AvtoVaz's investment for 2011-2013 could come to 25 bln-27 bln rubles a year
MOSCOW. March 28 (Interfax) - OJSC AvtoVaz intends to earmark 25 billion-27 billion rubles a year for development in 2011-2013. In addition, the company hopes to raise 50 billion-60 billion rubles over three or four years, the automaker's president, Igor Komarov, told the business daily Vedomosti.
Komarov said: "We want so that we have a positive operation cash flow and we hope that revenues from operations will cover the bulk of investment. A financial injection of 50 billion-60 billion rubles over three or four years is needed - this is both borrowing and injections into charter capital. The debt level will be quite high and if the shareholders consider injected funds into the capital this would seriously improve AvtoVaz's financial model."
He added that it is necessary "to raise total investment noticeably to 25 billion-27 billion rules a year in 2011-2013. However, we foresee retaining almost the same amount of investment until 2020, and, primarily, thanks to saving on the construction of new capacity." In addition, Komarov said that AvtoVaz should double its number of engineers and designers for projects by the end of the year. Around 1,000 new employees will be hired. "We should find around 300 new specialists in the coming months and increase their number to 800-1000 people by the end of 2012," he said.
Commenting on the company's financial results, Komarov said that "we should have serious operational revenue and additional cash flow, this is no under discussion." He added: "For 2010, we received 2.1 billion rubles in RAS net profit compared to net losses in the previous year. Also we hope to post profit for the subsequent years. The 2011 budget foresees its increase in comparison with the previous year," he said.