Mazda Sollers is the first manufacturer to sign the industrial assembly analogue agreement

Mazda Sollers is the first manufacturer to sign the industrial assembly analogue agreement

Vedomosti – The Ministry of Industry and Commerce Interdepartmental Commission has approved the first federal special investment agreement, signed by the Mazda Sollers Manufacturing Rus joint venture (with 50%-50% partnership) on Thursday. The relevant statement has been made by the representative of the Ministry of Industry and Commerce Industrial Development Fund (FRP) to Vedomosti. The contract, which will be valid until 2023, will have been signed by the end of April, as told by the representatives of FRP and Sollers.

According to the special investment agreement, Mazda Sollers Manufacturing Rus will invest 2 billion rubles in the organisation of engine production in Vladivostok, with 50,000 units capacity, said the representative of FRP. The company will also set up the production of the renewed Mazda-6 and Mazda CX-5 models, as stated by an official from the Fund and confirmed by the representative of Sollers, without revealing the investment details. Mazda Sollers Manufacturing Rus will have an annual production capacity of 100,000 vehicles. Mazda sales have shrunk by 46% to 27,358 vehicles, according to AEB data.

The joint venture will retain the benefits, as to the transportation of the vehicles by railway from Vladivostok, for the duration of the contract, as well as being entitled with guaranteed participation in government programmes supporting the automotive market and car production, says a person familiar the the preparation process of the investment contract. Representatives of Sollers and FRP have not made any comments on the subject. Mazda Sollers Manufacturing Rus has not applied for preferential advantages in government purchases, but asked for customs exemptions, however this request has not been approved, added the source. The availability of discounts on the imports of technological equipment has also been discussed, as told by the Sollers representative, however the joint venture can only be eligible for discounts by becoming a resident of the Special Economic Zone in Vladivostok, the application for which has already been made.

The joint venture has missed out on the benefits for car component imports last year, by failing to reach the required capacity within the time limit set by the industrial assembly agreement, reminded a Ministry of Economic Development official. The Sollers representative has added that various measures are being studied for Mazda, for the purpose of cost reduction during car component imports.