The Russian car market will have doubled to 4 million cars by 2011, according to early estimates.
Photo: Sergey Mikheev
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BASF to Build a Plant outside Moscow
BASF is set to build a plant in Russia to produce catalysts and catalytic converters for cars. Entering this new segment of its business in Russia, the German concern is investing in rapidly developing car production, and its products are sure to be in demand elsewhere.
BASF is set to build a plant to output catalytic converters in Krasnogorsk District in Moscow Region, a Kommersant source in the company reported. The factory will be producing up to 2 million Engelhard catalysts a years. The construction is about to start, according the source said. BASF confirmed the reports but gave no details.
BASF has apparently decided to focus on the growing market of foreign car make production in Russia. The concern earlier announced the construction of a factory in Pavlovsky Posad producing paints for automobile production.
BASF will invest from $20 to $30 million in the construction, said Mikhail Blokhin, director general of the National Autopart Producers Association. The annual output of 2 million catalysts is not a big figure consider the fact that plants of Toyota, Nissan, General Motors, Renault and Volkswagen are to be in full operation by 2011. By that time the Russian car market will have doubled to 4 million cars, Ernst & Young estimated. A part of the output at the new plant of BASF is likely exported, Mr. Blokhin said.
www.kommersant.com
All the Article in Russian as of Mar. 19, 2007
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