Issue: Jan 2006


Partnership opportunities in Russia



OEMs opening up in Russia include Ford, GM, KIA, ZAZ (Chevrolet cars), and TagAZ (Hyundai cars).

by Alan Tran

Avtopribor, one of the largest suppliers to the Russian automotive industry, is looking for partnerships with companies wanting to establish themselves in the country.
Partnerships are needed to meet the requirements of OEMs moving into Russia, says general director Alexey Melnikov. At present the company produces more than 400 items of automotive components for cars, trucks, buses, tractors, agricultural and special purpose vehicles. Avtopribor also offers its production facilities, technologies and staff for cooperation with new strategic foreign partners setting up in the Russian Federation and CIS countries. Melnikov says OEMs opening up in Russia include Ford, GM, KIA, ZAZ (Chevrolet cars), and TagAZ (Hyundai cars).

In addition to being a main OEM supplier, Avtopribor sells about 25% of its products to the aftermarket. The company has one of the strongest dealer network in Russia. Melnikov answered questions from Ed Richardson about expansion plans.

Automotive Industries (AI): Where is Avtopribor situated - how does this fit into logistics chains to Europe and the main automotive regions in Russia and neighbouring states?

Melnikov: Avtopribor is located on the transcontinental route - Moscow - Nizhni Novgorod- Ufa -, so the company has convenient automotive connection with all OEMs in Russia and also with large railway junctions and ports both of international and local importance.

AI: Are you looking to open more plants?
The main production area has two production building (11 000 sq.m and 16 000 sq.m.) with full engineering infrastructure which are not used at present. We are ready to consider offers for locating productions in these buildings.

AI: Please give more details of the kind of technology within your factories - we would like to give our readers an idea of the capabilities of your company.

Melnikov:The production area of the company is 160 000 sq.m. Avtopribor has production facilities for assembly; tool making; stamping; plastics processing; coating and painting; metal-cutting, metal- casting, galvanic and electroplating.

AI: What are the advantages of sourcing from Russia - where are you most competitive?

Melnikov: Showing stable high quality (the management system of the company is certified according to ISO TS 16949 quality system) our products have competitive prices. Besides, wide access to power resources allows to use in production power-intensive technologies.
AI: What kind of partnerships are you looking for with foreign investors?

Melnikov: We are ready to consider any offers, but Joint Venture or License Agreement forms of cooperation are more preferable for us.

AI: Where do you see the growth opportunities in the Russian market?

Melnikov: At present the Russian market is rapidly growing due to the fact that many word famous foreign OEMs such as Ford, GM, Renault, Toyota, VW and others build their factories in Russia. One of our strategic goals is to become a supplier to these OEMs.


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