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Lada to launch welding, painting and components production in Kazakhstan

11 november 2011, 12:12
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Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Cars made by AVTOVAZ in ASIA AVTO shop. ©Yaroslav Radlovskiy
Assembling shop. tengrinews.kz stock photo
Assembling shop. tengrinews.kz stock photo
President of AVTOVAZ Igor Komarov signed a memorandum on strategic partnership with ASIA AVTO and ERTIS national company, Tengrinews.kz reports.

The plant is working on a project to create the biggest agroindustrial claster in Kazakhstan. The company is planning to construct a major facility for welding, painting and production of components for Lada cars to produce up to 120 thousand units per year.

"The sales prospects are very promissing,” Komarov said. I think that there will be a good demand for these cars in Kazakhstan, same as in Russia. The cars remain the most popular brand at the Russian market that requires an increase in production volume.”

Launch of the first stage of production (90 thousand cars per year) is scheduled for 2015, while the second stage (additional 30 thousand cars per year) will be launched in 2017. The market for car sales is quite broad: Kazakhstan, Siberia and Far East of Russia, Central Asian countries and Caucasus.

According to chairman of BIPEK AVTO group of companies Anatoliy Balushkin, partnership with AVTOVAZ is 15 years old. According to him, 2012 will be a critical year: “Lada is expecting an unprecedented update. AVTOVAZ will start producing several new models on a global Renault-Nissan-AVTOVAZ platform. The prices for Lada cars still remains the most attractive in the market, but the company will take the technologies and quality level to the next stage”. Balushkin noted that the most popular models of Lada will be produced in Ust-Kamenogorsk.

Head of AVTOVAZ is planning discuss supplies of the company's products to neighboring markets and prospects of state support of the joint project of AVTOVAZ and ASIA AVTO with Kazakhstan government.

The total volume of investments into the project is estimated at $514 million. The project will provide 12 thousand new jobs and $1.04 billion of export profit.

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