading position on the Russian market and the market share of the company exceeds 7.3% and continues to grow.

Since November 2007 VOLKSWAGEN Group Rus has been producing cars in Kaluga, 170 km south-west from Moscow. In October 2009 the plant started full cycle production in the presence of Russian prime-minister Vladimir Putin and Russian political elite. Today the industrial capacity of the plant is 150 000 vehicles per year and the model range includes the new Volkswagen Polo sedan, specially designed for the Russian market, Volkswagen Tiguan, Skoda Octavia, Skoda Fabia and also Volkswagen Touareg und Volkswagen Multivan.

With a total investment volume of 774 million euros, of which 570 million euros were invested in the plant in Kaluga, VOLKSWAGEN Group Rus is the largest investor in the Russian automotive sector.

In 2009 Volkswagen Group Rus became the official automobile partner for the Sochi 2014 Olympic and Paralympic Winter Games. Volkswagen Group Rus will supply circa 3500 vehicles of Volkswagen, Audi, Skoda and Volkswagen commercial vehicles brands to the Sochi 2014 Organizing Committee for use during preparations and the Sochi 2014 Olympic and Paralympic Winter Games. Most of vehicles will be produced in the Kaluga plant.

http://www.volkswagengrouprus.ru, press-publications

27/04/2010

Peugeot-Citroen-Mitsubishi opens Kaluga plant

RIA Novosti / Aleksey Kudenko, STF

The Peugeot-Citroen-Mitsubishi group has officially opened a production factory in the Kaluga region with a 125 thousand cars a year expected to be produced.

The plant is set to produce five models, including the Peugeot 308 and 4007, Citroen C4, Citroen C-Crosser and the Mitsubishi Outlander XL. For 2010, the roughly $407 million factory will produce 25 thousand vehicles, with full scale production slated to start in 2012.

PSA Peugeot Citroen Chairman, Philippe Varin, said that initially the company planned on producing 168 thousand cars a year but had to adjust production figures due to the crisis.

Varin said that the price on the Peugeot 308 which will be the first car to be produced at the plant, will see a price reduction so that the car could participate in to the Russian clash for clunkers program.

Mitsubishi Motors board of directors chairman, Takashi Nishioka, said the Kaluga facility would prove to be a major component of his company’s activity in Russia.

“Production here will allow us to benefit. I hope that it will become a cornerstone of the alliance for the long and medium term.”

Nishioka said there would be no changes to prices for their sport utility vehicles, the Citroen C-Crosser and Mitsubishi Outlander XL.

“We are not planning to lower prices because of local production.”

Anatoly Artamonov, governor of the Kaluga region, said that he expects that companies will follow Peugeot’s example and increasingly come to Russia, in particular, the Kaluga region.

“Many are already organizing their production.”

http://rt.com – Peugeot-Citroen-Mitsubishi opens Kaluga plant

20/10/2009

VW shows how to take Russian carmaking forward

While Avtovaz has been pushed to the brink by a 50% sales slump during the economic downturn, German giant, VW, has been pumping huge investment into Russia with big plans to expand.

What was a classic greenfield site in Kaluga just three years ago is today a state-of-the-art carmaking plant. Now it’s launching a complete-cycle production-line for 6 Volkswagen and Skoda models – with a ‘Made in Russia’ label.

It’s probably the first good news to come from the Russian carmaking industry in recent months –reeling from a collapse in demand. Jaroslav Holocek, Personnel director from VW Russia, says the fundamentals of the Russian market were enough to keep the money coming for the Kaluga plant.

“Of course we all suffered from the crisis, but we find the Russian market very attractive for investment”

Visiting Prime Minister Vladimir Putin described the plant as an industrial city. He said the smart management which created it gives inspiration that Russian carmarkers can steer their way out of crisis.

“I have no doubts that they’re capable of coping with current problems, upgrading production and turning out competitive goods, which are in demand now. We’ll be providing comprehensive assistance to domestic car manufacturers.”

Despite the market slump, WV remains the biggest foreign investor in the Russian car industry with a 6% market share. €570 million has been injected into the Kaluga plant since 2006. Investment kept flowing even during the worst of the credit crunch – with almost one hundred million euro more to be ploughed-in next year.

Employees at the VW plant know about the crisis, but its not at their work place. At a time when most carmakers halted production and cut thousands of jobs VW expanded. Not a single worker has been laid off during the slump.

Quite the opposite in fact: with plans to make one hundred and fifty thousand cars a year for Europe’s largest car market, the company plans to nearly double the workforce here. With Canadian car-parts maker Magna also building a plant in Kaluga, international carmakers are leading the way to securing the future of the industry in Russia.

http://rt.com – VW shows how to take Russian carmaking forward

20/01/2009

New Volvo truck plant opens as sector braces for tough year

Sweden’s Volvo Trucks has launched its assembly plant in what’s know as Russia’s Detroit – the Kaluga Region. Analysts say the timing of project is both good and bad.

Dozens of journalists – dozens of questions left unanswered. Volvo trucks spoke about 100 million euro plant investment, with a potential capacity of 15 000 vehicles a year.

But how the company revised its plans to accommodate the economic downturn remained secret, with the Head of Volvo Trucks, Russia, Lars Korneliusson saying the number of uncertainties made making forecasts public of little value.

“With the situation we have today, we do not make forecasts. At least we don’t publicly announce our forecasts because its so difficult to make forecasts, so many factors, so many uncertainties, that we don’t feel that its useful to announce any figures.”

Analysts say the company will be able to produce no more than half its potential capacity in the next 2 years. They say, truck producers will be hit worse than car manufacturers as their main customers such as retail and construction, are experiencing major problems.

However, the timing for the plant launch was good as Russia has recently sharply raised duties on imported vehicles, which provides some upside according to Elena Sakhnova, Analyst at VTB.

“If you import a heavy truck right now you will between 5% to 25% duty, depending on the carrying capacity. Given that the prices for heavy trucks are quite significant, they exceed $50 thouand and they are actually more than $100 thousand, you can see that the savings on the duty itself will be quite significant.”

Analysts say, Volvo also has an advantage over local players like Kamaz, as most Russian customers need trucks for long-distance hauling rather than servicing construction sites. But that won’t allow it to escape short term troubles.

On Monday Russia’s major truck manufacturers resume production after a month long break. However a forecast 40% decline in sales means that local truckmakers, including the newly opened Volvo plant, may go on more forced vacations this year.

http://rt.com – New Volvo truck plant opens as sector braces for tough year

08/09/2008

Samsung opens Kaluga plant

Samsung electronics has opened a TV set production plant in Russia’s Kaluga region.

The $137 million project is expected to help the company increase its share of the Russian market to 30%.

Samsung plans to produce 2 million plasma and LCD TV sets annually. The plant will reach its full capacity in 2010. Kaluga region, near Moscow, is popular among global carmakers. Volkswagen and Peugeot-Citroen have plants there.

http://rt.com – Samsung opens Kaluga plant

29/01/2008

Russia’s Kaluga region wins more car business

Peugeot Citroen has signed a deal to construct a car assembly plant in Russia’s Kaluga Region, bringing even more jobs to the area.

The company is to invest ? 300 million in the plant, which will have a capacity of 150 thousand cars a year.

The plant is due to be completed by 2010.

Rival car maker Volkswagen has already started construction of an assembly plant in Kaluga.

Peugeot Citroen is now in talks with Mitsubishi on production of a japanese model at the future plant.

“If we succeed with that co-operation with Mitsubishi, some Mitsubishi cars will be built in our new factory. But in any case, if negotiations are not successful – we will follow our own path and we will build our project as it is planned for the moment,” promised Didier Aleton, the head of Peugeot Projects Russia.

http://rt.com – Russia’s Kaluga region wins more car business

29/12/2007

Russia’s Kaluga poised to be Detroit of Europe

Russian city of Kaluga, just over a hundred kilometers southwest Moscow, is attracting more and more car giants. French carmaker Peugeot Citroen has already chosen the city for its first assembling plant in Russia. While its major partner, Japan’s Mitsub

With the limelight currently on St. Petersburg, famous for attracting international automakers, the Kaluga region is rapidly becoming a major carmaking centre in its own right.

Its already home to Volvo Trucks and Volkswagen. Peugot CItron has recently announced it is following suit. And if Mitsubishi becomes the next to set up shop, the region’s output in several years may total half a million cars.
CEO of Volvo Trucks, Staffan Jufors, says his firm’s ready to expland in the area.

“The investment we made in the factory in 2003 was very successful for us. Now we are growing out of capacity in that factory and doing this because it’s dramatically increased investments that we did,” Jufors said.

Managing director of Volkswagen Russia, Friedrich Lenz, is predicting a rush to Kaluga.

“We are not the first and we are not the last – we are coming at the right time!” Lenz said.

The city is attractive for the auto giants because of its access to railways connecting to Europe. Other transport links include the motorways leading to Moscow and Kiev.
Just three hours drive from Russia’s capital, land is cheap and city officials are working to improve the regions investment climate.
In partnership with foreign investors, they are working on infrastructure. Building roads and new electricity lines are the priority. The city is emphasizing its commitment to reducing bureaucratic obstacles, and offering as much help as they can.

Transport analyst at A.T. Kearney, Evgeny Bordanov, says industries connected with the manufacture of cars will the next to set up in Kaluga.

“When they combine their volumes they become very attractive for components suppliers to come and set up their plans there as well. As you know, the cost of producing components is the major item for original equipment manufacturers,” Bordanov said.

With four major plants in St Petersburg, and Kaluga filling up quickly, analysts forecast that by 2010 Russia will become Europe’s largest car assembler, making more than a million international models annually.

http://rt.com – Russia’s Kaluga poised to be Detroit of Europe

27/12/2007

Peugeot Citroen to build cars in Russia

Peugeot Citroen has announced plans to build a car plant in Russia. The French auto maker has chosen the city of Kaluga, southwest of Moscow, for its first factory in the country.

Rivals in the family-car market, Volkswagen, already have a plant there.

The new complex will specialise in the production of mid-sized vehicles.

Peugeot Citroen also has plans to expand operations in Russia, where mid-range cars account for 60% of sales.

The factory is expected to be completed by 2010.

http://rt.com – Peugeot Citroen to build cars in Russia

28/11/2007

Volkswagen plant in Russia is operable

Russian city of Kaluga, just over a hundred kilometers southwest Moscow, is attracting more and more car giants. French carmaker Peugeot Citroen has already chosen the city for its first assembling plant in Russia. While its major partner, Japan’s Mitsub

With the limelight currently on St. Petersburg, famous for attracting international automakers, the Kaluga region is rapidly becoming a major carmaking centre in its own right.

Its already home to Volvo Trucks and Volkswagen. Peugot CItron has recently announced it is following suit. And if Mitsubishi becomes the next to set up shop, the region’s output in several years may total half a million cars.

CEO of Volvo Trucks, Staffan Jufors, says his firm’s ready to expland in the area.

“The investment we made in the factory in 2003 was very successful for us. Now we are growing out of capacity in that factory and doing this because it’s dramatically increased investments that we did,” Jufors said.

Managing director of Volkswagen Russia, Friedrich Lenz, is predicting a rush to Kaluga.

“We are not the first and we are not the last – we are coming at the right time!” Lenz said.

The city is attractive for the auto giants because of its access to railways connecting to Europe. Other transport links include the motorways leading to Moscow and Kiev.
Just three hours drive from Russia’s capital, land is cheap and city officials are working to improve the regions investment climate.
In partnership with foreign investors, they are working on infrastructure. Building roads and new electricity lines are the priority. The city is emphasizing its commitment to reducing bureaucratic obstacles, and offering as much help as they can.

Transport analyst at A.T. Kearney, Evgeny Bordanov, says industries connected with the manufacture of cars will the next to set up in Kaluga.

“When they combine their volumes they become very attractive for components suppliers to come and set up their plans there as well. As you know, the cost of producing components is the major item for original equipment manufacturers,” Bordanov said.

With four major plants in St Petersburg, and Kaluga filling up quickly, analysts forecast that by 2010 Russia will become Europe’s largest car assembler, making more than a million international models annually.

http://rt.com – Volkswagen plant in Russia is operable

29/08/2007

Nestle bites into Russia’s growing pet food market

The world’s largest food producer, Nestle, has opened a pet food plant in Russia’s Kaluga region, south of Moscow.

Production is slated to start this autumn with an annual target of 40,000 tons.

Analysts say the $US 30 MLN project attests to the rapid growth and attractiveness of Russia’s pet food market as a whole.

While synonymous with chocolate, Nestle is also a leader in the production of pet food. The company says the investment is worthwhile anywhere in the world, but particularly in Russia.

“With growing incomes, consumers are able to spend more on improving the lives of their pets,” said Bernard Meunier, Chief Executive Officer of Nestle Russia.

The exact number of pets in Russia isn’t known, but analysts estimate it at about 35 MLN.

This means every third Russian household has a cat. And when it comes dogs, Russia comes first in Europe.

These numbers are enough to lure global giants such as Nestle. The dry pet food plant in Kaluga will be run by a Russian branch of its subsidiary Nestle Purina PetCare.

“The Russian market is not very fragmented. We have one main competitor – Mars. They arrived a bit earlier on the market. We are moving quite fast in our growth. We are moving faster than the market,” pointed out Yana Mikhailova, the Director of Nestle Purina PetCare Russia.

Oleg Arustamov, a sales manager at wholesale company Grand Alfa, which owns a chain of pet stores in Moscow, says customers tend to go for Nestle rather than Mars.

Russia’s pet food market is worth about a $US 1 BLN, according to the European institute of market analysis, Euromonitor International.

Russia’s pet food market is a green field for many global investors such as Nestle. Only 5% of the country’s population buy special food for their pets. This leaves plenty of room for growth to attract new investors and to make pets happier and full.

http://rt.com – Nestle bites into Russia’s growing pet food market