KAMAZ plans 100 billion rubles investment until 2020

KAMAZ plans 100 billion rubles investment until 2020

Vedomosti – The investment in the construction of Mercedes-Benz cabin frames factory in Tatarstan will amount to €400 million, said the general director of KAMAZ: Sergei Kogogin, at St. Petersburg International Economic Forum. The plant will be built as a joint venture of KAMAZ and the German manufacturer Daimler (who owns 15% of KAMAZ), with 50%-50% shares, within the framework of Daimler KAMAZ Rus, as explained by Kogogin during his interview with Vedomosti. KAMAZ will finance the investment with means including bonds (yet another one can be allocated till the end of 2016) and Daimler will invest its own funds, as highlighted by the general director. The construction of the factory is intended for Daimler’s fulfillment of the conditions of the industrial assembly agreement.

For comparison: the construction cost of the Volvo and Renault heavy-duty trucks factory, built in Kaluga next to the plant of Volvo Group, amounted to €90 million. The factory has an annual capacity of 15,000 units. The Tatarstan plant will have approximately four times larger capacity: 57,000 per year. The cabins will be used in the equipment of KAMAZ and Mercedes-Benz (manufactured at Daimler KAMAZ Rus facilities) heavy-duty trucks.

Initially, the factory was planned to commence operations in 2019. However, as announced by Kogogin on Thursday, the start of production may be postponed for another year.

Kogogin has named the organisation of the production of the new 12 litres engine, which is designed with support from Liebherr, as the priority investment project. The serial production is planned to start in 2019 and the investment amount is $150-200 million.

KAMAZ plans to invest 7 billion rubles in 2016 and 7-10 billion rubles in 2017. The total cost of the investment programmes of the company until 2020 is around 100 billion rubles, as stated by Kogogin.