The Bosch Group has laid the foundation stone for its new plant in Russia: from 2015, Bosch automotive technology will also be rolling off the assembly line in Samara.
The site itself covers a total surface area of some 200,000 square meters, the equivalent of about 29 soccer fields. The buildings will offer some 22,000 square meters of floor space and will be used for manufacturing, administration, and logistics. They will also house the site's power and media supply as well as a cafeteria. By the end of 2016, the global supplier of technology and services will have invested some 50 million euros in Samara. When work is completed, some 500 associates will be working there.
As a result of low vehicle density and vehicle age - almost every second car in Russia is older than ten years - Bosch expects the country's annual vehicle production to grow continuously, from almost two million today to some three million in 2020. "The new manufacturing site in Samara is the next step in our long-term strategy. We aim to expand our presence in this region and seize the opportunities that the market offers," says Gerhard Pfeifer, president of the Bosch Group in Russia and CIS, at the official laying of the foundation stone. "This investment reflects our positive expectations of the Russian market."
Nikolai Merkushkin, the governor of the Samara region, is also pleased about the Bosch Group's investment. "The commitment of a major global player like Bosch is significant for the Samara region's economic and social development. The location is becoming more attractive for investors and local specialists alike," Merkushkin said.
Production for local customers
Until now, the Chassis Systems Control, Starter Motors and Generators, and Diesel Systems divisions have been present in Samara. In the future, the Electric Drives division will also have a home here. With the new plant, Bosch aims to manufacture automotive technologies primarily for local customers. These will include, for instance, anti-lock braking systems, starters and generators, common rail injectors for commercial vehicles, and windshield wiper systems. "By adding another local production site, we will be closer to our customers and will thus be better able to respond to their needs," said the Bosch representative Gerhard Pfeifer. "The location in the European part of Russia is perfectly suited to this aim, not least because of the region's highly-qualified specialist workforce and excellent infrastructure."
Presence in Russia
The Bosch Thermotechnology division is currently building a new manufacturing site at its Engels location. From the summer of 2014, Bosch and Buderus wall-hung boilers and industrial-scale boilers will be produced there. Bosch's Automotive Aftermarket, Gasoline Systems, Diesel Systems, and Power Tools divisions already have a presence in Engels. After Engels, Samara will be the second Bosch plant to manufacture automotive technology in Russia. In addition to this, Bosch is investing more than 100 million euros in its new Russian headquarters in Moscow, which will have a total floor space of 57,000 square meters. The official opening of the new headquarters is scheduled for the second half of 2014.
Bosch has been present in Russia since 1904. The country was one of the first outside Germany in which a sales organization was established. The Bosch Group locations in Engels, Togliatti, and St. Petersburg manufacture automotive equipment, power tools, packaging technology, and household appliances. Once thermotechnology production begins, all four Bosch business sectors - Automotive Technology, Industrial Technology, Consumer Goods, and Energy and Building Technology - will have a presence in Russia. With its more than 3,000 local associates, the company generated sales of about one billion euros in Russia in 2012.
