KAMAZ OJSC Negotiates with Azerbaijani Enterprises on Vehicle Assembly

Business Materials 27 June 2007 13:16 (UTC +04:00)

Azerbaijan, Baku / Тrend corr I. Khalilova / The Azerbaijani Government is still considering the proposals on assembly of vehicles from KAMAZ OJSC, a trade representative of the Russian Federation in Azerbaijan, Yuri Shchedrin reported on 25 June. "The key is whether the Government will agree to provide privileges, in particular for taxes, tariffs and energy, needed for establishment of the joint enterprise," the trade representative said.

The assembly is a planned joint venture with a total production capacity of 1,500 vehicles per year.

According to Shchedrin, KAMAZ is already has an active part in the Azerbaijani market. The most of some 5,000 vehicles imported since the beginning of 2007 to Azerbaijan were KAMAZ vehicles, which enjoy a great prestige in the country. In 2007, 262 KAMAZ dump-trucks were imported to Azerbaijan. Moreover, an agreement of supply of chassis of KAMAZ vehicles has been signed. On the basis of special motor-technique for the needs of construction organizations of Azerbaijan will be reconstructed. According to Shchedrin, talks on the matter are in progress with the Sardarov engineering plant and AzMOTORS Co Ltd (Azerbaijani Government imposes cooperation with KAMAZ on this company). At first there are plans to begin the production of five vehicles a month.

Azerbaijani AzMOTORS Co Ltd was an official dealer of KAMAZ until 2006. The company was engaged in the organization of production and sale of KAMAZ trucks in Azerbaijan. However, from the beginning of cooperation only 250 vehicles have been sold. Earlier the company supplied 80 vehicles per year.