23 Dec 2010 16:51

VEB to lend Kamaz 1.7 bln rubles for engine production

MOSCOW. Dec 23 (Interfax) - Vnesheconombank (VEB) and Kamaz Thursday signed an agreement for a loan of 1.7 billion rubles to develop engine production, a Kamaz spokesman said.

Reports said at the beginning of August that VEB might lend Kamaz up to 10 billion rubles to design new engines, gearboxes, cabs and an all-wheel drive truck. Kamaz had already invested 3.7 billion rubles in those projects.

The Kamaz Group includes some 90 enterprises in Russia, the CIS and elsewhere, and assembly plants in Kazakhstan, Vietnam, Iran, Pakistan and India. The company had 56.5% of the Russian market for trucks weighing over 14 tonnes in 2009.

Truck sales fell to 26,000 in 2009 from 47,500 in 2008 and should total 32,000 in 2010. They are targeted to ruse to 67,000 in 2015 and 100,000 in 2020, with 20% and 30% of the respective totals exported.