KAMAZ Today
Basic Facts
KAMAZ Group is the largest automobile corporation of the Russian Federation. OJSC KAMAZ ranks 16th among the world's top heavy truck manufacturers.
In January 2008, KAMAZ produced the 1.9-millionth vehicle since the beginning of production. KAMAZ plans to produce the 2 millionth vehicle in February 2012. In the 4th quarter of 2011, the automobile plant of KAMAZ assembled more than 1 million 995 thousand ready-made vehicles.
In February 2008, the 2.5-millionth engine came off the mother assembly line of KAMAZ-Diesel Inc. In the 4th quarter of 2011, over 2 million 667 thousand engines and power units were produced.
The authorized capital of KAMAZ makes up RUB 35.36 billion. The largest shareholdings belong to the state and commercial banks.
The single production complex of KAMAZ Group embraces the whole technological cycle of truck production – from development, production, assembly of vehicles and auto components to marketing of finished products and service maintenance.
The group of the process chain includes 12 large automobile plants. The following enterprises are located in Naberezhnye Chelny: Metallurgical Complex (a foundry and a forge plant), Engine Plant, Press and Stamping Plant, Automobile Plant, Repair Instrument Plant, Industial Park Master, and Remdiesel. The largest associated companies outside Naberezhnye Chelny are JSC “Neftekamsk Automobile Plant” and OAO “Tuimazinskiy Zavod Avtobetonovozov” (the Republic of Bashkortostan), Trailer KAMAZ Inc. (Stavropol).
To date, KAMAZ Group includes over 150 organizations located in Russia, the CIS and the far abroad.
About 55 thousand people work in departments and associated companies of OJSC KAMAZ.
Proceeds from sales of marketable products and non-industrial services of KAMAZ Group for 11 months of 2011 made RUB 91.2 billion.
In 2011, KAMAZ Group manufactured nearly 45,200 trucks, 39 thousand units of which were sold on the Russian market. Also, KAMAZ took 38% in the segment of trucks with GVW of over 16 t and 15% in the segment of 8-16 t GVW vehicles of the Russian truck market. KAMAZ became the absolute leader in the class of heavy trucks in Ukraine, Kazakhstan, Azerbaijan, Turkmenistan, and a number of other countries. During 2011 the company produced spare parts to the tune of over 6 billion roubles and other products for the sum of more than 9 billion roubles.
Production
OJSC KAMAZ produces a wide range of vehicles: trucks (over 40 models, more than 1,500 kits, right-hand vehicles), trailers, buses, tractors, engines, power units, and different tools. KAMAZ traditionally positions itself on the market of trucks of 14-40 t GVW. For the last years, the range of the company’s production has considerably increased. The manufacture of medium tonnage vehicles was mastered, the line-up of high payload vehicles was extended.
Previously, technical specifications of vehicles were improved and their customer appeal was enhanced – both due to the use of automobile components made by the leading producers, and the implementation of KAMAZ’s own original developments. All these measures enabled the company to create the so-called “model range 2010” on which the company’s production program will be based till 2014 when KAMAZ plans to create a brand new model range of its vehicles. In 2012, when Russia adopts technical regulations compliant with Euro-4 international standards, KAMAZ vehicles will have engines meeting this environmental standard.
In 2011, OJSC KAMAZ performed the main tasks to implement its product policy and enhance the consumer appeal of manufactured vehicles. The company
expanded the range of KAMAZ trucks equipped with restyled cabs and improved consumer properties;
started producing vehicles of the light-duty KAMAZ-5308 line-up;
produced pilot batches of Euro 4 KAMAZ vehicles;
implemented a project with Dürr (Germany) to improve protective and decorative properties of cabs – "VANEO Paint Line”;
ramped up production of KAMAZ trucks equipped with ZF gearboxes, including automatic ones, supplied by ZF KAMA Joint Venture;
started equipping KAMAZ-65115 vehicles with 300 hp Cummins IsBe engines;
started equipping vehicles with connecting rod and piston groups manufactured by Federal Mogul Naberezhnye Chelny JV;
launched the serial production of KAMAZ engines equipped with Common Rail systems made by Bosch;
ramped up production of 400 hp KAMAZ engines;
launched the serial production of oval-type tipping platforms;
equips all vehicles, except all-wheel drive ones, with tubeless tires and profiled wheels.
Bus chassis of a new generation with improved consumer properties, including 100% low-floor bus chassis, were tested, and construction documents were developed for them.
Quality
The quality management system of OJSC KAMAZ corresponds to the requirements of ISO 9001:2008, GOST R ISO 9001-2008 (ISO 9001:2008), and GOST RV 15. 002 – 2003. Certificates of conformity were issued by Certification Association "Russian Register".
OJSC KAMAZ is the only representative of machine building which in 2006 received the RF Government Award in the sphere of quality; and it is the laureate of the “Russian Trade Olympus” award in the nomination “Competitiveness and Quality”; in 2010, it was entered in the Register of Gold Certificates of Voluntary Certification System "Voennyi Registr" (Military Register).
Assembly Enterprises
OJSC KAMAZ has got assembly enterprises in Vietnam, Iran, Kazakhstan, Pakistan, India. Vehicles are fully assembled of components delivered from KAMAZ. The company implements programs to localize the production of details and units of vehicles assembly sets in the countries where assembly enterprises are located.
Clients
Our clients are enterprises of all industries where trucks are used, companies busy with cargo transportation, regional and urban fleets of Russia and other countries, natural monopolies, large corporate clients, public enterprises and offices, departments of governmental military and policing branches. The largest customers of OJSC KAMAZ in Russia are the Russian Ministry of Defense, GAZPROM, LUKOIL, SUEK, TNK, etc.
Outlets
OJSC KAMAZ has great achievements not only due to high quality and technical level of production, but also due to an effective strategy on the market. We contact with more than 600 enterprises of Russia, the CIS countries and the far abroad.
The sale geography of KAMAZ vehicles and spare parts is increasing thanks to mastering of new markets: Saudi Arabia, India, Chile, Nicaragua. OJSC KAMAZ became more active on the markets of Iran (except for military vehicles), Sudan, Afghanistan, Angola, resumed deliveries to Venezuela and Panama. In 2011, KAMAZ delivered vehicles and spare parts for them to 43 countries. The export share in the total sales volume of KAMAZ vehicles made 12.5%. The export volume formed 4,040 KAMAZ vehicles and vehicle sets. OJSC KAMAZ won in the competition “The Best Exporter of the Russian Federation” twelve times (in 1999-2010).
Dealer and Service Network
The marketing and service network of OJSC KAMAZ embraces all Russian regions and the CIS, and also traditional outlets. In 2011, KAMAZ continues actively developing its commodity distribution and service network in Russia and overseas. As of November 1, 2011, the dealer network numbers 139 members: 129 dealers, 1 agent, and 9 distributors of spare parts. As of November 1, 2011, the number of authorized service centers in Russia maintaining KAMAZ vehicles is 150 units.
The technical maintenance system is based on the principles of a united style and maximal approximation of services to customers. The service network is developing in two directions – building of new service centers and reconstruction of existing ones. When working with dealers, the company follows a special document "The guide for dealers of OJSC KAMAZ” which stipulates requirements for them. Certification of dealer and service centers in accordance with “The guide for dealers of OJSC KAMAZ” enables to ensure a single service format and authorized dealership recognition, formalize requirements for the organization of the dealers’ key business processes.
Leasing
Leasing Company KAMAZ Inc. is one of the largest Russian companies which offer a service of leasing of vehicles from a manufacturer. The development level of the company, its service and service packages were appreciated both by its colleagues and experts. According to the Russian Association of Leasing companies, Leasing Company KAMAZ takes 1st place in the market segment “Road-Building Equipment”, 3rd one – in the segment “Machine-Building Equipment”, 7th one – in the segment “Leasing of Motor Transport”, and 13th one – on the whole Russian leasing market by volumes of a new business. Besides, by version of Expert RA (Rating Agency), the company ranked third among top 20 leasing companies working with medium-sized enterprises. Also, Leasing Company KAMAZ was named a laureate of the National Award “Company of the Year” in 2010 and 2011 – in the category “For financial reliability and stability on the market of leasing services”. The company combines high profitability, steady positions on the market, rapid development, focusing on international standards of financial and information transparency.
Joint Ventures
On November 23, 2005, Zahnrad Fabrik (Germany) and OJSC KAMAZ opened a joint enterprise – ZF-KAMA OOO. This is the first production facility created by KAMAZ jointly with a foreign firm for manufacture of products under its trade mark. And it is the first example of world-class high-quality production organized in Russia. The JV annually produces 5,000 gearboxes. An agreement was signed to increase production volumes of the JV from 9 to 89 thousand gearboxes a year.
In January 2006, OJSC KAMAZ and Cummins Inc. (USA) signed documents to establish Cummins KAMA Joint Venture producing Series B engines for the Russian market. The authorized capital of the enterprise is $20 million in which the shares of the founders are divided equally. The enterprise will produce Euro-3 and Euro-4 motors with electrical control, compliant with ecological standards implemented in Russia.
In December 2007, OJSC KAMAZ signed an agreement with Knorr-Bremse Systeme für Nutzfahrzeuge GmbH to establish Knorr-Bremse KAMA Joint Venture producing brake assemblies in Naberezhnye Chelny with equal shares of the parties in the authorized capital.
On March 10, 2008, Federal Mogul Corporation (USA) and OJSC KAMAZ signed the incorporation documents of a joint enterprise producing cylinder-piston assemblies with equal shares of the parties in the authorized capital – Federal Mogul Naberezhnye Chelny.
In December 2008, Daimler AG (Germany) obtained 10% of the authorized capital of OJSC KAMAZ, which was the start of the two automobile producers’ new mutually advantageous partnership. As a result of this strategic partnership, in 2009 OJSC KAMAZ and Daimler AG signed contracts to establish two joint ventures – Fuso KAMAZ Trucks Rus to produce and sell Fuso Canter light-duty trucks in Russia and Mercedes-Benz Trucks Vostok to produce and sell Mercedes-Benz Actros and Axor heavy-duty trucks. In February 2010, Daimler AG increased its share in the share capital of OJSC KAMAZ to 11%. Besides, the European Bank for Reconstruction and Development also obtained 4% of the Russian company’s shares for the benefit of the German partner.
In March 2010, OJSC KAMAZ and CNH Global NV, a member of FIAT Group, signed an agreement to establish a joint venture to produce agricultural and construction equipment. For 3 quarters of 2011, CNH KAMAZ Industrial BV shipped its customers 185 combine harvesters and 184 tractors bearing the New Holland trademark.
In September 2011, OJSC KAMAZ and Marcopolo SA signed a joint venture agreement to produce and sell Marcopolo buses. The main purpose of the joint venture set up on a parity basis by OJSC KAMAZ and Marcopolo is to manufacture and sell Marcopolo buses based on KAMAZ chassis complying with Euro 4 and satisfying modern requirements for passenger transportation in the Russian Federation and CIS countries. Buses will be produced at the facilities of a subsidiary of OJSC KAMAZ - OAO NEFAZ - in Neftekamsk, the Republic of Bashkortostan. The joint venture plans to produce 3,000 buses per year and attain its full capacity in 2016.
Military Equipment
Delivery of our production to the RF Ministry of Defense is another promising area of the company’s activity. In February 2006, OJSC KAMAZ received licenses from the Federal Agency of Industry of the RF Ministry of Industry and Energy providing the rights for development, production, repair and utilization of defense equipment.
About 50 thousand vehicles on KAMAZ chassis with excellent specifications form the most numerous group in the vehicle fleet of the Armed Forces of the Russian Federation. KAMAZ vehicles excel the Russian and foreign analogues in their tactical and technical characteristics. Over 350 models of armament and military equipment are mounted on KAMAZ chassis. KAMAZ vehicles are transport facilities of subdivisions and logistic units.
OJSC KAMAZ developed the unified line of army vehicles of the Mustang family with special running abilities and mounting means against the order of the Ministry of Defence. Constituent part unification of vehicles of the family (to 85%) and vehicles operated for commercial purposes (to 97%) forms the basis for the country’s mobilization base.
OJSC KAMAZ is currently developing army vehicles of the new generation. By the Decision of the RF Government, OJSC KAMAZ is one of strategically important enterprises serving for the country’s national security.
KAMAZ-master
The racers of the KAMAZ-master team demonstrate a shining example of technical skills and sportsmanship. The crews of the racing drivers from Naberezhnye Chelny repeatedly won international rallies and super marathons. The KAMAZ-master team 10 times won the informal world championship among truck producers. KAMAZ confidently converts its sports victories at the legendary rallies Paris-Dakar, Lisbon-Dakar in its business-success.
Advantages of KAMAZ Production
Easy-to-maintain and reliable trucks of high quality with low operation costs and at most competitive prices;
Customers’ all needs are satisfied;
Wide marketing geography – KAMAZ vehicles operate under any road and climatic conditions: in the Northern Pole and in tropics, in deserts and high mountains;
Developed service network in Russia and the CIS, warranty kilometrage of vehicles is up to 75 km.
All these advantages facilitate KAMAZ to improve its production along with the leaders of the world machine building. OJSC KAMAZ pursues an active, balanced and independent price policy on the domestic market first of all focusing on market requirements and optimum price-quality relationship.
Prospects of OJSC KAMAZ
Realities of the post-crisis economic space and strengthening of cooperation with KAMAZ's strategic partner, Daimler, made it necessary to approve "The Strategic Development Program of KAMAZ OJSC for the Period Until the Year 2020” in December 2010.
A strategic vision of the company’s development: KAMAZ is the national industry leader and a major international player. "KAMAZ is an adaptive, effective, global company".
- Adaptability is an ability of the company to change business parameters depending on market conditions, quickly and flexibly managing the volumes of production, production facilities, the number of employees.
- Efficiency is ensuring of balanced economic and financial indicators of profitability, investment activity and an internal rate of return no less than industry average indicators;
- Globality is strategic partnerships with the world’s leaders (including manufacturers of components), focusing on the key markets, organization of large-scale productions abroad.
Taking into account macro-tendencies and industry trends, KAMAZ is developing a program of actions in the following spheres:
- Integration with Daimler, strategic partnerships for components, developing the customer base;
- Boosting export supplies and setting up assembly facilities abroad;
- Launching into production Euro 4, 5 trucks and developing a range of CNG trucks;
- Developing and launching into production the new model line of trucks which have fundamentally different technical characteristics and consumer qualities (“Practical High-Tech”);
- Expanding the product range, upgrading the dealer network, developing the financial service.
Taking into account all shareholders’ objectives and interests is the basic premise of the Strategic Development Program.
Russia considers KAMAZ as its industry shaping enterprise and a major exporter of commercial vehicles, as it was formulated in “The RF Automobile Industry Development Strategy until 2020"; and a major shareholder in the company – Daimler – considers KAMAZ to be a strong regional player.
As a result of an impact from these factors, there are the following strategic priorities of the development of KAMAZ:
- key market is Russia;
- maintaining the dominant role in the CIS countries;
- presence in the attractive markets of Euroasia, Africa and South America;
- positioning itself in the medium price segment;
- developing the integration with Daimler.
The company’s strategic business development benchmarks for 2020:
- truck sales volumes – not less than 100 thousand units;
- sales share outside the RF – 30%;
- revenues – at least 350 billion rubles;
- EBITDA – at least 31.4 billion rubles;
- EBITDA, as of revenue – at least 9%;
- investments – 12.6 billion rubles (about 4% of revenue).
Implementation of the Strategic Development Program of KAMAZ OJSC is ensured by coordinated performance of the business units’ strategies and the key functional strategies, the system of planning and implementing the annual business plans, the introduction of KPI at all the management levels.
We have no, didn’t have and are not going to have any contacts with persons or entities designated under UN sanctions regimes.