FinnvedenBulten and GAZ sign final agreement
Gothenburg, Sweden, December 20, 2012
The Automotive Components division of GAZ Group, which is Russia's largest manufacturer of commercial vehicles, and FinnvedenBulten announce today that they have signed a final agreement to form a company for manufacturing fasteners at GAZ Group's plant Gorky Automobile Plant. FinnvedenBulten thereby establishes its first production facility in Russia.
FinnvedenBulten’s division Bulten will through investments of approximately EUR 7 million become the majority shareholder in the company. The operations to be included in the company currently have a turnover of about EUR 11 million annually and are expected to have significant growth potential both short-term and long-term. The company will be a consolidated subsidiary within the FinnvedenBulten Group.
The company will develop and produce fasteners for the automotive industry in Russia and the Commonwealth of Independent States (CIS). The company will also supply fasteners to Bulten’s global customer base with existing production facilities in Russia. Production is planned to start by the end of 2013.
Gorky Automobile Plant, which manufactures fasteners for Russian customers, will provide the infrastructure for production while Bulten, which supplies fasteners to the global automotive industry, will be responsible for developing new products, new technology and distribution.
"The potential of the Russian market is expected to be significant. We have noticed a great interest from new and existing customers since the announcement of the Letter of Intent in the spring of 2011. The trend among international OEM's is to establish production in Russia", says Tommy Andersson, CEO of Bulten.
The collaboration may be subject to approval by the appropriate supervisory authorities.
For further information, please contact:
Tommy Andersson, CEO, Bulten AB
Tel: +46 (0)31-734 59 00, e-post: email@example.com
Roger Holtback, Chairman of the Board, FinnvedenBulten AB
Tel: +46 (0)70-548 68 18
The information in this announcement is required to be disclosed by FinnvedenBulten AB (publ) under the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08:59 CET on December 20, 2012.
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Bulten and Finnveden Metal Structures – both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com.
Division Bulten is one of the largest suppliers of fasteners to the European automotive industry. The product range spans from customer specific standard products to customised special fasteners and comprise technological development, logistics, materials and production know how as well as full FSP concepts. Further information at www.bulten.com.
GAZ Group (www.gazgroup.ru) is Russia's largest manufacturer of commercial vehicles. The Company produces light- and medium-duty commercial vehicles, heavy-duty trucks, buses, cars, powertrain and automotive components. GAZ Group is the leader in the commercial vehicles market in Russia with about 50% in the LCV segment, 58% in the medium-duty trucks segment, 42% in all-wheel-drive heavy-duty trucks segment, and about 65% in bus segment (data as of 2011). The revenue of GAZ Group in 2011 was RUR 132.4 billion; EBITDA was RUR 14 billion; and net profit was RUR 8.5 billion. The controlling shareholder of the Company is Russian Machines Corporation, part of Basic Element business group. The headquarters of GAZ Group is located in Nizhny Novgorod. Press-service of GAZ Group NataliaVA@ruspromauto.ru, MariaVK@ruspromauto.ru