Vnesheconombank to Finance Production of KAMAZ Engines
OREANDA-NEWS. December 24, 2010. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and Open Joint Stock Company KAMAZ entered into a Credit Agreement. On behalf of Vnesheconombank the Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of KAMAZ (OJSC) – by its Director General Sergei Kogogin.
Under the Agreement Vnesheconombank is to provide KAMAZ (OJSC) with credit resources in the total amount of 1.7 billion rubles to implement the investment project aimed at setting up the production of 4- and 6-cylinder engines with a swept volume of 4 to 7 liters. The project’s total value is 3.5 billion rubles.
The project provides for setting up the production of Cummins diesel 140-300 horse power engines. To this end, Vnesheconombank is to finance KAMAZ’s purchase of equipment required to manufacture 40 thousand engines per year for KAMAZ automobiles. Under the project main engine parts are planned to be manufactured locally. Earlier they were supplied by subdivisions of the American Cummins Inc.
Cummins Kama Joint Venture (CJSC) is the project’s operator. It was founded by OJSC KAMAZ and Cummins Inc.