Baku, Azerbaijan, Sept. 29
By Elena Kosolapova - Trend:
Russian AvtoVAZ and Kazakh Bipec Avto is building a joint car-making plant in Kazakhstan, the former company's message said.
AvtoVAZ will invest 25 percent of the project's cost, the remaining 75 percent will be invested by Kazakhstan's Bipec Avto. Moreover AvtoVAZ will provide management support and training assistance to the joint venture.
The construction has already started.
"In 2016, we will complete construction of the joint venture in Kazakhstan. It will produce all new models of LADA cars, including LADA Vesta," AvtoVAZ CEO Bo Andersson said.
About 50 percent of the cars produced by new enterprise will be exported to Russia, mainly to the Siberian region, he said.
Meanwhile Kazakhstan's Deputy Minister of Investment and Development Albert Rau said the project is supported by the Kazakh Government.
The capacity of the new enterprise will reach 120 cars per year. The investment volume to construct basic capacities is estimated to be $500 million. The development of the techno-park to produce vehicle components will require about another $630 million.
AvtoVAZ delegation arrived in Kazakh Ust-Kamenogorsk city on Sept. 28 to attend the ceremony of release of the 100,000th car at the Asia Avto plant. It was LADA 4x4, which, at the same time, became the 35,000th LADA car produced here.
Edited by T.T.
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