9 Jun 2010 18:15

Bosch plans to boost Russian turnover by 25% in 2010 and return to 2007 results

MOSCOW. June 9 (Interfax) - 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 on Wednesday.

"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.

Shepf told Interfax that the company's 100% owned subsidiary OJSC Robert Bosch Saratov plans to increase production of spark plugs to 40 million units in 2010 and 50 million units in 2011, which is just under the Russian plant's design capacity.

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.