Kamaz and Fiat
MOSCOW. Oct 8 (Interfax) - OJSC Kamaz and Case New Holland (CNH), a subsidiary of the Fiat Group, have signed an agreement to form a joint venture for the production of agricultural and building equipment in Russia.
The agreement was signed by the general director of Rostekhnologii (the co-owner of Kamaz), Sergei Chemezov, and the head of Fiat Group Sergio Marchionne.
Russian Prime Minister Vladimir Putin was present at the signing ceremony.
The new enterprise, in which both parties will hold equal shares, will produce several CNH models, including tractors, combines and excavator-loaders. The facility's assembly line will be launched at the start of 2010. The company will produce up to a thousand units a year.
Assembly will be organized a Kamaz's production facility in Naberezhnye Chelny. Following the project's first phase, production will be localized at 18%-35%. This process will take up to half a year.
Initial production will take place over 30,000 square meters, which will be expanded to 70,000 square meters.
Putin said: "the signing of today's document is another step forward in the development of partnership between Russian and Italian partners." "Fiat's Dutch subsidiary, which produces agricultural and construction equipment, is one of the recognized world leaders," he said, adding: "it [the company] has well proven itself in Russia."
Case New Holland manufactures agricultural and construction equipment under the Case and New Holland brands. It has about 11,500 dealerships in 160 countries.