Kirov Plant EURO GROUP AND CREATE A JOINT VENTURE
Kirov Plant (St. Petersburg) and the Euro Group (Italy) signed a memorandum of intent to establish a joint venture for the production of components for electric vehicles. Investment in the project will amount to no less than 7.5 million euros. Start of production is planned for July 2013
The joint venture created with the purpose of manufacturing products from electrical steel cores rotors for electric motors and generators. The new production will be located in St. Petersburg on the territory of the Kirov factory.
Financial investment in the project will amount to at least EUR 7.5 million over the next 5 years.
The contribution of Euro Group in the newly created company will be equipment, investment, experience, know-how, technology and market knowledge. One of the key consumers of the products of the new company can be a subsidiary of concern Siemens, one of the main activities of which includes the release of electrical and power equipment. For its part, the Kirov plant will provide a platform to accommodate the new production, proprietary technology and the development of necessary investments, provide organizational, legal and practical support to the launching of the project at the local level, and will undertake ongoing operational issues associated with the supply, logistics etc.
According to the memorandum, 51% of the shares of the new company will be owned by Euro Group, 49% of the shares will be owned by the Kirov factory.
The conclusion of the memorandum was the result of intensive negotiations conducted by representatives of companies for 2012 Document captures the parties#39; intention to create a joint enterprise, and identifies the key steps on the road to start production. According to the memorandum, the memorandum must be signed by the end of 2012 to begin production of the new company is scheduled for July 2013
