FinnvedenBulten and GAZ sign final agreement
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
Tommy Andersson, CEO, Bulten AB
Tel: +46 (0)31-734 59 00, e-post: email@example.com
Holtback, Chairman of the Board, FinnvedenBulten AB
Tel: +46 (0)70-548 68 18