Thursday, June 21, 2018

Automotive cluster facilities become key to Russian job creation

The Kaluga region announced that it has created 12,000 new jobs in its automotive cluster facilities, which have become integral in creating jobs in Russia.

Rusian Zalivatskiy, the deputy governor of Kaluga, said last week at the Russian Automotive Forum in Moscow that the region had attracted overseas manufacturers to the area, around 100 miles southwest of the country's capital city, Just-Auto reports.

"Everyone is interested in Kaluga," Zalivatskiy said, according to Just-Auto. "Nobody believes you when you say the recipe is quite simple - you just need to hire honest people and deliver results. [We have] 12,000 new jobs created at automotive cluster facilities and 22 facilities manufacture automotive components. The potential for the Russian car market is huge. Kaluga said we were forming an automotive cluster and today, we are in the top three cities in Russia.

"The main task of each region is to create localization - we have Volkswagen, PCMA [PSA and Mitsubishi JV] and Volvo Trucks, which are three key people. We are near Moscow and offer developed infrastructure - this is a well-developed logistical network."

Deputy Chairman of the Government Alexander Petrov also spoke for the Sverdlovsk region at the event about the importance of creating automotive components in his administrative area, which is 880 miles east of Moscow.

"One of the problems of the Russian machine-building industry is under-developed promotion of automotive component production," Petrov said, according to Just-Auto. "In 2008, there was a slump and the government has taken all reasonable efforts to revitalize production.

"Today we have a goal to develop automotive components - 'Titanium Valley' produces automotive components [as well as] for a whole range of aircraft such as Airbus and Boeing. We are open for co-operation and are inviting all interested investment - our potential is quite immense."

Russia sold three million vehicles last year and is expected to sell 2.95 million this year. The market sold approximately 1.2 million vehicles at the end of the Soviet Union in 1991.