Kamaz, Moscow agree to equal participation in Moskvich auto plant, 5 bln rubles of investment
MOSCOW. Aug 2 (Interfax) - Russian truck maker Kamaz and the Moscow city government have agreed to equal distribution of equity stakes in the Moskvich automobile plant (formerly Renault Russia) and 5 billion rubles of investment in its development.
The agreement, signed by Kamaz CEO Sergei Kogogin and Mayor Sergei Sobyanin, has been posted on city hall's website.
The agreement provides that a 50% stake in the plant, which is now wholly owned by Moscow, can be transferred to Kamaz or an "affiliated or other party proposed by them under a share purchase-sale contract" by October 1, 2022. The co-owners of the plant are also supposed to sign a shareholder agreement by this date.
Moscow and Kamaz have pledged to provide 5 billion rubles of financing for the plant in proportion to their stakes within two months after the transfer of the 50% stake in Moskvich to the new co-owner.
The agreement also specifies that at least 600 automobiles will be produced at the plant by the end of this year, including 200 electric vehicles. In 2023, the plant is supposed to produce at least 50,000 cars, including 10,000 electric vehicles, and by the end of 2024 it is supposed to be producing at least 100,000 vehicles per year, including 20,000 electric cars. Moskvich plans to establish completely knocked down assembly by 2025.
Kamaz and the city have agreed to retain the staff of the former Renault plant, numbering 3,800 employees, and develop a dealership network and post-sales servicing.
Kamaz's press service confirmed the signing of the agreement with Moscow, but did not specify how much the truck maker itself plans to invest in the Moskvich plant's development. The company also did not comment on the price of the deal.
In mid-May, Renault handed its Moscow plant, Renault Russia, to the city government and its 67.7% stake in Lada Auto Holding LLC, the joint venture that controls leading Russian carmaker Avtovaz , to Russian institute NAMI. After the handover, the Moscow plant was renamed JSC Moscow Automobile Plant Moskvich.
The city announced plans to set up production of cars under the Soviet-era Moskvich brand at the plant with Kamaz involved in the project's preparation. Business daily Vedomosti, citing sources, reported that Kamaz's partner on the Compass light duty trucks, China's JAC might start DKD assembly of cars at the Moskvich with subsequent deepening of localization.