7 Dec 2010 17:23

KamAZ affirms output growth forecast at 22%-25% for 2010

MOSCOW. Dec 7 (Interfax) - Russian truck-maker OJSC KamAZ intends to build and sell in Russia 28-29,000 vehicles this year and export 4,000, for a 22%-25% increase from last year.

"I think that we will turn out 22%-25% more than last year. Quite a bit depends on December, but things are shaping up pretty nicely. Overall output this year is planned at 32,000. Of that 4,000 will be for export. Compared with 13,000 in 2007, exports, of course, have fallen," the company's General Director Sergei Kogogin said during a Russia 24 television interview.

"The pre-crisis level has yet to be regained. The market doesn't allow it. But in general the market is becoming very good. Growth rates are quite good, and we are striving to get back on our feet with time. We continue to be the market leader - we should get around 50% this year. We are pleased with this year overall," Kogogin said.

KamAZ's main export markets had been Kazakhstan and Ukraine, he said. "The Kazakh market is recovering now. The Ukrainian market is rising and falling again. We had to reorient the structure of our exports. If you look at KamAZ exports in the pre-crisis period, three quarters was the CIS [Commonwealth of Independent States] and a quarter the far abroad [non-CIS countries]. This year we are exporting more than 50% to the far abroad. That trend continues," he said.

On the issue of working with Daimler, Kogogin said, "There was an interruption this year. They are transferring technology to us. We have full mutual understanding on all investment projects."

"I hope that next year we'll present an industrial-testing consignment of KamAZ automobiles that will have a large number of parts and components from Daimler," Kogogin said, and the company might also next year turn out a consignment of armored Iveco vehicles.

"Next year there will be an industrial-testing consignment of armored Iveco automobiles made at KamAZ and gradual localization will be taken to 50%," he said.

KamAZ is also looking to launch its own program of truck-scrappage next year. "The scrappage program has yet to find its own continuation, but there is intent to work on this subject. Our company today works independently under a scrappage program that we will announce next year," Kogogin said.

OJSC KamAZ is the parent company of a group that builds trucks. It sold 47,700 in 2008 and around 26,000 last year.