Kiekert RUS launches its production in Naberezhnye Chelny

About the start of German company’s production line in Kama Industrial Park «Master» noted Kiekert RUS CEO Alexander Conson during the «Local production of automotive components in the Republic of Tatarstan» roundtable in the II International Winter Forum «Invest in Tatarstan».

Discussions were moderated by the National Association of Automotive Components CEO Michael Blokhin. Topics for discussion were the key factors of the development strategy in the localization of automotive components, evaluation of existing procedures in procurement of components, opportunities, necessary conditions and risks in the process of project implementation. Experts also shared with the automotive industry forecasts and discussed the best practices of Russian and international companies.

A report on the 2013 year results and the prospects for the Russian automotive market made by the PwC Director on audit services Mikhail Nosov. Mercedes-Benz Trucks Vostok Head of the department of quality Alexey Lemeshko shared with information about the localization of Mercedes-Benz trucks production in Russia. In Tatarstan, in particular, Mercedes-Benz Trucks Vostok production facilities and head office were opened in Naberezhnye Chelny in 2010. LLC «Mercedes-Benz Trucks Vostok» is a joint venture of «KAMAZ» and Daimler AG.

Commenting on the selection of sites for the location of production, Alexey Lemeshko noted that the choice in favor of Naberezhnye Chelny was made on several components: location in the central part of Russia, skilled workers, ready industrial and office premises with the necessary infrastructure, plus the presence of the tools and equipment suppliers. Today the company includes 275 workers, for comparison, in Moscow - 141. Since February 2012 production of Mercedes-Benz Trucks Vostok works in two shifts.

In the Chelny enterprise’s production process includes frame and chassis assembling, dynamic testing, final inspection and audit. According to the company in 2013 it has 55 certified partners in Russia (in 2012 - 48). Alexey Lemeshko also noted that in September 2013 the company held its first conference on the production of Mercedes-Benz Trucks Vostok automotive components suppliers, which was attended by active and potential components suppliers.

In his speech the next person - KAMAZ Marketing and procurement processes Director Ravil Ibragimov presented strategic approaches to the development of automotive components base. The speaker noted that the company's products are planned to position in the middle price segment, providing a presence in the most intensive sectors.

Today KAMAZ trucks of new generation by the main technical characteristics and consumer properties correspond to the automotive international level. Among the samples of the new generation vehicles: tractor KAMAZ 5490, tractor KAMAZ 5490 D, heavy transport tipper KAMAZ 65205, heavy transport tractor KAMAZ 65206, heavy truck tractor KAMAZ 65802, light transport flatbed tractor KAMAZ 5308.

Among KAMAZ auto components suppliers today more than 20 companies - is Cummins Deutz, Knorr, Schwitzer, Bosch, Tirsan, Michelin, Federal Mogul. There operate a number of joint ventures: ZF KAMA, Cummins KAMA, «Knorr-Bremse KAMA», «Federal Mogul Naberezhnye Chelny». Ravil Ibragimov also told about the support of «KIP» Master» and residents working in its territory. Separately speaker underscored the existing enterprise system and procurement program.

Senior Banker and project coordinator in the automotive industry of the European Bank for Reconstruction and Development (EBRD) Alexey Shelukhin made a presentation of practical aspects of the bank's activities in this area. According to the speaker Russia for EBRD - is the main country for operations - each year it invests 2 million euro. Among the proposals of the bank: financial instruments, infrastructure and energy.

«The Russian market in a long term will develop dynamically», - noted Alexey Shelukhin. He also presented the stages of the automobile sector development in the country, underscoring that until 2004, Russia had no strategy for this market. One of the outstanding projects of this period - the opening of the Ford plant in Vsevolozhsk (Leningrad region) and the company's cooperation with JSC «AVTOVAZ». The next period - is the development of the industrial assembling regime. Then into the Russian market comes Volkswagen and opens General Motors plant in St. Petersburg. Localization level at this stage, said Alexey Shelukhin, was low. Then followed the regime with more stringent conditions of industrial assembling, where new strategic alliances with foreign companies - Renault and Ford Sollers are forms.

Alexey Shelukhin told that the bank is not only a financial service provider - in the interests of the Bank - is the development of infrastructure, promotion of the automotive industry in Russia on all fields and underscored that the crucial issue is the arrival of Russian 2-3 levels supplier and the need for foreign investment.

About the human resources at the roundtable told Deputy Minister of Education and Science of the Republic of Tatarstan Andrey Pominov, who noted the training of qualified personnel for the needs of the automotive industry in the region and the creation in the republic ten resource centers in various industries. In addition this initiative will also support to a close relationship with the employer, which determines the performance of each center.

Kazan representation of DoorHan Chinese group companies CEO Konstantin Antonov in his speech told about the company's work in the republic, noting the favorable investment climate of Tatarstan. Konstantin Antonov also shared with DoorHan experiences in creation of small industrial parks on a district level.

One of the round table’s key presentations was the speech of Kiekert RUS CEO Alexander Conson, who presented company’s success story of business development in the region. Alexander Conson shared that during the opening day of the «Invest in Tatarstan» forum in Naberezhnye Chelny Kiekert RUS starts the production on the «KIP «Master» site. Commenting this, the speaker said that the company had been working to determine the production localization. First place in the «rating» took Naberezhnye Chelny, then Kazan, Nizhny Novgorod, Togliatti. Alexander Conson underscored that Kiekert RUS had a big support by regional government and Naberezhnye Chelny authorities. «The process for choosing the region was very serious, - continued Alexander Conson. - Our clients - GAZ, Ford and AVTOVAZ, so we evaluated Russian cities under this «triangle».

Tatarstan Investment Development Agency Press Service