8 Sep 2010 15:23

Bosch boosts turnover forecast for Russia in 2010

MOSCOW. Sept 8 (Interfax) - Robert Bosch GmbH has improved its forecast for turnover in Russia in 2010.

OOO Robert Bosch's president Rene Schlegel total journalists on Wednesday that the company initially was hoping for 2010's results to equal that of 2007 (around 610 million euro) but now this figure could been reached six months earlier thanks to the improving economic situation. He noted the increase in sales of new automobile models in Russia.

The company is implementing projects with Tractor Plants and the GAZ Group in areas such as drive units, steering systems and hydraulic modules.

"Russia will be a very interesting market in the near future," he said, adding that Bosch expect car and LCV production to increase by 6% to 980,000 units while sales should rise to 1.8 million units.

"We expect an increase in sales of new vehicles in Russia reaching 1.8 million units. Russia is an enormous market for automotive technologies since half of the vehicle fleet is more than ten years old," he said.

Robert Bosch GmbH plans to increase its turnover in Russia in 2010 to the results posted for 2008, the deputy general director of OOO Robert Bosch, Walter Shepf, said in June.

"We are hoping for growth in comparison with 2009. Turnover in 2010 will be comparable to 2007's results," he said.

He added that the company's turnover in 2009 had decreased by3 1% to 489 million euro. In 2007, turnover came to around 610 million euro. Therefore, this figure could increase by 24.7% in comparison with 2009's results.

The company's turnover in 2011 could increase to 2008's results (around 708 million euro). Prior to the economic crisis, Rene Schlegel, the company's representative for Russia, Ukraine, Belarus and Kazakhstan announced in April 2008 that the Bosch Group intended to increase its Russian turnover to 1 billion euro

He also said that Bosch's Russian operation intends to become a supplier of automotive components to Sollers and Fiat's joint venture. In 2010, the company could start delivering Common Rail components for diesel engines produced at OJSC KamAZ .

Commenting on the supply of automotive components to other Russian plans, he said that negotiations have been underway but did not confirm the companies involved and when agreements could be reached.

Bosch recently started supplying ABS for UAZ vehicles, Shepf said. By year's end, the company plans to start shipping ABS to another Russian automaker, which Shepf declined to identify, stating that Siemens-produced ABS are used in several Avtovaz models.

He also said that the group plans to implement a project for constructing a head office in Moscow by the end of 2012 that would be worth 50 million euro.

The company's investment in Russia and other CIS countries in 2009 came to 16 million euro, up from 13 million euro in 2008.

The company's Saratov-based facility produces spark plugs for the following markets: Russia, the CIS, Bulgaria, Vietnam and Egypt.

Robert Bosch GmbH is a leading producer of car and industrial equipments, as well as consumer and household goods.