KAMAZ to invest over €200 million in 2013

KAMAZ will invest €221.5 million upgrading production facilities and introducing new models.

Russia, Russian automotive, heavy truck sector, KAMAZ, Sergei Kogogin, inward investment, investment, russian truck market leaderKAMAZ CEO, Sergei Kogogin announced the investment saying that next year’s investment is part of the KAMAZ improvement process that will see a total spend of 60 trillion roubles up until 2020.

“Our aim is to reach the targets we have set over the next 2 years; these will enable us to upgrade and improve production facilities within the company and to introduce a new range of trucks”.

Sergei Kogogin CEO KAMAZ

New KAMAZ Range

The Company plans to introduce 80 new vehicles in 2013 and will have a completely new range from 2015. The Russian truck market is firmly established as the largest in Europe and has seen investment from Volvo and Renault Truck and Scania who have both built Russian truck assembly plants; MAN Truck will be opening a production facility in St Petersburg whilst PACCAR DAF Trucks are looking for a partner to establish a joint venture.

Sergei Kogogin reported positive 2012 finance results for the Russian truck builder, ahead of expectations. KAMAZ income for the year to date (January to November) was 106,900 million roubles (RAS) and almost equaled 2011 income (IAS). Net profit was 4,300 million roubles for the 11 months compared to 1,800 million (IAS) in 2011.

By the end of November 2012 KAMAZ had produced 47,500 trucks of which 11,500 were for export markets. KAMAZ is the Russian market leader in the 14 tonnes plus category with 33% market share. KAMAZ has kept its leadership in truck sales across the former Soviet Union with 30.4% share in the Ukraine, 37% share in Kazakhstan and a 33% share across the central Asian states.

KAMAZ are keeping a watchful eye on the economy and have installed flexible working within its factories. The company recently introduced a 4-day working week which reflected a cooling down in the heavy truck market. He was positive for 2013 saying

“If the market develops normally then we will abolish the four-day regime from March. We must streamline our manufacturing processes so we match supply with demand and avoid downtime”.

KAMAZ Iconic brand

KAMAZ is an iconic Russian brand that built its first truck in 1976 and celebrated its 2 millionth in 2012. The Company is well known for its’ daring Dakar Rally exploits having won the truck race a record 10 times as of 2011. In Cyrillic  КАМАЗ or Kamskiy avtomobilny zavod – translated: Kama Automobile Plant) is located in Naberezhnye Chelny in  the Tatarstan Republic and employs 50,000.

Partnership with Daimler Truck Division

Daimler Trucks and Kamaz created a partnership in 2008; with the joint ventures Mercedes-Benz Trucks Vostok (MBTV) and Fuso Kamaz Trucks Rus. (FKTR) starting production in 2010.

The partnership has worked well.

The Chelny MBTV plant manufactures Mercedes-Benz Actros, Axor, Atego and Unimog trucks. FKTR manufacturers the Fuso Canter light-duty truck on site. Daimler AG and the European Bank for Reconstruction and Development now jointly hold 15 percent of the shares in Kamaz.

Daimlers’ commercial vehicle division agreed terms with KAMAZ on November 16th, 2012 for the supply of Daimler Truck built engines and axles for KAMAZ’s trucks and buses. The initial agreement was 457 engines and 900+ natural gas engines for the KAMAZ buses. KAMAZ  will take 7000 engines and 15,000 axles in the first year of cooperation .

“Our modular component system provides the right solutions for our partner. Through our technological expertise and skill, we are helping Kamaz to expand its strong position on the Russian market.”

Stefan E. Buchner, Daimler Trucks Global Powertrain, Procurement and Manufacturing Engineering

“The signing of the agreement for axles and engines with Daimler opens up great opportunities for our company. Kamaz will be able to offer its customers the products that would meet the world quality standards and set new benchmarks for the Russian truck industry.

Time has shown that many years of our cooperation with Daimler as our strategic partner pays off and is yielding to positive results.”

Sergey A. Kogogin CEO KAMAZ

The EEV (Enhanced Environmentally Friendly Vehicle) compliant natural gas engines with an output of 170 kW (231 hp) to 205 kW (279 hp) and the Euro V compliant diesel engines with a performance of 260 kW (354 hp) to 335 kW (456 hp) will complement the existing KAMAZ engine line up.

Market Leaders

KAMAZ and Daimler Trucks plan to manufacture axles in Russia in a joint venture and Daimler’s commercial vehicle division plans to set up and expand a component network in the country. The companies are escalating their cooperation. Last June, they signed of a licensing agreement for the supply of Mercedes-Benz truck cabs for local production. The cabs will be used in the new KAMAZ trucks introduced on the market in 2013.