Putin to visit Naberezhnye Chelny to sign agreement with FIAT

MOSCOW, February 11 (Itar-Tass) - Russian Prime Minister Vladimir
Putin on Thursday will pay a working visit to Naberezhnye Chelny where he
will take part in a signing ceremony of the agreement on the creation of a
joint venture between Sollers-Naberezhnye Chelny and FIAT Group, a
memorandum on strategic cooperation between KAMAZ and Daimler AG, as well
as contracts on the supply of KAMAZ products to Russian power-wielding
agencies - the Defence Ministry, Emergency Situations Ministry, Interior
Ministry and Federal Penitentiary Service, as well as to the State
Transport Leasing Company.
The government's press service reported that the "creation of the
SOLLERS-FIAT JV envisages the organisation in Russia of centre for
designing and manufacturing of automobiles on the base of the
FIAT-Chrysler platforms." The project's implementation will result in the
appearance of a second major player on the Russian market of passenger
automobiles.
The JV's production line will include nine new models of various
class, the enterprise's planned capacity is up to 500,000 vehicles a year,
of which at least 10 percent are planned for export. The target
localisation level within the JV framework will reach at least 50 percent,
including the production in Russia of engines and gear boxes, as well as
the creation of a technological park for the production of automobile
components. The total investments in the project, including the creation
of production capacities for the manufacturing of automobiles, as well as
investments in the research and design work, are estimated at 2.4 billion
euros.
Director General and the main stockholder of Sollers Vadim Shvetsov
and FIAT GROUP Chief Executive Officer Sergio Marchionne will sign the
document.
Sollers noted that the company expects to get support from the
government in this project with the attraction of long-term debt financing
with subsidised interest rate.
Sollers comprises Sollers-Naberezhnye Chelny, the Ulyanovsk Automobile
Plant, Zavolzhsky Motor Plant, Sollers-Yelabuga, Sollers-Far East. The
company manufactures automobiles of the UAZ, Isuzu, Ssang Yong and Fiat
marks.
Besides, Putin will take part in the signing of a memorandum on
strategic partnership between KAMAZ and Germany's Daimler AG. A number of
contracts on the supply of products of KAMAZ OJSC to Russia's
power-wielding agencies and to the State Transport Leasing Company will
also be signed on Thursday.
During his stay in Naberezhnye Chelny the RF prime minister will also
visit the KAMAZ research and technical centre where he will hold a meeting
with members of the KAMAZ-Master sports team - one of the world's leading
automobile sport teams, that three times won the World Cup in off-road
motor rally, nine times won the transcontinental Dakar race.
-0-ezh