GAZ Group a part of Russia's biggest business group Basic Element,and Bulten,Swedish manufacturer of fasteners,a part of FinnvedenBulten international industrial group,have announced signing a joint-venture agreement to manufacture fasteners at GAZ.FinnvedenBulten thereby establishes its first production facility in Russia,which will also become the first Russia-based manufacturer of world class fasteners.
FinnvedenBulten's division Bulten will invest approximately EUR 7 million.The operations to be included in the joint venture currently have a turnover of about EUR 11 million annually and are expected to have significant growth potential.
The joint venture will develop and produce fasteners for the automotive industry in Russia and CIS.The company will also supply fasteners to Bulten's global customers having existing production facilities in Russia.Production is planned to start by the end of 2013.
Gorky Automobile Plant will provide the infrastructure for production while Bulten will be responsible for developing new products,new technology and distribution.
Mr Bo Andersson,President\CEO of GAZ Group said that"Through cooperation with Bulten we will get access to advanced experience in fasteners manufacturing and upgrade production equipment of Gorky Automobile Plant.These technologies will be used in building GAZelle-BUSINESS and the brand new product GAZelle-Next.Therefore,the joint project will help us enhance the reliability of GAZ commercial vehicles range."
