Vladivostok, 7 September 2022 — SOLLERS Alabuga LLC, a SOLLERS Auto PJSC’s subsidiary company (100%), is to launch production of two new LCV models within the Alabuga special economic zone (SEZ) in 2022.
An amendment agreement to SOLLERS Auto PJSC’s existing special investment contract for implementation of this project was signed today in the framework of the Eastern Economic Forum. The document was signed by Denis Manturov, the Deputy Prime Minister and Minister of Industry and Trade of the Russian Federation, and SOLLERS Auto PJSC’s General Director Nikolay Sobolev.
The project will involve manufacture of two light commercial vehicle (LCV) models of cabover and semi-cabover design, GVW between 2.5 and 4.5 tonnes, at the Alabuga SEZ manufacturing complex. New line production is due to be launched by the end of this year and the LCVs will enter the Russian market under the SOLLERS brand.
According to Denis Manturov, “By launching production of these LCVs, SOLLERS Auto PJSC will fill the vacuum left by the suspended production of Ford Transit in Russia, expand product range in the market segment, and meet the steady demand for commercial vehicles from Russian consumers.”
“Maintaining strategic leadership in the light commercial vehicle segment remains the key priority of SOLLERS Auto. The launch of an LCV line under our own brand will mark a new stage in this strategy”, says Adil Shirinov, Chairman of the Board of Directors.
Under the modified special investment contract, SOLLERS Auto undertakes to ensure a high level of localisation of new products, including the manufacture of diesel engines, press forging, localisation of key electronic modules, chassis parts and plastic products. A significant part of the project’s localisation programme will be implemented through the development of existing supplier enterprises within the Alabuga SEZ, as well as the creation of new such enterprises.
According to Shirinov, the new LCV production project will provide jobs for all current employees of Sollers Ford, which has suspended its operations in the Russian Federation, i.e., the team will not be downsized. Another important aspect of the project is the planned creation of a separate SOLLERS Auto R&D and Product Development Centre in Tatarstan, which will bring in Russian and foreign engineers, and graduates of specialised technical universities in Tatarstan and other regions of Russia. The objectives of the Centre include further developments, new modifications and expansion of product range in the LCV segment, as well as engineering support for a large-scale localisation programme that encompasses the whole range of LCVs produced.
Total investments in the new project, including investments to be provided by Sollers Alabuga LLC and supplier companies, is expected to exceed 5.5 billion roubles. The special investment contract will see SOLLERS Auto PJSC’s total investment obligations grow from 7 to 9.9 billion roubles.