Former Russian Scania subsidiary to open rep office with spare parts warehouse in China
MOSCOW. Aug 23 (Interfax) - The former subsidiary of Swedish truck manufacturer Scania, BVG LLC (formerly Scania-Rus LLC) plans to open a headquarters in China with a spare parts warehouse and a parking area, the company's press service said.
BVG signed a memorandum of cooperation with the Russian-Chinese Commercial and Industrial Park in Shenyang. The Chinese side will provide the partner with office and residential premises, as well as areas for storing and sorting spare parts and parking for trucks.
"The opening of a representative office in China will be an important step that will help us cope with the main problem for distributors of commercial vehicles in Russia, which is ensuring timely deliveries of high-quality spare parts. Having a spare parts warehouse and a site for the temporary storage of vehicles in the free trade zone in China will make logistics more predictable, understandable and efficient. Thus, we will be able to provide Russian dealers with the European level of service they are accustomed to," BVG CEO Alexander Tsypin said.
Since Chinese manufacturers of commercial vehicles often do not have a central spare parts warehouse, deliveries to Russia are chaotic: products are gathered up from different production and storage sites. In addition, there is no uniform packaging, he said. Spares are often sent in violation of the rules for packing fragile and heavy goods. There are also difficulties with the insufficient quality of the documents provided and the information contained in them.
BVG thus agreed with its Chinese partners to organize the acceptance of goods in China in order to avoid delays in delivery, reject damaged spare parts and reduce the time for checking documents.
Another issue that the BVG Chinese rep office will deal with is the reduction in the delivery time for trucks themselves. The Chinese trade zone makes it possible to quickly custom clear vehicles for export and subsequent transportation to Russia without delays at the border.
BVG plans to scale up its business in China and implement a number of other projects there, the press service quotes the CEO as saying.
BVG had been a Russian subsidiary of Swedish Scania (Scania-Rus LLC) since 1990. Last year, the company was sold to a Russian Scania dealer and renamed while maintaining the status of exclusive distributor for Scania in Russia and the rights to use the trademark. BVG employs more than 120 employees, and its dealer network consists of more than 60 representative offices. The company's central spare parts warehouse is located in Golitsyno near Moscow.