Daimler Signs Russian Truck Joint Venture with Kamaz

Ft Lauderdale, Florida 11/24/2009 10:20 PM GMT (TransWorldNews)

German car and truck maker Daimler AG said Tuesday it has signed two joint-venture agreements with Kamaz Inc. that will expand its presence in the Russian truck market for an investment of about euro10 million ($15 million).

Daimler, based in Stuttgart and the world's biggest truck maker, said the projects stem from a previous deal in which Daimler acquired a 10 percent stake in Kamaz, Russia's biggest truck maker.

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One of the new deals will set up Fuso Kamaz Trucks Russia, which initially will import Fuso Canter truck kits from Japan for assembly at Kamaz' Naberezhnye Chelny plant. Assembly is slated to start in the first quarter of 2010, assuming regulatory approval is received.

Daimler and Kamaz each will hold 50 percent of Fuso Kamaz Trucks Russia, with each contributing euro4.1 million in initial equity. The company will have its sales headquarters in Kazan.

Daimler said that, in future, parts and components will increasingly be produced in Russia.

Fuso, a fully-owned subsidiary of Daimler, is based in Kawasaki, Japan. Daimler's other truck brands include Mercedes and Freightliner.

Daimler and Kamaz will each contribute euro5.9 million to the second new 50-50 joint venture, Mercedes-Benz Trucks Vostok, with its sales headquarters in Moscow.

Mercedes-Benz Trucks Vostok will build Mercedes Actros and Axor heavy trucks from kits, also at Naberezhnye Chelny. Truck production is set to start in the second quarter of 2010.

Andreas Renschler, a Daimler board member responsible for trucks and buses, said the projects marked "a giant step toward to the expansion of our presence in the Russian market."

"That means, as soon as the Russian truck market will recover, we at Daimler Trucks are able to react on any additional truck demand immediately," Renschler added.

Shares of Daimler were down a quarter of a percent at euro35.53 in Frankfurt afternoon trading.

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