Sollers to invest 3 bln rubles in multibrand center at UAZ site

ULYANOVSK. July 10 (Interfax) - Sollers intends to invest at least 3 billion rubles in the development of a multibrand industrial center for the production of body-on-frame cars at the Ulyanovsk Automobile Plant site, the group said.

The cooperation agreement between Sollers and the region for the implementation of the project was signed at the Innoprom industrial exhibition in Yekaterinburg on Monday.

Sollers is obligated to set up full-cycle production of Sollers Argo LCV's, as well as new models of Sollers branded commercial vehicles between 2023-2025.

The document also highlights the creation of new capacities in the Ulyanovsk region for the production of high-tech auto components, the press release says.

As reported, the Russian automotive group announced the creation of the multi-brand industrial center based at UAZ in May. Sollers would install new production capacity for body-on-frame commercial vehicles in the UAZ industrial park.

LCV assembly has already started in a new building at UAZ through a separate legal entity called Sollers Cargo LLC. Construction and installation at UAZ of full-cycle production, including welding, cab painting, and assembly of the Sollers Argo, is now in its final stage. Assembly of this model, which currently takes place at the Sollers facility in Yelabuga, Tatarstan, will be fully transferred to the UAZ site. Production in Yelabuga will end.

Earlier, it was also reported that planned production capacities for this model are designed for over 10,000 vehicles per year within a five-year timeline. The total investment in the project was estimated at more than 1 billion rubles.

The Sollers Argo is a compact vehicle for urban transport, created on the basis of technology from China's JAC Automobile company.