Avtovaz announces the signature of a Special Investment Contract

Avtovaz announces the signature of a Special Investment Contract


 

RusAutoNewsCom.- Avtovaz announced the signature of a Special Investment Contract with the Ministry of Industry and Trade of the Russian Federation, to support the development of Alliance brands in Russia – Lada, Nissan, Datsun, Renault and Mitsubishi and modernize facilities for their production.

Within the scope of the agreement, Avtovaz serves as the main investor within the group of Alliance partners that involves Lada Izhevsk, Renault Russia, Nissan Motor Manufacturing Russia, and Mitsubishi Motors Rus. This contract also involves the Government of Samara Region, the Government of the Udmurt Republic, the Government of Moscow, the Government of Saint Petersburg and the Government of Kaluga Region.

During the 10-year contract Avtovaz will invest more than 70 billion rubles, create around 2300 jobs, and together with its Alliance partners, expand localization of materials, parts and components, introduce new technologies, develop R&D activities in Russia and increase export volumes.

The President of Avtovaz Yves Caracatzanis said that the Special Investment Contract will greatly help the Company in the implementation of its ambitious mid-term plan. “In coming years Avtovaz Group is going to completely renew its Lada product range. In this situation, SPIC is providing the long-term visibility which is critical for our activities and it will also contribute to the development of the whole Russian auto components industry” – stressed Caracatzanis.

Nicolas Maure, Vice-Chairman of the Board of Directors, noted that the Russian market is key to the success of Groupe Renault, including Avtovaz. “I am glad that the Russian Federation government extended to Avtovaz and all Alliance partners in Russia the possibility to sign this SPIC which materializes our commitment to develop our activities in Russia” – stated Maure.

Sergey Skvortsov, Chairman of the Board of Directors, confirmed that the Special Investment Contract has been approved through an extraordinary Board meeting on December 24th. “This SPIC is a great opportunity for Avtovaz and its Alliance partners to continue investing in new projects and increase localization and exports which are critical for the future of the automotive industry in the country” – stated Skvortsov.