“Gazeta”: “Vladimir Putin expects Kamaz to rescue the automotive industry”
The prime minister inaugurates Russian-American production of diesel engines.
Vladimir Putin, speaking at Kamaz plant in Naberezhniye Chelny yesterday, unveiled a programme for bailing out the automotive industry. Kamaz happens to be the first plant to show signs of recovering from the crisis.
Engine of progress
During his visit to Kamaz Putin said that the anti-crisis programme has worked for the company, although not for AvtoVAZ, for which new bailout measures will be proposed shortly.
"State orders, protective import duties and purchase of cars on lease helped us a great deal," said Kamaz public relations officer Oleg Afanasyev. The plant's sales fell by about 50% compared with the average drop of 80% in the truck market.
Of the 12.5 billion in government money, three billion was spent to buy Kamaz trucks and out of the 25 billion additionally allocated to Rosagrolizing, five billion have been used, the prime minister explained later.
But Putin's visit to Kamaz also had another agenda. The prime minister now visits only those enterprises which launch new production or report the introduction of new technologies. In Naberezhnye Chelny the prime minister started an assembly line that produces diesel engines at the Russian-American enterprise Cummins Кама. Next year it is expected to produce 7000 engines and 25,000 engines annually by 2015.
The total cost of the project, including off-budget money, is 2.7 billion roubles and the payback period is six and a half years.
Kamaz's future plans include the development of a new cab, gearbox and all-wheel drive platform. "At present we need 10 billion roubles for investment projects. We have already applied to VEB," Oleg Afanasyev said. The new cabin will be built by 2013, but restyled Kamaz trucks will be sold from January 2011. They are already in the hangar, but journalists were not allowed to see them. They could only peep through a chink in the hangar door. The boxy cabins have become less boxy.
Petrochemicals and life
The prime minister yesterday also visited the Nizhnekamskneftekhim enterprise where he conducted a meeting on measures to develop petrochemicals and gas chemistry in Russia. The enterprises in the sector will be enlarged and consolidated, Putin said. "Russia accounts for 9-10% of world exports of crude oil. But its share in polymers, for example, is less than 1%. It imports more than a third of petrochemical products for domestic consumption," the prime minister noted. He then went on to unveil a programme for the development of the petrochemicals industry.
First of all,Putin called for prices in the sector to be put in order. Companies must agree with one another and disclose information, he said, referring to the relations between the companies which sell crude oil and the companies which buy it for processing. "By now one complicated problem has been solved, for which I would like to thank all those involved in the process who have worked during the day, Putin said. "I ask Deputy Prime Minister Igor Sechin and the FAS to follow through the agreements reached between the companies here. We are talking about prices, deadlines and amounts of raw materials supplied."
The prime minister's press spokesman Dmitry Peskov clarified that the prime minister was referring to the resolution of differences between Sibur and Kazanorgsintez over prices.
"Russia has recently seen a fragmentation of production complexes. Small units cannot be competitive in the modern market. Enlargement and consolidation of the sector is on the agenda, Putin continued. Energy Minister Sergei Shmatko said that major projects were already being implemented by Salavatnefteorgsintez and Caustic in Sterlitamak. Gazprom, Rosneft and Sibur Holding are contemplating the construction of capacity in the Baltic area close to the market. A major project to build a complex of oil refining and petrochemical plants is being implemented in Nizhnekamsk. The shareholders are Tatneft (91%) and Svyazinvestneftekhim (9%, representing the government of Tatarstan). Total investment in the project amounts to 222.7 billion roubles.
Putin stressed that the government was not going to invest in the development of petrochemistry and gas chemistry: "Modernisation of the sector does not require major direct cash injections by the government. It is a highly profitable sector and money can be easily raised on the markets."
In the prime minister's opinion, only established competitive companies should be eligible for government assistance.
Andrei Biryukov
