President of AVTOVAZ Nicolas Maure visited the site under construction of automotive plant in Eastern Kazakhstan

    The working visit of the President of JSC ''AVTOVAZ'' Nicolas Maure in Kazakhstan, who visited the site of auto industry cluster of full cycle, which is in the process of construction in Ust-Kamenogorsk, Kazakhstan.

    The participants of this project which is strategically important for LADA export opportunity, are the group of companies ''BIPEK AUTO - ASIA AUTO'' and JSC ''AVTOVAZ'', which is the part of the Renault-Nissan Alliance. The main sales markets of the future industrial complex will be Kazakhstan, Eurasian Union countries, as well as the republics of Central Asia - Turkmenistan, Kyrgyzstan, Tajikistan and Mongolia.

    During the visit Mr. Maure discussed with Kazakhstan partners a progress of the project. As of 1st of October, 2016 the investments of ''BIPEK AUTO - ASIA AUTO'' holding to the project exceeded the $ 58.1 million. The total volume of investment in the basic capacity of the first stage will be $ 380 million.

    Installation of utilities works (communication roads, electricity, water and heating supply) has been completed on 79%. In 2017 the start of works for construction of railways is scheduled.

    Building of infrastructure of the future production is supported by the Government of Kazakhstan in the framework of ''Business Road Map 2020'' state program.

    Working visit of Mr. Maure became his second visit to Ust-Kamenogorsk since inauguration in April 2016.

    President of JSC ''AVTOVAZ'' Nicolas Maure: ''Kazakhstan is No. 1 market in the export portfolio of AVTOVAZ. We have been cooperating with BIPEK more than 20 years. We are the minority shareholders of the joint venture. 12 years ago, we signed an agreement for supply of assembly kits. And now we will jointly expand a model line-up of LADA cars, assembled in Kazakhstan at the plant of full cycle. Granta and Kalina have been appeared, and in November LADA Largus will appear and then Vesta”.Let us recall, 4th of October, President of JSC ''AVTOVAZ'' Nicolas Maure and the head of ''BIPEK AUTO - ASIA AUTO'' holding Anatoliy Balushkin participated in e XIII Forum of Interregional Cooperation of Russia and Kazakhstan held in Astana under the presidency of the Heads of States of Russia - Vladimir Putin and Kazakhstan – N. A. Nazarbayev.

    In his speech in Astana forum President of Kazakhstan Nursultan Nazarbayev called it the first among all the large-scale joint Russian-Kazakh projects and estimated its total capacity: ''Many Russian businessmen are already doing business in Kazakhstan, understand its capabilities and long-term prospects. Now more than 6000 joint ventures with Russian businessmen are operating. I could give significant examples: such project as ''AvtoVAZ'', ''ASIA AUTO'' to the value of more than half a billion dollars. It provides the launch of automotive plant of full cycle in Ust-Kamenogorsk with capacity of 120 thousand cars. This is the first time in our country. ''

    Construction of industrial complex which is the largest in the history of the Kazakh car manufacturing was located on the area of 523 hectares. As part of the construction of the facilities of the first stage investors shall put into operation production and warehouse premises with total area of 172 thousand square meters.

    The engineering concept of the future industrial complex was developed by an international company Tebodin, one of the European leaders in the field of industrial designing. The project partner in terms of marketing expertise is PriceWaterhouseCoopers Company (PWC).

    Start of first stage of the plant with capacity of 60 thous. units is planned for 2018.

    The main sales markets of the future industrial complex will be Kazakhstan, Eurasian Union countries, as well as the republics of Central Asia - Turkmenistan, Kyrgyzstan, Tajikistan and Mongolia.

    Following the results of 2015 AVTOVAZ confirmed its status of the most successful player in Kazakhstan`s automotive market. The share of its output is accounted for 28% of all passenger cars sold in the country. LADA keeps position No. 1 in terms of volume of sales in the market of Kazakhstan. During 2015 the residents of the republic bought 24 500 cars of the Russian brand. Total sales of AVTOVAZ in the Russian and export markets at the end of last year amounted to 298 thousand units.