Russian truck-maker, German supplier launch joint venture

KAZAN, November 23 (RIA Novosti, Irina Durnitsina) - Russian truck manufacturer KAMAZ and Germany's ZF Friedrichshafen AG marked the opening of their joint venture to produce automobile components in the Volga Republic of Tatarstan Wednesday, the KAMAZ press service said.

"The joint venture can take advantage of the government resolution on industrial foreign car assembly in Russia [reducing import duties on car components], which outlines strategic guidelines for the automotive industry, including the participation of Russian car-makers in global integration processes," Deputy Minister of Industry and Energy Andrei Reus said at the opening ceremony.

ZF Friedrichshafen and KAMAZ own 51% and 49% respectively in the joint venture named ZF-Kama. The enterprise is expected to produce up to 10,000 gearboxes a year, and to manufacture axles and transfer boxes in the future. The companies also plan to begin joint production of clutch mechanisms and reduction units for ZF 4x4 vehicles.

The venture is based in Naberezhnye Chelny, which is about 450 miles east of Moscow. Tatarstan's second largest city, it is home to the KAMAZ works, one of the world's largest heavy-duty truck plants.

ZF Friedrichshafen AG is one of the world's leading suppliers in the automotive industry. With turnover of 8.9 billion euros in 2003, the company was rated the third largest German supplier. In 2004, its turnover reached 9.9 billion euros.