KAMAZ and Weichai Power have signed an engine production agreement

KAMAZ and Weichai Power have signed an engine production agreement


RusAutoNewsCom.- A trilateral agreement among Kamaz, Chinese corporation Weichai Power and the government of Yaroslavl region has been signed at St Petersburg International Economic Forum, as announced by Kamaz press office.

The document has been signed by the General Director of Kamaz Sergei Kogogin, the Chairman of Weichai Power Tang Xuguang and the Governor of Yaroslavl Region Dmitry Mironov.

The agreement proposes the localisation of the production of industrial diesel and gas engines with capacities of 520 to 2000 kW based on the joint venture of Kamaz and the Weichai Power, which is being created on the premises of the Tutaev Engine Factory.

The document has been signed as part of the implementation of the import substitution program in engine-building industry and is aimed at developing the territory of the factory-based town, as well as diversifying the sectors of the urban economy.

“We are glad to have the opportunity of cooperation with Weichai, one of the leaders in the field of research, development, production and sales of diesel and gas engines, in the organisation of modern, flexible and sought-after production of high-capacity engines, which have no analogues in the Russian market” – commented Kogogin. “Currently, we are actively working on the development of the product line, enlarging the product range with high-tech models. New products are especially necessary for a number of segments, particularly for ship and locomotive building, diesel and gas electric generators, as well as heavy special equipment” – added Kogogin.​​​

“Last autumn at the Eastern Economic Forum, Kamaz and Weichai Power have agreed on the creation of a joint venture in Yaroslavl region. Today, the negotiations have taken a concrete form as a trilateral agreement, which is strategically important for our region, with the support of the regional government of Yaroslavl” – said Mironov. “The localisation of the production of diesel and gas engines will start at Tutaev Engine Factory, within the framework of Kamaz Weichai” – added Mironov. ​​

Approximately 50 jobs will be created within the next two years, with the establishment of the new enterprise and more than 760 million rubles will be attracted to Tutaev, once the project capacity of 160 workplaces is fulfilled. The serial production of engines is expected to start by mid – 2020.