GKN Driveline is to open a 5,000 square metre plant in Togliatti in the Volga region of Russia, where a number of large car manufacturers are already based.
GKN production of constant velocity jointed side-shafts for a number of automotive customers is expected to commence in early next year.
Andrew Reynolds Smith, chief executive officer of GKN Automotive, said: “Russia is a key growth market for car manufacturers and this is an important step for GKN. A key part of our strategy is to continue the development of our global footprint, building the capability to add more value for our customers across a range of Driveline products.”
GKN already supplies Driveline products to many of the large car manufacturers in Russia, but the new plant, which is the first of its kind in the country, will offer locally-produced products together with the excellent service our customers already expect from GKN.
The Russian automotive industry produces over two million cars each year. Production is forecast to grow driven by increasing demand and government policies that are aimed at creating new production facilities and additional investment in the automotive market.
The new facility will be a green-field site with state-of-the-art equipment. In the meantime, GKN will modify an existing workshop in a bid to gather local momentum.
Among the customers GKN will be supplying are: Autovaz, Renault-Nissan, FordSollers, General Motors and GAZ.
It is understood these customers will account for some 1.2 million vehicle systems. GKN already supplies these customers but from facilities outside Russia.
The precise size of the facility is as yet unknown as GKN is unaware at this moment of the actual volumes that will be required.GKN Driveline is the world’s leading supplier of automotive driveline components and systems. As a global company serving the world’s leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline components – for use in the smallest ultra low-cost car to the most sophisticated premium vehicle demanding the most complex driving dynamics.
GKN Driveline is a leading global producer of CVJ Systems, AWD Systems, Trans Axle Solutions and eDrive Systems and operates in 23 countries at 57 locations employing approximately 22,000 people. ∎
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