Power Systems Research Activities in Russia Paused
March 2022- Power Systems Research has currently paused all research and business development activities in Russia. We have maintained a presence in Russia since 2013 to bring important updates to our clients about the powered equipment markets within Russia. We are monitoring the current situation on a daily basis and hope to again establish this presence at some point in the future when the conflict with Ukraine resolves. Please contact us at info@powersys.com if you have questions regarding business conditions in Russia. Thank you.
KAMAZ has reported a net profit of (more than US$ 20 million (1545 million Rubles) for 2020. KAMAZ reported revenue for 2020 of US$ 2.47 billion (185.8 billion Rubles), an increase of more than 16% over 2019. This growth is based on domestic truck sales, the introduction of the K5 range, and an increase in bus and electric bus sales.
Despite the COVID pandemic, in 2020 KAMAZ secured positions in the market and has claimed the status of leading Russian heavy vehicles supplier. The company claims a leader position in the 14+ ton truck market in Russia with a share of 47.5%, up 3.3% over 2019.
PSR Analysis: Of course, State support measures are a big part of this success. Still, domestic truck and bus production has demonstrated good survival potential even in a major pandemic. PSR
Maxim Sakov is Market Consultant – Russia Operations, for Power Systems Research
MOSCOW (April 21, 2021)–After only a seven-month break, the Mining World Russia trade show has started again, without many major exhibitors. The last Mining World event was conducted in October 2020.
Maxim Sakov
This year’s fair started April 20 in the same place – the Crocus Expo Center Moscow. There were no significant changes since the last event. The amount of occupied space was similar, and the number of participants was about the same (167 companies versus 176 last time).
However, the number of countries has increased significantly – to 20. There were exhibitors from Australia, USA, Canada, U.K., India, China and so on. Large machine samples, including crawler drills, have been brought by Turkish companies. Germany is presenting a national exposition at the fair (in spite of pessimistic announcements made by German top officials regarding coal mining recently). Belorussian Belaz also presented at the show.
PSMA Rus plant, located in Kaluga, Russia, has made first testing sample of ned DV6 motor.
First engine was produced in February. Engine production in the plant was set according to obligations for product localization, written in the contract with Russian government.
Turbocharged DV6-EL engines have 1,6-liter volume. They will be set to LCV models, produced on Kaluga’s plant.
PSMA plant in Kaluga makes Peugeot, Citroen, Mitsubishi cars for Russian market. The production started in 2010.
PSR Analysis. If the project succeeds, it will be smallest mass produced diesel engine in Russia. Whereas EU countries are trying to cut off diesel powertrain production, Russia invites it into the country. PSR
The Department of National Security of Norway may block the purchase of engine OEM Bergen Engines belonging to Rolls-Royce by Russian Transmash-Holding. According to Justice Minister of Norway Monica Melan, the acquisition may be a threat to national security. The deal is estimated at €150 million. According to the minister, it’s necessary to suspend a deal to collect information for making a final decision.
Bergen Engines was founded in 1946. Since then, the company delivered more than 7,000 engines, 5,000 of them still operating. Current personnel number is 900 people.
The joint venture of KAMAZ and ZF Friedrichshafen AG is going to establish mass production of 12-speed automated gearboxes Traxon for trucks, buses and special machines with 44-80 ton capacity. At the moment, the JV is offering mechanical transmissions only. According to the plan, the production of gearboxes will be localized on 24%, power steering, by 10%, suspensions, by 40%. New products will be supplied to KAMAZ trucks, as well as to other OEMs – MAZ-MAN, Ural, Isuzu, etc.
The total budget of the new project will be US$ 15 million (1.1 billion Rubles). About half of it will be provided by the Industry Development fund as a privileged loan.
The privileged loan will be provided by the fund on 1-3% interest rates for up to seven years.
PSR Analysis: There is a long history of co-operation between KAMAZ and German ZF. Now, with the State support, they are going to offer to the market brand new equipment, which was not available on domestic trucks before. PSR
Maxim Sakov is a Market Consultant – Russia Operations with Power Systems Research
In 2020, NEFAZ, a subsidiary of KAMAZ, made 202 electric buses. In 2021, it plans to double the production of this innovative transport.
Today, in Moscow has 400 working KAMAZ electric buses, half of which were supplied during 2020. “We can make machine, which became tech leader on domestic market. We could enter Moscow passenger transport market. It changes the scale of the business and our respect to own product,” says KAMAZ general director Sergey Kogogin.
TMH-international, the international division of TMX, has agreed to purchase the British Rolls-Royce Group engine plant in Bergen, Norway. The plant makes Bergen diesel and natural gas engines.
Bergen includes metal processing, assembling, precise casting, repair workshops, design bureau and service network in seven countries.
UAZ plans to sell is Patriot SUV under the Bremach Taos brand in the US. It will be sold by a branch of Italian Company Bremach, which specializes in AWD special cars. Patriot is being upgraded to meet the standards required on US public roads.
Assembly is planned to be performed in California. The base cost of the SUV is expected to be about US$ 26,000. US modifications of the car will include an automatic transmission and 4-cylinder of 2.7 liter and 150hp. It will have 5-year general warranty and 10-year warranty on engine.
Hyundai has closed its purchase of the GM plant in St Petersburg, but the production start date has not been determined. The announcement was made during a company press-conference.
Financial details and company plans related to the production site were not disclosed.
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