OREANDA-NEWS. On 10 March the agreement on Joint Venture establishment between Federal-Mogul Corporation (USA) and KAMAZ Inc. was signed in Kazan.

Jose Maria Alapont, President and CEO of Federal-Mogul Corporation, and Sergey Kogogin, Director General of KAMAZ Inc., signed this agreement. Rustam Minnikhanov, Prime-Minister of the Republic of Tatarstan, also took part in the ceremony.

On 30 November of 2007 the memorandum of joint venture establishment to produce piston assemblies was signed in Naberezhnye Chelny.

According to the investment project of the joint venture OOO “FEDERAL-MOGUL Naberezhnye Chelny” having equal shares of the parties in the authorized capital will be settled down at KAMAZ.

It is planned that already in September 2008 “FEDERAL-MOGUL Naberezhnye Chelny” will launch the first production of piston assemblies. The number of the personnel planned is in excess of 350 persons.

ООО “FEDERAL-MOGUL Naberezhnye Chelny” will produce piston assemblies corresponding to Euro-3, Еuro-4 standards. On the initial stage, the main end-user of JV products will be KAMAZ Inc. But the enterprise will gradually make sales increase in the Russian market as well. OOO “FEDERAL-MOGUL Naberezhnye Chelny” will become a large producer of piston assemblies for KAMAZ Group, as well as for other automobile manufacturers of Russia and the CIS. In the future the volume of outside deliveries will make up no less than 30% from the production volume.

ООО “FEDERAL-MOGUL Naberezhnye Chelny” will pay a large amount of tax to the federal and regional budgets.

ООО “FEDERAL-MOGUL Naberezhnye Chelny” is already the fourth JV between KAMAZ Inc. and the world leading manufacturers of auto components. There was established JV OOO “ZF-КАМА” in 2005, JV OOO “CUMMINS-KAMA” in 2006 and JV ООО “KNORR-BREMSE КAMA” in 2007. Through expansion of cooperation with the leading manufacturers КАМАZ Inc. is getting integrated into the world automobile industry. The company is carrying on the intensive negotiations with other auto component manufacturers.