30 Nov 2023 09:56

Sollers to invest 1.5 bln rubles in localizing safety system components at UAZ plant

MOSCOW. Nov 30 (Interfax) - Safety System Components LLC (SSC), a subsidiary of Sollers Group in Ulyanovsk Region, plans to localize production of airbags, steering wheels, seatbelts and safety system electronic control units in the next two years at a cost of 1.5 billion rubles.

SSC chief executive Mikhail Noga signed an agreement to this effect with Ulyanovsk Region Governor Alexei Russkikh at the Russia forum at the VDNKh exhibition grounds in Moscow on Wednesday, Sollers reported.

Sollers has pledged to build new facilities at its UAZ industrial park by 2026 to manufacture passive safety system components that are vital for Russia's auto industry, the automaker said.

"This is a unique project for Russia's auto industry, foremost in terms of the localization of the components that we intend to produce. The level of product localization will be very high, including localization of magnesium alloys. No one has ever made them in Russia before. We already plan to launch production in the first quarter of 2025," Sollers Group CEO Nikolai Sobolev, who was present at the signing, was quoted as saying by the company's press service.

Sobolev said at a meeting with the governor at the forum that the magnesium alloys being localized have already undergone validation by Chinese technology partners.

"This is a comprehensive project that is foremost aimed at demand from Sollers Group plants. But we will also be prepared to supply our products for those major Russian automakers that are interested in localizing safety systems," Sobolev told the governor.

The governor said the development of the UAZ industrial park will have a positive impact on social and economic activity in Ulyanovsk Region.

"The company's investment will total 1.5 billion rubles in the first stage alone. The company will supply products to a number of automobile plants that are already operating and will also localize in Russia. On the part of the region, we will provide all the necessary assistance to the investor in securing measures of state support and will make every effort to promptly resolve issues with the implementation of the investment project," Russkikh was quoted as saying by Sollers' press service.

SSC was registered in Ulyanovsk at the end of September with charter capital of 1 million rubles and is wholly owned by PJSC Sollers. The new company will manufacture passive safety system components and develop the relevant engineering competencies.