18.11.2021
UAZ LLC commenced the final stage of a comprehensive three-year restructuring program, the key objective of which is to concentrate within the Company only the assets and competencies of a modern car manufacturer based on a model applied in the global car industry. The perimeter of these assets includes presswork, welding, body painting, and assembly of vehicles.
PromFinInvest LLC, a new company, will be spinned off at the final restructuring stage. SOLLERS Auto PJSC will become a sole shareholder of PromFinInvest with 100% of shares.
PromFinInvest will focus on the maintenance and modernization of the secondary assets and the infrastructure at the industrial site of UAZ, as well as supporting the auxiliary operations. The main goal of the spinoff is to develop these assets through attracting third-party investors, reorienting for new industrial sectors, and setting up promising advancement forms including industrial parks and technoparks for small and medium businesses. As a result of the reorganization, UAZ will retain all necessary cooperation ties but will significantly improve the competitiveness of its core automotive business by reducing overhead costs. No personnel cuts are planned and wages and employee benefits under the collective agreement will not change.
It is to be recalled that starting 2019 a business-processes optimization started at the Ulyanovsk Automobile Plant as a result of which its departments were reorganized as separately-run business units based on their specific activities. For instance, apart from the products covering the needs of the Ulyanovsk Automobile Plant, UAZ Autocomponent also provides a wide range of metallurgical products for Russian Railways OJSC, Hyundai Motor Manufacturing Rus, Schaeffler, etc. UAZ Mechanical Assembly Production LLC, UAZ Technical Instrument LLC, and Smithey Technologies R&D Centre LLC have spinned off starting 2021.
