GAZ Group and Bosal Create Emission Control Systems Joint Venture

NIZHNY NOVGOROD, Russia - Russian car maker GAZ Group and Bosal, one of the leading international manufacturers of emission control systems, have signed an agreement to establish a joint venture at Gorky Automobile Plant in Nizhny Novgorod.

New production of emission control systems (exhaust pipe, muffler, catalytic converter) will start in the fourth quarter of 2011. At the first stage the joint venture will produce components according to Euro-3 standard, and starting from 2012 components will be Euro-4 compliant.

At the initial stage annual manufacturing capacity of emission control systems facility will be 350 thousand kits. Customers will include GAZ, as well as outside companies. It is planned to use the products of the joint venture in production of upgraded GAZelle-BUSINESS vehicles and in contract manufacture of foreign branded vehicles at GAZ. The parties are planning that components produced by the joint venture will be also used in foreign vehicles localization in Russia.

Aad Goudriaan, President & CEO of BOSAL: “I am glad to say that GAZ with extensive manufacturing capabilities and competences has become our partner in Russia. Our company has been actively developing in the Russian market for over 10 years. Already we have established two production facilities and а distribution network in Russia. Cooperation with GAZ will allow us to expand our manufacturing capabilities further and to provide hi-tech products for Russian and foreign vehicles. The existing capabilities of GAZ will allow us to establish a modern production facility within a short period of time and to offer to our customers competitive quality products”.

Bo Andersson, President of GAZ Group: “Cooperation with BOSAL will make it possible to upgrade manufacturing capacity of GAZ automotive component production facility and to equip our products with modern emission control systems. Implementation of the project will become a successful step in attracting leading international manufacturers to localize hi-tech autocomponents in Nizhny Novgorod region and to develop the automotive cluster in the region further”.