Mazda-Sollers JV signs special investment contract on engine plant in Vladivostok
VLADIVOSTOK. Sept 2 (Interfax) - The joint venture between Japanese Mazda Motor Corporation and Russian Sollers , Mazda Sollers Manufacturing Rus LLC, has signed a special investment contract with the Industry and Trade Ministry covering construction of a plant in Vladivostok with capacity to manufacture of 50,000 engines a year.
Industry and Trade Minister Denis Manturov and Mazda Senior Managing Executive Officer Yuji Nakamina signed the contract on Friday at the Eastern Economic Forum.
The engine manufacturing will begin in late 2018, a Sollers representative said. The plant will be built on the joint venture's territory.
Under the contract Russia provides the JV with guarantees that the terms for conducting business and state preferences will remain unchanged.
"This project is fully integrated into Mazda's operational chain. The main output from this enterprise will be exported," Manturov said during a visit to the JV.
The contract will remain in effect up to the end of 2023. Under its terms, the carmaker assumes responsibility for building the production facility in Vladivostok. The engines it produces will be exported and used to equip the vehicles the JV manufactures.
The signing of the contract was "a key factor in Mazda Motor Corporation's decision to organize engine manufacturing in Russia," he said.
Under the contract, the investor guarantees to invest over 2 billion rubles to organize manufacturing with capacity to produce 50,000 engines a year, including localization of a number of technological operations concerning basic engine components. Russia undertakes "to facilitate in every way development of the company's project in Vladivostov by implementing state support measures." The project will create over 600 jobs.