Automotive supplier industry is concentrated in six regions in Russia

Automotive supplier industry is concentrated in six regions in Russia

Avtostat – Over 100 foreign automotive supplier industry companies operate in Russia. Leningrad, Kaluga, Moscow, Samara, Nizhni-Novgorod and Tatarstan are the main regions, which attract investment from foreign suppliers.

New ones have been added to the foreign supplier industry companies investing in Russia, in 2014 as well. Kiekert has opened a car lock factory in Naberezhnye Chelny and Continental an engine components factory in Kaluga in May and the Russo-Japanese partnership Ural Wiring Systems a cable factory in Yekaterinburg and Continental – ContiTech a plastic and rubber components factory in June. Johnson Controls and Youngsan Kld in Kaliningrad (seats) and Coskunoz in Naberezhnye Chelny (sheet metal stamping parts production) are the supplier industry investments, which commenced operations in Autumn. German Pierburg Pump Technology, on the other hand, is making preparations to start manufacturing electric pumps for engine cooling systems, at Avtoelektroarmatura factory established in Pskov, in November. Edscha and Kdac Thermal Rus are planning to start production in Tolyatti and Boryszew in Dzerzhinsk, until the end of the year. Anotolin, which manufactures door and roof panels in Leningrad region, intends to establish two more production lines in Nizhni-Novgorod. Furthermore, the factory will start manufacturing automatic window systems in Nizhni-Novgorod in 2015.

There are other supplier companies, expected to commence operations in various Russian cities within 2015: GMD Plastic Systems in Klin and Hi-Lex Rus, Atsumitek Toyota Tsusho Rus, Cie Automotive Rus and MANN+Hummel Tolyatti in Tolyatti SEZ. Bosch plans to manufacture anti-blockier, generator, Common Rail injection and window wiper systems near Samara. Nemak is expected to start cylinder heads and engine blocks production in Ulyanovsk region, at the end of the year.

Two supplier industry areas have been included in the “Top-20 market niches with promising perspectives” ranking, published by Moscow’s Generalny Director magazine. These are: fuel elements and battery production on the ninth spot and twelfth placed component production. According to the analysts who made the rankings, the profitability rates in battery and component productions are 70% and 41%, respectively.