Outline · [ Standard ] · Linear+ Renault investeste 150mil.$ in fabrica Avtoframos, info.

In order to reinforce its presence in the Russian market, Renault is to invest USD150 million to increase the production capacity of its Avtoframos factory in Moscow • Luc Alexandre Ménard, Renault's Senior Vice-President, Public Affairs and Euromed* Regional Leader, and Youri Loujkov, the Mayor of Moscow, represented by his First Deputy Vladimir Resin, today signed a heads of agreement of intention to increase the production capacity of the Avtoframos factory, Moscow, from 80,000 to 160,000 vehicles per annum. • According to the terms of the agreement, Renault will invest USD150 million, while the City of Moscow will provide land and buildings with a planned mid-2009 production start-up date. • In addition to Logan Sedan, new Logan Programme models will be produced at the Avtoframos factory. In light of Logan's success in Russia and given the strong potential of this market, Renault has decided to increase the production capacity of its Avtoframos factory to 160,000 vehicles per annum from mid-2009, and also to extend production to include new models of the Logan Programme. This decision marks a new phase in Renault's development in Russia following the creation of a manufacturing and sales subsidiary in 1998, the launch of Logan production in April 2005 and the model's sale from July 2005. Since July 2005, more than 56,000 Logans have been sold in Russia. Designed to meet to the needs of customers looking for a spacious, strong, reliable and inexpensive car, it has appealed particularly to Russian customers who are keenly aware of criteria such as quality, price and running costs. Today's announcement that production capacity will be doubled, which itself follows the decision to step up from 60,000 to 80,000 vehicles per annum from mid-2007, will enable Renault to meet to the demand of a market that has recorded two-figure annual growth rates for the past five years. * Bulgaria, Moldavia, Romania, Armenia, Belarus, Georgia, Kazakhstan, Russia, Ukraine, Turkey, Cyprus, Turkey, Algeria, Morocco, Tunisia. Inaugurated in April 2005, the Avtoframos plant will be extended to take in the neighbouring land of the former OAO Moskvitch factory. Within the framework of the cooperation between Renault and the City of Moscow, it is planned that the City of Moscow will contribute the land and buildings and that Renault will invest USD150 million in the renovation of the site and the establishment of new facilities. This investment comes on top of the USD250 million initially committed to the construction of the Avtoframos factory. Parallel discussions are also continuing with a view to a future cooperation with Avtovaz. Renault, the leading European carmaker in Russia With a 7.7 per cent share of total foreign brand sales, Renault is currently the sixth best-selling foreign carmaker. It is also the leading European carmaker in Russia. In 2006, Renault sold 72,484 cars in Russia, an increase of 148 per cent over 2005. Logan, the sales of which amounted to 49,323 cars in 2006, accounts for 68 per cent of the Renault Group's sales and has emerged as the second best-selling foreign model in Russia. With a score of 17 and 7.8 per cent respectively, Mégane and Clio Symbol are the other cornerstones of the brand's success. Renault has developed a distribution network that today includes 71 dealerships and a total of 91 points of sale in 55 cities. This network covers practically all Russian cities with a population of more than 300,000. Inaugurated in 1999, the staff training centre for technical coordinators – the people behind the after-sales service's quality – has to date trained more than 2,000 staff, while a central spares warehouse enables dealers to take delivery of parts within 48 hours of their order. Last but not least, Renault Assistance, which provides a technical assistance service to motorists, has been operating in Russia since 2001 to ensure that Russian customers can count on the best after-sales service quality possible. RENAULT IN RUSSIA 1916 Establishment of Russky Renault, a joint stock company based in Saint Petersburg which was nationalized after the revolution. 1966 A series of agreements signed covering the engineering, supply and production of equipment. The principal agreements signed between 1966 and 1983 included those with Moskvitch (cars), Kamaz (trucks), Kharkov (tractors) and Pskov (sewing machines). 1968 Establishment of a representational office in Moscow. 1998 Establishment of Avtoframos, a Russian-registered company with an initial capital of 124 million roubles (€4.6 million). Renault and the City of Moscow had equal shares in the company, the mission of which was the production and sale of vehicles in Russia. 2000 The capital of Avtoframos increased to €90 million. The City of Moscow's contribution takes the form of land and buildings. Renault's takes the form of cash. 2003 February: Renault announces its decision to invest €230 million in the construction of the Moscow factory (renovation of buildings and installation of production equipment) with a view to producing Logan. November: Renault and the City of Moscow increase capital by €30.5 million to finance the project. 2004 The Avtoframos factory built. October: in an auction, Renault acquires the 26 per cent stake in Avtoframos relinquished by the City of Moscow. The transaction takes Renault's share in the capital of Avtoframos to 76 per cent. The City of Moscow holds 24 per cent. 2005 Logan launched. Production at Avtoframos is based on Completely Knocked Down kits (CKDs) using parts produced either by local suppliers in Russia or in Dacia's Pitesti plant, Romania, where they are collected in the central warehouse near the factory before being trucked to Russia. Vehicle production in the Avtoframos factory is divided into three main workshops: the body shop, where the car's body components are welded, the paint shop and final assembly. 2006 Since December 26, 2006, Renault's share in the capital of Avtoframos amounts to 94.1 per cent. The City of Moscow, which remains our partner, holds 5.9 per cent. Avtoframos production Manufacturing facilities made up of a body assembly plant Products: Logan Number of assembly lines: 1 Factory certification: ISO 9001:2000 Surface area: 31ha Number of shifts: 3 Production statistics (in number of cars) 54892649iu0.jpg 79124651dy1.jpg 14211060xu9.jpg sursa: renault.com

In order to reinforce its presence in the Russian market, Renault is to invest USD150 million to increase the production capacity of its Avtoframos factory in Moscow

• Luc Alexandre Ménard, Renault's Senior Vice-President, Public Affairs and Euromed* Regional Leader, and Youri Loujkov, the Mayor of Moscow, represented by his First Deputy Vladimir Resin, today signed a heads of agreement of intention to increase the production capacity of the Avtoframos factory, Moscow, from 80,000 to 160,000 vehicles per annum.
• According to the terms of the agreement, Renault will invest USD150 million, while the City of Moscow will provide land and buildings with a planned mid-2009 production start-up date.
• In addition to Logan Sedan, new Logan Programme models will be produced at the Avtoframos factory.

In light of Logan's success in Russia and given the strong potential of this market, Renault has decided to increase the production capacity of its Avtoframos factory to 160,000 vehicles per annum from mid-2009, and also to extend production to include new models of the Logan Programme. This decision marks a new phase in Renault's development in Russia following the creation of a manufacturing and sales subsidiary in 1998, the launch of Logan production in April 2005 and the model's sale from July 2005.
Since July 2005, more than 56,000 Logans have been sold in Russia. Designed to meet to the needs of customers looking for a spacious, strong, reliable and inexpensive car, it has appealed particularly to Russian customers who are keenly aware of criteria such as quality, price and running costs. Today's announcement that production capacity will be doubled, which itself follows the decision to step up from 60,000 to 80,000 vehicles per annum from mid-2007, will enable Renault to meet to the demand of a market that has recorded two-figure annual growth rates for the past five years.
* Bulgaria, Moldavia, Romania, Armenia, Belarus, Georgia, Kazakhstan, Russia, Ukraine, Turkey, Cyprus, Turkey, Algeria, Morocco, Tunisia.
Inaugurated in April 2005, the Avtoframos plant will be extended to take in the neighbouring land of the former OAO Moskvitch factory. Within the framework of the cooperation between Renault and the City of Moscow, it is planned that the City of Moscow will contribute the land and buildings and that Renault will invest USD150 million in the renovation of the site and the establishment of new facilities. This investment comes on top of the USD250 million initially committed to the construction of the Avtoframos factory.
Parallel discussions are also continuing with a view to a future cooperation with Avtovaz.

Renault, the leading European carmaker in Russia
With a 7.7 per cent share of total foreign brand sales, Renault is currently the sixth best-selling foreign carmaker. It is also the leading European carmaker in Russia. In 2006, Renault sold 72,484 cars in Russia, an increase of 148 per cent over 2005. Logan, the sales of which amounted to 49,323 cars in 2006, accounts for 68 per cent of the Renault Group's sales and has emerged as the second best-selling foreign model in Russia. With a score of 17 and 7.8 per cent respectively, Mégane and Clio Symbol are the other cornerstones of the brand's success. Renault has developed a distribution network that today includes 71 dealerships and a total of 91 points of sale in 55 cities. This network covers practically all Russian cities with a population of more than 300,000. Inaugurated in 1999, the staff training centre for technical coordinators – the people behind the after-sales service's quality – has to date trained more than 2,000 staff, while a central spares warehouse enables dealers to take delivery of parts within 48 hours of
their order. Last but not least, Renault Assistance, which provides a technical assistance service to motorists, has been operating in Russia since 2001 to ensure that Russian customers can count on the best after-sales service quality possible.

RENAULT IN RUSSIA

1916 Establishment of Russky Renault, a joint stock company based in Saint Petersburg which was nationalized after the revolution.
1966 A series of agreements signed covering the engineering, supply and production of equipment. The principal agreements signed between 1966 and 1983 included those with Moskvitch (cars), Kamaz (trucks), Kharkov (tractors) and Pskov (sewing machines).
1968 Establishment of a representational office in Moscow.
1998 Establishment of Avtoframos, a Russian-registered company with an initial capital of 124 million roubles (€4.6 million). Renault and the City of Moscow had equal shares in the company, the mission of which was the production and sale of vehicles in Russia.
2000 The capital of Avtoframos increased to €90 million. The City of Moscow's contribution takes the form of land and buildings. Renault's takes the form of cash.
2003 February: Renault announces its decision to invest €230 million in the construction of the Moscow factory (renovation of buildings and installation of production equipment) with a view to producing Logan.
November: Renault and the City of Moscow increase capital by €30.5 million to finance the project.
2004 The Avtoframos factory built.
October: in an auction, Renault acquires the 26 per cent stake in Avtoframos relinquished by the City of Moscow. The transaction takes Renault's share in the capital of Avtoframos to 76 per cent. The City of Moscow holds 24 per cent.
2005 Logan launched. Production at Avtoframos is based on Completely Knocked Down kits (CKDs) using parts produced either by local suppliers in Russia or in Dacia's Pitesti plant, Romania, where they are collected in the central warehouse near the factory before being trucked to Russia. Vehicle production in the Avtoframos factory is divided into three main workshops: the body shop, where the car's body components are welded, the paint shop and final assembly.
2006 Since December 26, 2006, Renault's share in the capital of Avtoframos amounts to 94.1 per cent. The City of Moscow, which remains our partner, holds 5.9 per cent.

Avtoframos production

Manufacturing facilities made up of a body assembly plant
Products: Logan
Number of assembly lines: 1
Factory certification: ISO 9001:2000
Surface area: 31ha
Number of shifts: 3
Production statistics (in number of cars)

54892649iu0.jpg
79124651dy1.jpg
14211060xu9.jpg

sursa: renault.com

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