Automotive Lighting of Germany plans to build its second plant in Russia by July-September 2008, Russian business daily Vedomosti reported on Wednesday.
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Automotive Lighting has a plant under the same name in the Ryazan Region and plans to build a second plant there, the daily said, according to the Prime-Tass news agency.
Vedomosti cited an unspecified source at Automotive Lighting’s Russian plant, and Tatyana Savina, deputy director of the industrial policy and science department of the Ryazan Region’s government.
The plant is expected to produce auto lights worth 3bn rubles annually, Savina said. Currently Automotive Lighting is looking for land on which to build the plant, he added.
Construction of the plant is expected to cost between EUR30-40m, according to the estimate of an unspecified top manager at one of the company’s competitors, the daily reported.
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By GlobalDataCurrently Automotive Lighting accounts for about 15-20% of Russia’s auto light sales, according to the estimate of an industry source, the daily said.
With the launch of the second plant, Automotive Lighting is expected to increase its share to 50%, if its main competitor Russia’s SOK Group does not expand, the same source said. SOK Group supplies auto lights to AvtoVAZ, GAZ, IzhAvto, UAZ and Kamaz, the daily said.
Automotive Lighting has started talks on supplying car lights to Avtoframos, a joint venture between the Moscow city government and French auto manufacturer Renault, the source at Automotive Lighting’s Russian plant said.
Olga Sergeyeva, spokeswoman for Renault Russia, said that Automotive Lighting would start supplying rear and fog lights to Avtoframos in 2007, the daily reported.
Avtoframos currently buys its lights in Europe, Sergeyeva said.
Yekaterina Kulinenko, spokeswoman for the Russian division of Ford, said that the automaker is not holding talks on car light supplies with Automotive Lighting, the daily said.
Automotive Lighting also wants to supply lights to the assembly plants to be built by Toyota and Volkswagen in Russia, the source at Automotive Lighting’s Russian plant said. Representatives of Toyota and Volkswagen refused to comment, the daily said.
Automotive Lighting has about 20 plants worldwide. Its Russian plant supplies AvtoVAZ, GM-AvtoVAZ, GAZ and UAZ, the daily said. Revenue was 670m rubles in 2005 and net profit 64m rubles, the daily said.
