OREANDA-NEWS. October 22, 2009. Federal Mogul Naberezhnye Chelny Russian-American Joint Venture launched its production of cylinder-and-piston details at KAMAZ.

Joint Venture with equal shares of the parties in the authorized capital will produce pistons, piston rings and cylinder liners for internal combustion engines.

Federal Mogul Naberezhnye Chelny will reach its full capacity in 2011 when the annual production volume is 2.8 billion roubles. The enterprise will fully meet the requirements of KAMAZ in cylinder-and-piston details for engine production. Casting and machine working will be carried out at KAMAZ, therefore production localization will reach 90% at once.

According to Sergey Kogoghin, all products of OOO Federal Mogul Naberezhnye Chelny will be purchased by KAMAZ on the initial stage of JV’s development, and the quantum of output will be determined by the requirements of KAMAZ production and orders for spare parts (cylinder-and-piston details).

“We are extremely glad that our new joint venture we established with KAMAZ, the leading Russian heavy truck producer, is developing”, - said Rainer Jueckstock, Senior Vice President, Federal Mogul, - “The successful marketing policy of KAMAZ and its working knowledge of engine production engineering in combination with the leading innovative technologies and qualification of Federal Mogul as a supplier of transmissions and auto components of the world class will add really competitive consumer decisions to the trade sector. This partnership is strategically important for Federal-Mogul to develop the work with customers in the sphere of marketing and production diversification.”

The joint venture intends to become a large supplier of cylinder-and-piston details not only for KAMAZ enterprises, but also for other Russian and CIS automobile enterprises.

It should be recalled that on March 10, 2008 an agreement between Federal Mogul Corporation (USA) and KAMAZ Inc. on establishment of OOO Federal Mogul Naberezhnye Chelny JV was signed in Kazan. Jose Maria Alapont, President and CEO, Federal-Mogul, and Sergey Kogoghin, Director General, KAMAZ Inc., put their signatures to this document. Before that, on November 30, 2007, the Memorandum of joint venture establishment to produce piston assemblies was signed in Naberezhnye Chelny.

The enterprise is unique because the foundry and machining process complexes are located in one place.

OOO Federal Mogul Naberezhnye Chelny is the fourth joint venture on the production basis of KAMAZ with the participation of foreign partners. The first one was OOO ZF KAMA already in 2005, the enterprise producing gearboxes. In a year OOO CUMMINS KAMA Russian-American Joint Venture was created for engine production, and OOO KNORR-BREMSE KAMA was established by KAMAZ and one of the global leaders in the sphere of brake production – Knorr-Bremse Systeme fьr Nutzfahrzeuge GmbH (Germany) in 2007.

Participation in joint ventures is an effective way for KAMAZ to solve problems of a “price – quality – timely delivery” ratio. The work of the enterprises producing automobile components on the company’s premises ensures high quality of production at competitive prices, in comparison with European parts.