A customs officer checks trucks at the Nord-Ost customs terminal, Moscow.
Photo: Vasily Shaposhnikov
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Import Parts Form Russia’s Trucks
St. Petersburg launched production of Yarovit trucks yesterday. The trucks were developed by Russian designers but 70 percent of their parts are of foreign-make and they cost as much as foreign analogues. The market leader KamAZ doesn’t fear competition.
Yarovit Motors was incorporated in Moscow in 1999. It was founded by individuals, previously engaged in selling Belarus and Russian vehicles. In 2003, the company’s stocks were bought out by private foreign funds, which set up two companies to implement the project - Trucks and Dumpers (the UK; bought out 49 percent) and Elgin Systems (the United States; acquired 51 percent).
Yarovit Gloros has a load capacity of 24-40 metric tones and is assembled in eight versions, namely: chassis, truck-tractor, dump truck, cement mixer, log carrier, short log truck, fire truck and a truck with a lifting crane. Gloros is equipped with Deutz, Cummins, Caterpillar engines, in line with the Euro-2/Euro-3 standards, and has Allison and ZF Friedrichshafen transmission. Though the truck is 70 percent made of foreign parts, St. Petersburg Arsenal and Shadrinsky Works (the Kurgan Region) ship certain components for its assembly.
The truck is assembled on facilities bought out from Leningrad Metal Works. Project investments have reached $40 million overall. In 2004, a few pilot trucks were assembled and sold to Fosphorit and GMK Norilsk Nickel. Currently, the company is in talks with Norilsk Nickel, ALROSA, Sibneft and Gazprom and is negotiating with some Near Abroad countries, including Tadjikistan, Kazakhstan, Turkmenistan. Depending on the version, the unit price may vary from ˆ130,000 to ˆ170,000. Alexander Samolazov, general director of Yarovit Motors, said the company expects to lease around 40 percent of produced trucks. 2005 target sets forth 250 unit production but the volume will step up to 1,800 trucks by 2009. “During a year and a half, we are counting on buying out Yarovit Motors stocks from foreign investors and will look for a strategic partner among world producers of such machinery,” said Andrey Biryukov, president of Yarovit Group.
In Russia, similar trucks are made by KamAZ and Bryansk works of wheeled tractors. KamAZ trucks cost around $50,000 each. According to ASM-Holding, both enterprises produced no more than 26 trucks last year. Actually, the overwhelming majority of such trucks in Russia are the used trucks of foreign make. KamAZ briefer Irina Bystrova claims the demand for trucks with 20-metric ton carrying capacity is booming and it was the reason why KamAZ started to produce 20-ton trucks in 2002, though previously it used to make the trucks with capacity less than 13 tons. KamAZ doesn’t appear apprehensive when it comes to the new competitor. “We are market leaders and welcome any competitors, for the ultimate choice will be made by the consumer,” KamAZ representative say.
The price for Yarovit could be compared with the cost of the import analogue vehicles. “Everything depends on the sales terms. If Yarovit offers advantageous lease, it may be of interest to large companies,” said Antonina Kamchatova from Association of International Automobile Carriers.
www.kommersant.com
All the Article in Russian as of Feb. 18, 2005
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