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UK-Based Auto Supplier Stadco to Expand Into Russia

MOSCOW, Russia (January 17, 2007) — The objective of this arrangement is to offer modern, high quality stamping and assembly facilities to the growing number of international automotive manufacturers that are moving into Russia.

  [ 1/17/2007 ]  By: NEWS BRIEFS   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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UK-based Stadco, a tier-one supplier of body-in-white (BIW) services to vehicle makers, is working with a Russian partner to build body stamping and assembly facilities in Russia.

The firm also says it expects to develop and establish its own new BIW facilities within two years in the St Petersburg and Moscow regions close to the assembly plants of international vehicle makers who are busy expanding production in Russia.

Stadco is currently working with Russian contract vehicle assembler Severstal-Auto on the establishment of body stamping and assembly facilities in Russia.

Stadco says that the initiative utilizes Stadco’s expertise in BIW, allied with Severstal-Auto’s vehicle manufacturing experience, existing facilities and local market knowledge.

The objective of this arrangement is to offer modern, high quality stamping and assembly facilities to the growing number of international automotive manufacturers that are moving into Russia.

The Stadco collaboration with Severstal-Auto initially involves Stadco leading the refurbishment and upgrading to international standards of Severstal-Auto’s Ulyanovsk press shop. Work is underway, and it is envisioned that the plant will be able to supply medium and small BIW components to international vehicle manufacturers that are starting up in Russia, as well as meeting Severstal-Auto’s internal needs and exporting components to Europe.

The second major project involves the creation of new stamping and assembly facilities in the Tatarstan region.

Stadco anticipates that vehicle production in Russia by incoming international manufacturers will amount to more than 200,000 units per year in 2007, representing more than 10 million potential outsourced stampings, with strong further growth likely.

In addition to the collaboration with Severstal-Auto, Stadco expects to develop and establish new BIW facilities in the St Petersburg and Moscow regions close to the assembly plants of international vehicle manufacturers. These new facilities, which are being designed for modular expansion, in order to accommodate the expected continued growth of the Russian market, will feature fully automated press machinery and robotic assembly systems.

They will focus on larger stampings and assemblies, including class-A skin panels. Operations are expected to begin in two years.

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