GAZ Group and FinnvedenBulten Agree to Establish a Joint Venture in Russia
NIZHNY NOVGOROD, RUSSIA/GOTHENBURG, SWEDEN, 5 April 2011. Automotive Components Division of GAZ Group, Russia's largest manufacturer of commercial vehicles, and the international industrial group FinnvedenBulten today announced the signing of a letter of intent to establish a fasteners joint venture at the GAZ Group facilities of Gorky Automobile Plant, whereby FinnvedenBulten gets its first production site in Russia.
The parties will determine the full scope of the joint venture at the end of this year, and production is planned to start in 2012. The joint venture, which is made through the Automotive Components Division of the GAZ Group and the Bulten division of FinnvedenBulten, will develop and manufacture fasteners for the automotive industry in Russia and the CIS. It will also supply fasteners to Bulten’s global customer base with production in Russia.
Gorky Automobile Plant, which manufactures fasteners for Russian customers, will provide production and distribution infrastructure, whereas Bulten, which supplies fasteners to the global automotive industry, will provide the development of new products and technologies.
“As one of the world’s foremost suppliers of fasteners, Bulten estimates the potential of the Russian market to be significant. High import duties in Russia and high demand for quality products create great opportunities of efficient development for local manufacturers. The experience and competence of GAZ will benefit Bulten greatly in the process of producing high-quality fasteners in Russia,” commented Tommy Andersson, CEO of Bulten.
“Through the cooperation with Bulten, the working equipment of Gorky Automobile Plant used in fasteners manufacture will be significantly upgraded. The creation of high-tech components production at GAZ aimed at a wide range of customers is provided for by Automotive Components Division’s development strategy. Implementing this strategy, in 2010 the Division increased supplies to external customers by 70% in comparison with 2009; these include automakers, transportation companies, companies in aviation and other industries,”, said Bo Andersson, President of GAZ Group.