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Siemens VDO Automotive acquires majority in Russian supplier AVTEL

Munich/Regensburg, Siemens VDO Automotive signed a contract to acquire 51 percent of the shares of the automotive supplier AVTEL, a joint venture of the Russian companies Avtoelectronica and NPP ELCAR. Siemens VDO Automotive will become the leading partner in the joint venture. The company will operate as AVTEL – a joint venture between Siemens VDO, Elcar and Avtoelectronica. The closing for the deal is expected by beginning of November. The companies agreed secrecy over the purchasing price.

AVTEL was founded in 1999 in Kaluga. It develops and produces automotive components, such as engine controls, sensors, and injectors. In 2005, the company had a sales volume of 35 millions EUR (1,2 billion Rubles) and about 300 employees. “With our engagement in this joint venture, we will continue our strategy to increase our business in the Russian market. Due to the high growth rates of the Russian automotive market, we see good prospects for suppliers”, Reinhard Pinzer, Group Vice President of Siemens VDO Automotive, said at the signing ceremony in Moscow. Siemens VDO already has a solid basis for R+D and production in Russia with its facilities for the manufacturing of instruments and tachographs in Chistopol, and the engineering joint venture with NPP ELCAR for the development of engine management systems in Moscow.

“AVTEL has an excellent position with Russian car manufacturers and will broaden our customer base by supplying other European, US- and Asian OEMs. The infrastructure in Kaluga enables us to extend the production facilities of AVTEL and to create new jobs in order to better serve our customers like Volkswagen AG, who is just building a new production plant nearby,” Dmitri Azarov, Head of OOO Siemens VDO Automotive, Russia, added.

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Siemens VDO Automotive is a leading international automotive electronics and mechatronic supplier. The group is part of Siemens AG and generated sales of EUR 9.6 billion in the 2005 business year (30.9.).

OAO "Avtoelectronica" is one of the leading automotive enterprises, developing and manufacturing products and systems with electronic components for buses, cars, tractors and other agricultural machines'. The company’s products are supplied to all leading Russian and CIS car and tractor plants. Since 1998, a quality management system certified by RW TUV on ISO 9001:2000 standards was implemented on Avtoelectronica. The enterprise was established in 1991, on the basis of KZAME.

OOO NPP ELCAR provides full development of electronic engine management systems for Russian cars. OOO NPP ELCAR developed and implemented control algorithm for VAZ, developed and put into mass production electronic control units "MIKAS 5.4" and "MIKAS 7.1" for GAZ and controllers "Yanvar' 5" for VAZ.

Reference Number: SV 200611.006 en

Miércoles, 01 Noviembre, 2006 - 10:25
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