FinnvedenBulten Sets Up In Russia
12/20/2012 3:35:00 AM
FEATURE
FinnvedenBulten signed a final agreement with Automotive Components division of GAZ Group of Russia to form a fastener manufacturing company at GAZ Group’s plant Gorky Automobile Plant. The operation represents FinnvedenBulten’s first production facility in Russia.
“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 Bulten CEO Tommy Andersson.
FinnvedenBulten division Bulten will invest approximately EUR 7 million to become majority shareholder in the company, which will have a turnover of about EUR 11 million annually and is 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 collaboration may be subject to approval by the appropriate supervisory authorities. ©2012 GlobalFastenerNews.com
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