RUSSIA REPORT
The Fund of Industrial Development has approved a loan of US$ 27 million (2 Bln rubles) under the “Priority Projects” program, which will allow Ural to build axles at a new production facility. The new site will allow OEM to double production of heavy load trucks and to create about 4,000 jobs.
Currently, these axles are being purchased in China. Ural is going to make this product for its own use, and for sale to other truck makers. Production under the program is expected to begin in 2023.
The money will be spent to purchase automatic lines with CNC control to work on drums, hubs, and brake disks, and also for renovation of forge production. In 2025, the OEM plans to make at least 18,800 drive axles for its own needs, and about 5,000 components for special machines. Under the project, Ural will produce 13 models of on-road axles, and 20 axle models for road construction machines.
PSR Analysis: This is another example of State support for the Russian automotive industry. PSR
Maxim Sakov is Market Consultant – Russia Operations, for Power Systems Research
