At KAMAZ there was hold a conference of participants of “Master” Kama Industrial Park (KIP) and presentation of its conception at production premises of “RemDiesel” CJSC (which is a subsidiary of KAMAZ Inc.).

Potential participants of the future Industrial Park were representing reliably functioning small and middle size companies that are closely cooperating with KAMAZ Inc.

The idea of establishing of such an Industrial Park on “RemDiesel” production premises belongs to the top management of KAMAZ Inc., and its materialization has been started since last autumn.

Unlike classical version of a technical park, activities of “Master” KIP participants will be based on a concrete business plan. It is a not a venture business, which is assuming possible certain risk but fixed interaction of small, middle and big companies profitable for each of them. Public mission of this KIP is to create new work places and introduce approved technical and technological solutions. Its strategic aim is to launch advanced and efficient production of vehicle components that otherwise are not profitable when manufactured by a large entity.

The project is going to be quite profitable for KAMAZ Inc. as there appears a possibility to support flexible production, concentrate investments on key products, test new design decisions while launching new products, reduce manufacturing cost of vehicle components, and monitor quality of components. Other participants of this project will benefit from it too as they will obtain big long-term orders and will be provided with flexible leasing and credit terms, they will be able to acquire equipment at reduced prices, and decrease production and distribution expenses. Shareholders of KAMAZ Inc. will also gain due to improved production efficiency and capitalization, and investment attractiveness of the company.

Establishment of the industrial park will positively impact Republic of Tatarstan and the city of Naberezhnye Chelny due to following increase of the tax base and population employment.

Tatarstan has assigned 150 million Rubles to support organization of KIP. It is very important that appearance of small business on the market of components supplying KAMAZ will result in increased competitiveness of a KAMAZ truck itself.

Kama Industrial Park is scheduled till 2008 and consists of several stages. Upon approval of the concept there will start registration of future participants of “Master” KIP in June. Organizational period will last till the end of 2004. Then, next year, production cooperation process will start. Fundamental improvement of production process and transport logistics will take place within 2006-2007. It is quite possible, however, that along with “Master” KIP project there can appear JVs of KAMAZ Inc. with Russian or foreign partners.

© www.kamaz.net, 2004