VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Severstal-Avto has implemented a large-scale investment project to construct a production facility to assemble light commercial vehicles: the Fiat Ducato van, ISUZU trucks, and car components within the Special Economic Zone Alabuga in the Republic of Tatarstan.
Total production capacity created by the company in the Alabuga zone accounts for more than 120,000 vehicles annually. Of those, 75,000 will be production of the Fiat Ducato light commercial van and 50,000, ISUZU trucks. Severstal-Avto will produce the Fiat Ducato light commercial van on the authority of a license acquired from Fiat. Fiat Ducato production in Italy ended in 2007. Production of ISUZU trucks is performed in the scope of a joint venture established between Severstal-Avto, ISUZU Motors and the Japanese trading company SOJITZ.
Total investments in these projects will be about 8 billion roubles and more than 6 billion roubles have already been invested. The complete assembly cycle, including welding, painting and final vehicle assembly, has been constructed for the production of Fiat Ducato and ISUZU vehicles in Alabuga. Addtionally, this is one of the few projects of "industrial assembly" of import contented cars which also provides for press stamping which will begin in the second part of 2008. The facility will stamp sheet metal body parts for Fiat Ducato as well as components for ISUZU truck cabins.
In addition, a car component supplier's park, in which plastic interior and exterior parts, seats, exhaust systems and suspensions will be produced, has also been planned at the site of the Severstal-Avto production facility. These projects have been implemented jointly with international component suppliers but nevertheless are based on using material and product derivatives of Russian raw materials industries, especially steel mills and the petro-chemical industry.
Sheet steel press forging in Alabuga will use the available Russian capacity of automotive grade sheet steel production. Production of plastic products will use polymeric raw materials produced by the Nizhnekamsk petro-chemical plant, and foam and fabrics for the production of seat components will be supplied by Russian firms.
Also, diesel engines for Fiat Ducato and ISUZU vehicles will be assembled in Russia. In particular, production of F1А Italian diesel engines will begin at the end of 2008 at the Zavolzhsky engine plant owned by Severstal-Avto. These engines will be assembled in a joint venture with Fiat Powertrain Technologies (engine production subsidiary of Fiat). Assembly of ISUZU diesel engines will begin in Alabuga in 2009.
Thus, due to the active development of Russian car component production, domestic content for ISUZU trucks will be about 50% and for the Fiat Ducato commercial vans, more than 70%.
Another unique feature of Severstal-Avto projects in Alabuga is that these projects provide a product that can be developed and adopted for the special requirements of the end user.
In particular, the company has developed and certified special modifications for Fiat Ducato vans for Russia, such as ambulances, school buses and mini-buses, as well as a version of an invalid's car. Production of a wide line of adapted specialty bodies, such as isothermal bodies, building cranes, tow trucks, etc. has also been engineered for use on the ISUZU truck frame.
All projects implemented by the company in Alabuga have been provided with undersigned agreements on industrial assembly. Projects designated for the production of the Fiat Ducato and ISUZU vehicles also have the Alabuga residents status.
