5 Dec 2018 10:35

Russian ministry to create casting group, engineering center to develop aluminum auto components

MOSCOW. Dec 5 (Interfax) - Russia's Industry and Trade Ministry is exploring the issue of establishing an integrated aluminum casting group and engineering center that would develop technology to manufacture aluminum castings for the automotive industry.

An agreement has already been reached on the need to set up and develop an engineering center for casting of aluminum components based on the NAMI automotive research institute, the ministry said in a statement.

"Prototypes of specific products will also be created and tested within the context of the center. Additionally, a partner will be chosen with competencies in tool manufacturing as well as experience working with the main manufacturers of casting equipment," Industry and Trade Minister Denis Manturov was quoted as saying.

Work is now underway "on determining the functions, structure and organization of the casting holding," he said.

"I'll point out that state support for the project can be implemented within the context of existing mechanisms that the Industry and Trade Ministry of Russia has at its disposal: subsidies for a portion of costs on R&D, manufacturing pilot batches of equipment and payment of interest on loans, as well as the Industrial Development Fund's participation in financing the project," Manturov said.

The concept for creating the casting group calls for establishing up to four production facilities, the ministry said.

"The Aluminum Association has now done calculations of financial and economic models for facilities based at [leading Russian carmaker] Avtovaz , Bryansk Automobile Plant (BAZ) and Volgograd Aluminum Smelter. Additionally, calculations will be done for facilities at the Alabuga special economic zone and [truck maker] Kamaz ," the ministry said.

The ministry also said it will "conduct work with the involvement of [state development bank] VEB and commercial banks" to raise soft credit "after the formation of a pool of participants of the casting production association, and the determination of an arrangement for their relations and cooperation."