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««« APRIL 2013 »»»
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KAMAZ Group Announces IFRS Financial Statements for 2012

Implementing its comprehensive business efficiency improvement program, KAMAZ Group managed to greatly improve its financial and economic performance in 2012.

Proceeds

In 2012, KAMAZ’ sales on the Russian market remained mainly on the level of 2011. And the company showed almost equal growth rates of domestic and export sales.

The RF truck market was recovering. Though the market capacity in Russia grew by 16.5% to 116.4 thousand vehicles, the total sales volume of heavy-duty trucks didn’t reach the pre-crisis level.

KAMAZ is still the leader on the RF market. With strong rivals on the European and Asian markets, against the background of Russia’s entry into the WTO, it is natural that KAMAZ’s share on the Russian truck market has slightly decreased. The company’s market share made 33% in 2012, which is less than in 2011 when KAMAZ’s share was only 28%.

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In 2012, sales proceeds increased by RUB 10,218m or 9.6% from RUB 106,830m in 2011 to RUB 117,048m in 2012. This growth is mainly related to an increase in proceeds from sales of vehicles, trailer equipment and sales of design services.

72% of proceeds for 2012 are obtained due to sales of trucks, 12% – spare parts, 7% – sales of buses, trailers and motor mixers, 9% – other activities. Thus, the share structure of the proceeds didn’t change year over year.

A much greater growth of proceeds (+9%) against an increase in cost price (+6%) enabled KAMAZ Group to raise a gross profit margin to 16.5% in 2012 as opposed to 14% in 2011. This was achieved due to lower costs of supplied materials and components, energy efficiency projects and stricter control of overhead expenses.

Profitability

Operating profit

In 4Q 2011, KAMAZ started implementing a comprehensive business efficiency improvement program developed after the example of analogous programs of its strategic partner and shareholder – Daimler AG. The program is meant for 2 years. The first results improved the situation as far back as 2H 2011 when the enterprise broke even again for the first time after the recession, and in 2012 the company also saw a positive effect from the program.

As a result, implementing its program, KAMAZ Group managed to gain an effect of RUB 5,241m from reduced expenses in 2012 and obtain an operating profit in the amount of RUB 8,019m against RUB 3,689m in 2011; an operating profit margin made 6.9% (2011: 3.5%). Management expenses were also reduced: their share in the 2012 proceeds was 4.9% (2011: 5.8%).

In addition, it should not go unnoticed that KAMAZ’s associated companies and joint ventures showed good performance with a total revenue of RUB 43,397m in 2012 and a net profit of RUB 1,099m. The share of KAMAZ Group in the net profit of these associated companies and joint ventures, published in the consolidated statements on profit-and-loss in 2012, was RUB 526m (2011: RUB 57m). Almost all joint ventures reach an estimated capacity after 2 or 3 years of their development to receive profit and continue investing their own funds in production localization.

Net profit

KAMAZ Group’s net profit grew from RUB 1,778m to RUB 5,740m which is 4.9% in the proceeds (2011: 1.7%). Besides the above factors, the net profit grew in 2012 due to reduced financial expenses, an increase in interest yields and a profit from revaluation of the company’s exchange commitments.

Credits and loans

In comparison with performance at the beginning of 2012, KAMAZ Group’s debt load reduced by RUB 6,503m, financial debt made RUB 16,521m (as of December 31, 2011 – RUB 23,024m), and a ratio of its net debt to EBITDA decreased to 1.1. Not the least of the factors reducing the burden was KAMAZ Group’s program of centralization of liquidity management.

The financial debt was lowered due to credit repayment basically in the following banks: Sberbank – RUB 5,138m, Ak Bars Bank – RUB 1,436m, VTB Bank – RUB 1,200m. The debt was restructured: as of the end of the period, the debt includes mainly long-term credits and bonded loans attracted by the company to finance investment projects.

Investments

Investments in R&D and modernization of the basic assets made RUB 3,525m in 2012, or 3% in the proceeds (2011: RUB 3,712m, 3.5% in the proceeds).

In 2012, investments in basic assets made 74% (in 2011 – 73.5%) in the total investment. Investments in R&D and non-material assets were 25.2% (in 2011 – 23.5%) and other investments made 0.8% (in 2011 – 3%).

The key investment outlay was made on projects for development and production of a new line of KAMAZ vehicles and cabs, Euro 4 and 5 engines, and other projects under the development strategy of KAMAZ Group.

KAMAZ Group’s Financial Performance for 2012
2011 2012 Difference %
Sales of vehicles, units 45,288 45,471 183 0.4%
Russia 39,122 39,142 20 0.1%
Export 6,166 6,329 163 2.6%
Proceeds, RUB m 106,830 117,048 10,218 9.6%
Gross profit, RUB m 15,003 19,315 4,312 28.7%
Gross profit margin, % 14.0% 16.5% 2.5%
Operating profit, RUB m 3,689 8,019 4,331 117.4%
EBIT, % 3.5% 6.9% 3.4%
EBITDA, RUB m 6,361 10,484 4,123 64.8%
EBITDA, % 6.0% 9.0% 3.0%
Net profit, RUB m 1,778 5,740 3,962 222.9%
Net profit margin, % 1.7% 4.9% 3.2%
Financial debt, RUB m 23,024 16,521 -6,503 -28.2%
Fixed deposit, RUB m 7,725 4,334 -3,391 -43.9%
Funds, RUB m 3,549 1,026 -2,523 -71.1%
Net debt, RUB m 11,750 11,161 -589 -5.0%
Net debt/EBITDA 1.8 1.1 -92%

Tuesday, 30 April 2013

Oscar for KAMAZ’s CFO

Elena Milinova, Deputy General Director of OJSC KAMAZ – CFO, received a special prize at the ceremony of Russian CFO Awards-2013. The award was given to KAMAZ’s CFO for “revolutionary changes in business processes made within the shortest period of time with an instant effect on financial results of the company”.

Russian CFO Awards is like an Oscar ceremony for financiers where the most successful projects and the best experts in the Russian financial sector are awarded. This year, more than 200 leading financiers of Russia from various businesses gathered in Moscow. Russian CFO Awards was organized by the Adam Smith Institute – a leading organizer of conferences, forums, seminars and business meetings in Russia and the CIS countries. The jury consists of representatives of the New Economic School, the Higher School of Economics, the Federal Agency for State Property Management of the Russian Federation, the main mass media and other scientific organizations and companies.

The special prize was presented to Elena Milinova for successful results of her work in 2012. Despite a severe competition on the market, KAMAZ has kept its leading positions in Russia, boosted its exports, and reported a three times rise in its net profit to reach the world’s leading auto makers’ profitability benchmark. Besides, the award was given for positive results from KAMAZ’s projects, e.g. a business efficiency improvement program realized in all key business processes of the company, and also a compliance system. Though compliance was originally introduced in order to lower corruption risks, it suddenly brought an additional effect. Thus, an approach to cost estimation radically changed, because a focus moved from control over budget limits to control over expenses under signed contracts. The jury also paid attention to KAMAZ Group’s program of centralization of liquidity management which enabled to manyfold reduce OJSC KAMAZ’s debt load, and a program of restructuring of KAMAZ Group including disposal of non-core assets and businesses.

Accepting her award, Elena Milinova emphasized that she sought to make KAMAZ a modern, competitive company devoid of red-tape and corruption losses.

Monday, 29 April 2013

KAMAZ Creates Its Own Factory of Processes

KAMAZ has taken another step in the development of its production system. It has finished the construction of its Factory of Processes. All premises are completely equipped. And lean trainers have already given a test lesson.

According to Igor Medvedev, Chairman of KAMAZ’s Production System Development Committee, the obtained result is 100% compliant with lean training requirements. “Our top priority was to create the Factory of Processes at KAMAZ similar to that of Daimler,” noted Mr. Medvedev. “This is a part of integration of our production systems – Daimler’s TOS and Production System KAMAZ (PSK).”

Colleagues from Daimler – Jutta Lischke, Senior Manager OMCD, and Alexander Zam, Lean Expert and Manager OMCD, arrived at KAMAZ to see the Factory of Processes. Functionality and compact equipment of the training center impressed the German colleagues and deserved their high appraisal. According to Jutta Lischke, KAMAZ has to focus on trainers’ skills development, because it is very difficult to train and, in general, work with people.

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Daimler’s coaches will come to Naberezhnye Chelny in June in order to train managers of the automobile plant, and KAMAZ’s lean trainers will act as assistants in this training. In August, the company will organize another joint training which will be conducted by KAMAZ’s lean trainers, and the German colleagues will be in charge of the process.

The Factory of Processes will work three days a week. The teaching staff of the training center consisting of PSK development consultants, employees of KAMAZ’s Production System Development Committee, as well as trainers from outside, will train KAMAZ’s middle and top managers, and also representatives of supplying companies.


Monday, 29 April 2013

KAMAZ-LEASING Offers “Accelerated” Product

In order to promote the program “Leasing from the manufacturer”, KAMAZ-LEASING Group developed a new financial product – “Accelerated”.

This leasing offer gives a client an opportunity to obtain up to two KAMAZ vehicles with an amount of financing not exceeding 8 million roubles. And the product doesn’t include a period of waiting pause. Besides, a potential lessee will have to submit a minimum set of documents, which will enable to quickly effect a deal.

Opportunities of lease up to 36 months and an optimum advance percent, as well as an individual approach to each client’s needs, must make the financial product “Accelerated” a convenient and advantageous solution to a lessee’s transport problems.

Friday, 26 April 2013

CHELNYVODOKANAL Introduces Lean Methods

Permanent improvement and effectiveness increase of production and management processes are the main principles of the management system at ZAO CHELNYVODOKANAL.

ZAO CHELNYVODOKANAL, OJSC KAMAZ’s subsidiary, has a water intake, a treatment plant, pump stations, purification plants, about two thousand kilometers of water-supply pipeline and sewerage networks, and even its own shop for bottling Sovushka water. And the company tries to lower costs and eliminate potential losses in each of its activities.

Having adopted Production System KAMAZ (PSK), the enterprise introduced a system of collection, assessment and implementation of kaizen suggestions. According to the results of 2012, the workers of the enterprise submitted and implemented about 7,000 kaizen suggestions (4 per one worker). The total economic effect from their implementation made almost 49 million roubles. The enterprise has set a task for 2013: after the example of the mother company, to reach 5 kaizen ideas per one employee a year. Bonuses for submitting and implementing one kaizen suggestion are two hundred roubles in each case. Realizing significance of this goal, the company makes this task high-priority for competing teams.

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It is prescribed by the Declaration of Production System KAMAZ to anticipate customers’ expectations and needs, and Chelnyvodokanal is successfully implementing it: the citizens are supplied with potable water which in all parameters complies not only with sanitary standards and regulations approved by the Chief Medical Officer of the Russian Federation. It became possible due to the introduction of technologies of ultraviolet disinfection and pre-ammoniation of water. The company not only improved the quality of production, but also reduced consumption of reagents three times. Besides, Naberezhnye Chelny is a city with one of the lowest water and sewerage prices in Tatarstan.


Friday, 26 April 2013

OAO AIRPORT BEGISHEVO is Certified for Compliance with ISO 9001:2008

OAO AIRPORT BEGISHEVO, a subsidiary of OJSC KAMAZ, received a certificate of compliance of its management system with requirements of the ISO 9001:2008 international standard.

The international airport Begishevo underwent an inspection audit to confirm that its quality management system complies with the requirements of the ISO 9001:2008 international standard as regards arrivals and departures, maintenance of aircrafts, passenger and luggage service. The audit was conducted by OOO Russian Register – Civil Aviation, the only organization in Russia and the CIS countries which is very experienced in evaluating management systems for compliance with ISO 9001 standards, preparing aviation enterprises for an audit for compliance with the requirements of ISO international standards.

The audit resulted in positive confirmation.

Friday, 26 April 2013

Oil Searchers Visit KAMAZ

Representatives of the largest Russian oilfield servicing company TNG Group, Bugulma, Tatarstan, visited KAMAZ.

TNG Group’s interest in the Russian leading truck maker is attributable to the fact that the company from Bugulma carries out geological and geophysical operations aimed at exploration and development of oil and gas fields, and KAMAZ develops vehicles for oil and gas production and offers a wide range of versatile and special-purpose trucks to satisfy industry demand.

The guests visited KAMAZ’s engine plant and CUMMINS KAMA Joint Venture based on its premises, saw the mother assembly conveyor of the automobile plant and an exhibition of KAMAZ vehicles. Besides, the delegation visited KAMAZ’s official partners – RariTEK, RIAT, and ASTAIS. RariTEK, a producer of gas equipment for KAMAZ and NEFAZ vehicles, offered an especially interesting program of the visit. Thus, the guests were presented a gas service center of RariTEK, including a stand of the Lincoln Automated Lubrication System, a stand of a power system of a KAMAZ gas engine, a safety system installed on gas tanks. RariTEK’s experts shared their experience in development and production of gas-powered vehicles based on KAMAZ-65115-1865-30, KAMAZ-43114-3861-30, and KAMAZ-5297 chassis, and also showed a city bus NEFAZ-5299-30-31 and a bolster-type tractor KAMAZ-65116-34. Both the exhibits run on methane. The managers of TNG Group were interested in storage, operation and maintenance of gas-powered vehicles, their advantages over diesel analogs.

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Besides, the guests were demonstrated a block gas filling station and a mobile service center (a frame membrane shelter) on an open ground. These developments have important features: the gas filling station is in a mobile block, which gives an opportunity to place it and fill up vehicles directly on the premises of motor transport enterprises. And the mobile service center requires no building license, therefore it enables to service vehicles operating away from stationary service centers.

In conclusion of their working visit, the guests conducted negotiations with Evgeny Pronin, Deputy General Director of Sales and Service, at the general directorate of KAMAZ. The parties discussed issues of mutually advantageous cooperation.


Thursday, 25 April 2013

Sergey Kogogin at Russia Forum 2013

Sergey Kogogin, General Director of OJSC KAMAZ, participated in the Russia Forum 2013 – the key business event annually held in Moscow and devoted to economic, financial, social and political issues faced by Russian and the broader world economy. Thanks to the high-profile nature of the speakers and scale of the industry-leading agenda and high-level discussion, the Russia Forum is sometimes referred to as the “Russian Davos”.

The plenary sessions of the past Forum touched on a number of subjects ranging from relevant economic and socio-political issues to challenges and prospects in particular sectors of the economy. General Director of KAMAZ participated in the panel discussion titled “The Domestic Gas Market: on the Path to Increased Competition” which attracted many representatives of the energy industry. The panelists concentrated on the biggest questions of the domestic space: is demand growing, and is the price growth justified? In recent years, the industry has seen sweeping changes (the shale gas boom, the restricted European market for Russia), and the export potential for Russian gas currently seems limited. The domestic market is becoming more attractive, partially due to rising prices.

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Evgeny Karpel, Gazprom, forecasts that domestic demand for gas will stagnate despite reduction in production capacity and an increase in the provision of gas service across the country. The sector driver and one of the key niches may be the natural gas fuel market. Rosneft’s Nikolay Eliseev agreed and said the company needs to look at new segments – potentially, the auto sector.

In his turn, Sergey Kogogin said that it would make sense to switch 50% of the nation’s truck and bus fleet and 25% of the car fleet to that very promising form of fuel. Such a measure would create 70 billion cbm of additional annual demand for gas and help the Russian auto industry meet the Euro 4 standards immediately. “And the further transition to Euro 5 and Euro 6 wouldn’t be so financially tangible. As for the economic aspect, they talk of a tendency of lower GDP growth a lot now. Even at today’s prices, gas is thrice more efficient than petrol. We proceed from the size of the country – our logistics is expensive. Each step to reduce logistics costs may bring great profit, and this “gas attack” will help increase GDP by 3-6 percent,” Sergey Kogogin summed up.

And KAMAZ’s top manager counts on quite good prospects for NGV production. “We annually invest 3 million dollars to support the introduction of gas motor fuel. Now, the results are appreciable – we sold 170 vehicles in 2011, more than 300 units in 2012, and under this year’s contracts we will deliver over 1 thousand units,” he concluded.


Thursday, 25 April 2013

“Running” KAMAZ Vehicles

KAMAZ is taking part in the international military patriotic motor rally titled “My destiny is part of Russia’s destiny!” which has lately started in Moscow to run through all hero cities.

The rally is dedicated to the 70th anniversary of the Soviet Union’s victory in the Battle of Stalingrad against Nazi Germany and the 100th anniversary of Alexander Pokryshkin, Marshal of the Soviet Air Force. The event was organized on the initiative of DOSAAF of Russia and the Ministry of Sport under the auspices of the RF Government.

During 26 days, the motorcade of forty cars of DOSAAF, several KAMAZ vehicles and bikers of the Night Wolves motorcycle club will run through the Russian cities of military glory. The participants will carry the country’s treasures – the Banner of Victory and capsules of sacred earth from hero cities to Vladivostok in order to remind Russians of the Soviet soldiers’ great deeds. The key stops will be Pokryshkin’s home city – Novosibirsk, and also Volgograd (Stalingrad). The moving motorcade can be followed via the Internet with the help of the system of satellite monitoring of movable objects at www.webkupol.ru (login: dosaaf, password: dosaaf).

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It should be noted that all KAMAZ vehicles participating in the motor rally run on compressed natural gas. The motorcade consists of a suburban bus NEFAZ-5299-11-31, a bolster-type tractor KAMAZ-65116-34, and a dump truck KAMAZ-6520-35. Before the start of the motor rally, the representatives of the RariTEK company – KAMAZ’s distributor of CNG equipment – told about all advantages of such vehicles. KAMAZ is the only Russian producer of vehicles equipped with gas engines of its own make. And all KAMAZ vehicles, as well as NEFAZ buses, with gas equipment comply with strict Euro 4 emission standards.


Wednesday, 24 April 2013

Wristwatch from Prime Minister

Ramil Salikhov, the winner of the Best Truck Driver All-Russian professional skill contest, was awarded the Honorary Diploma of the Russian Ministry of Labour and Social Protection.

The award ceremony was held last week during an enlarged session of the board of the RF Ministry of Labour and Social Protection. Dmitry Medvedev, Chairman of the RF Government, and Maxim Topilin, Minister of Labour and Social Protection, presented diplomas for the high level of workmanship and a victory in the nominations of the first All-Russian professional skills competition.

The deserved award was also given to a young driver of the Logistics Center of OJSC KAMAZ Ramil Salikhov. Last September, he became the best among 25 participants who had arrived in Naberezhnye Chelny from various corners of the country to participate in the competition. Not only the diploma, but also a wristwatch presented by Russia’s Prime Minister will remind of the victory.

Tuesday, 23 April 2013

Gold of Kagan 2013 Rally: Results

The KAMAZ-master team won the second stage of the Russian Rally Raid Championship. Andrey Karginov, Andrey Mokeev and Igor Devyatkin finished first at Gold of Kagan 2013 Race. The crew Eduard Nikolaev – Evgeny Yakovlev – Vladimir Rybakov came in second followed by the crew Anton Shibalov – Robert Amatych – Almaz Khisamiev, the press service of the team reports.

The manager of the team – Vladimir Chagin – shares his expressions, “The full team finished the race. I’m very glad that all pilots showed good results closely following one another in the final rankings. Sergey Kupriyanov’s crew was good at the race. This is the second season of his being our teammate and a skillful and balanced pilot who impartially assesses his capabilities and knows his vehicle. He takes no risks on the track trying to protect his crew and vehicle. One of the purposes of this race was to promote JSC GAZPROM’s Gasification Program. So, the sides of his vehicle were marked “Gas Fuel” to advertise this program. In the nearest future, it is planned to install gas equipment on a sports vehicle KAMAZ which will be operated by Sergey at Silk Way.

During the race, we tested new technical features of our vehicles. We will analyze the results when we come back home. On the whole, I’m very satisfied with the results of the team and the work of our assistance group. I’d like to mention that this year’s competition was very well organized. The prepared track was very varied and interesting. Our team and all participants are going home satisfied with the struggle and prepared for the start of Silk Way.

It should be added that KAMAZ’s other three crews took places from fourth to sixth. The crew consisting of Dmitry Sotnikov, Vyacheslav Mizyukaev and Andrey Aferin ranked fourth; the crew Ayrat Mardeev – Aydar Belyaev – Anton Mirny finished fifth; Sergey Kupriyanov, Aleksandr Kupriyanov and Anatoly Tanin came in sixth.

Monday, 22 April 2013

KAMAZ’s Top Managers are Among the Best

Yury Klochkov, First Deputy General Director of OJSC KAMAZ – CEO, topped the third annual rating Industrial Elite of Russia – 100 Best Production Managers the results of which were summed up by the business portal Up-pro.ru.

The main purpose of the rating is to name the most successful managers of the industrial sector who made a great contribution to the development of their enterprises, industry, and Russia’s economy. “The best choose the best” is the main principle of this rating. More than 500 influential managers from the well-known companies named the best production managers of Russia. They assessed such criteria as introduction of new technologies, continuous quality assurance, improvement of a production system and modernization processes.

Top 100 managers entered the final rating. The list of the best industrial managers of Russia also includes Igor Medvedev, Chairman of the Production System KAMAZ Development Committee.

Monday, 22 April 2013

KAMAZ Reduces Prices of Tractor Units

Selling out vehicles produced in 2012, OJSC KAMAZ has again reduced prices of its products. Now, customers can buy two models of road tractors KAMAZ-5460 and KAMAZ-6460 at lower prices.

The company’s dealers approved of reducing prices of these higher payload models which will make KAMAZ products competitive with MAZ vehicles in their segment. Customers will manage to purchase KAMAZ-5460 260 thousand roubles and KAMAZ-6460 390 roubles cheaper than before. As a result, they will receive reliable and high-quality products at affordable prices, as these traction units offer drivers good working conditions and transport safety in accordance with the generally accepted regulations.

Powerful and heavy-duty long-haul tractors KAMAZ-5460 (4x2) and KAMAZ-6460 (6x4) are designed for interurban and international transportation of various cargoes on roads meant for vehicles with thrust load ranging from 10 to 13 tonnes. The admissible drawbar load of KAMAZ-5460 is 10.5 tonnes, and the GVW of the train with a semitrailer is 40 tonnes. The same characteristics of the KAMAZ-6460 six-wheel tractor unit are 17 tonnes and 62 tonnes, respectively.


Monday, 22 April 2013

Durable KAMAZ Vehicles for Army

Specialists of ZAO Remdiesel, KAMAZ’s partner, have lately participated in tactical exercises at the Raevsky ground near Novorossiysk (Krasnodar Krai).

The main purpose of the event is to train interaction between repair units of the 7th landing-assault division and automobile enterprises. More than 500 KAMAZ vehicles – the whole model line including proved Mustangs and special vehicles on KAMAZ chassis – were used for the manoeuvres. Equipment and tents for a mobile brigade of ZAO Remdiesel were also delivered to the training ground. The members of the brigade showed their skills in maintaining military vehicles. It should be noted that such brigades have to service military vehicles in the field, accompany them on the march, in special occasions. The mobile brigade carries out all kinds of maintenance and repair of KAMAZ vehicles, replaces tires and other main units. Besides, the brigade trains the military of the Russian Federation and provides warranty service of KAMAZ vehicles.

After the trainings, the command of the Southern Military District officially thanked OJSC KAMAZ and ZAO Remdiesel for excellent results and expressed confidence in their further mutually beneficial cooperation.

Friday, 19 April 2013

“Bus” Program from KAMAZ-LEASING Helps Passenger Carriers

Promoting leasing of products from the manufacturer of NEFAZ buses, KAMAZ-LEASING Group developed a special program “Bus” which will enable customers to purchase vehicles for passenger transportation on very beneficial terms.

Cooperation between JSC Neftekamsk Automobile Plant and KAMAZ-LEASING Group opens up new opportunities of vehicle leasing for passenger carriers. KAMAZ’s leasing company offers interesting programs for leasing gas-powered buses under the state program of subsidizing. This year, KAMAZ-LEASING will deliver 200 gas-powered NEFAZ buses to Tatarstan’s passenger carriers. The company’s clients will be able to take advantage of the new offer which is very interesting due to regional and federal subsidies and a longer lease term of 48 months. Besides, clients have an opportunity to choose a convenient schedule of lease payments.

In addition, under the “Bus” program, KAMAZ-LEASING leases small-class diesel-powered Bravis buses made by the joint venture of OJSC KAMAZ and Marcopolo. The company has long been leasing buses in close cooperation with the authorities of the largest cities of the Republic of Tatarstan and other regions of the Russian Federation.

Friday, 19 April 2013

Gold of Kagan Rally 2013: Prologue

Yesterday, on April 17, an opening ceremony of the second stage of Russia’s Gold of Kagan 2013 Rally Raid took place at the Kremlin walls in Astrakhan. Later, the first demonstrative special stage 4.95 km long passed on Gorodskoy Island.

54 crews on off-road vehicles and trucks, about 40 motorcyclists and quadricyclists will participate in the race. The track of the prologue which passed along the Volga was a beautiful, high-speed, but challenging and twisting road with difficult sand sections which turned out to be impassible for many racers. All KAMAZ crews drove flawlessly, without stops or breakdowns.

The manager of the team Vladimir Chagin told about the first day of the competition, “The crews drove their vehicles for the first time after the races in January – Africa Race and Dakar. They feel a little bit tense after such a pause, but it’s normal. The guys are driving carefully like at international competitions.”


Thursday, 18 April 2013

RF State Duma Discusses Measures to Support Russian Industry

The representatives of ministries and agencies, State Duma deputies, top managers of Russian industrial companies, experts will hold a round table meeting at the RF State Duma today.

The main issue on the agenda of the round table meeting is urgent – “Improvement of current and development of new measures to support investments and products of the domestic industry on foreign markets in view of Russia’s entry into the WTO”. The participants of the meeting plan to discuss the results of development of high-tech industry under new conditions of the WTO, evaluate new opportunities in foreign trade, discuss solutions to support and develop foreign economic activities.

The round table meeting is organized by the State Duma Committee for Economic Policy, Innovative Development and Entrepreneurship and held jointly with the Council of Experts on Innovative Development of Automotive Industry and Special Equipment under the State Duma Committee for Industry. An opening address to the participants of the meeting will be delivered by Igor Rudensky, Chairman of the State Duma Committee for Economic Policy, Innovative Development and Entrepreneurship, and Alfia Kogogina, Member of the Council of Experts on Innovative Development of Automotive Industry and Special Equipment under the State Duma Committee for Industry.

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The issues on the agenda of the meeting are the following: improvement of the system and methods of the state regulation of foreign economic activities, export credit insurance as a new instrument of supporting export in Russia, protective measures in external trade.

The representatives of the RF Ministry of Economic Development, the RF Ministry of Industry and Trade, the RF Ministry of Internal Affairs, the Federal Accreditation Service, the Federal Agency for Technical Regulation and Metrology, the Export Insurance Agency of Russia, Vnesheconombank, exporters, experts will share their professional opinions on the above mentioned issues.

Only joint and well-coordinated operation of the State Duma, interested ministries and bodies, producers and experts will enable to elaborate an effective mechanism to improve Russia’s trade policy and strategy of foreign trade activity.


Thursday, 18 April 2013

KAMAZ Complies with Global Standards

From April 15 to 18, KAMAZ’s Quality Management System (QMS) will be audited for compliance with the international standard ISO 9001, GOST R ISO 9001, and GOST RV 15.002-2009.

The company’s stability, reliability and potential are confirmed not only with its IFRS statements or strategic business plans, but also a certificate for compliance of the company’s quality management system with ISO 9001. It helps to improve management, increase competitive advantages and enhance the quality of products and services, reduce costs, and make the company customer-oriented.

To prove that OJSC KAMAZ’s actions aimed at continuous improvement of the quality of products and services are efficient, Yury Klochkov, First Deputy General Director of OJSC KAMAZ – CEO, invited Yury Minzar and other experts from Russian Register Certification Association to KAMAZ. The commission will check conformity at KAMAZ’s engine plant, automobile plant, press and stamping plant, research and development center, foundry and forge plant, finance and trading company and subdivisions of the company’s general directorate. Every day, the group of experts will hold meetings at the quality department in order to sum up the results of the audit for a day. At the final meeting, the chief expert will sum up the results of the audit and announce them.

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During this year’s audit, KAMAZ will have to confirm compliance with new versions of standards GOST RV 0015-002-2012 and GOST ISO 9001-2011. According to Yury Klochkov, top managers of OJSC KAMAZ had officially proclaimed a long-term quality policy to show their adherence to principles of the general management, “The certificate of compliance with GOST RV 0015-002-2012 is the key requirement for receiving government orders and guarantying the Ministry of Defense that, upon the receipt of an order, the enterprise will execute it efficiently and in time.”

The new version of GOST RV 0015-002 determines requirements for process control methods shared with other organizations, orders to protect information in accordance with GOST R ISO/MEK 27001, focuses on the quality policy, specifies requirements for planning processes of the life-cycle of products, determines requirements for assessment of working places after an audit for compliance of technological processes with requirements by launching production, changes requirements for assurance of the quality of technological processes, demands a full set of construction and technological documents from a company, determines stricter requirements for metrological provision (closer to the requirements of the state system for ensuring the uniformity of measurements), introduces requirements for stored products control.

Russian Register Certification Association is recognized in Russia and abroad. It is the Russian largest independent body certifying management systems, products and employees. The independence and objectivity of the association, as well as our employees’ competence are confirmed with numerous national and international accreditations and positive experience of more than 15-year activities.


Thursday, 18 April 2013

KAMAZ will Always Help

KAMAZ will assign over 697 million roubles for social needs in 2013. And the sum of social benefits to the staff under the company’s programs grows every year.

Last year, 362 KAMAZ employees improved their living conditions under the program “Housing”. This year, the company continues supporting its workers and allocates over 28 million roubles for this program, which is by 10% more than last year. It should be noted that KAMAZ resumed financing Tatarstan’s program “Social Mortgage” under which 43 employees of the company were also provided with housing in 2012. In 2013, the sum KAMAZ appropriates to finance the program is 84.4 million roubles, which will enable more than 60 KAMAZ workers to improve their housing conditions.

KAMAZ pays special attention to its youth policy: costs for the program “Youth” made 4.5 million roubles last year. The company also supports elderly people – ex-workers of the company who face difficult problems. This year’s sum of financing the program “Care” will form about 15 million roubles. In 2012, more than twenty four thousand pensioners of KAMAZ received gifts and money for the sum of over 24 million roubles from the company.

OJSC KAMAZ’s top managers approved the health improvement program “Maternity”. Its purpose is to protect health, prevent diseases and provide social support to women. 160 women working at the plant who have two and more children aged up to 16 will receive appointment cards for ten-day treatment at the day hospital of the sanatorium “Naberezhnye Chelny”. In all, the company plans to earmark 20 million roubles for the program supporting KAMAZ women.

KAMAZ also tries to prevent diseases and improve its employees’ labour productivity. Its program “Health Improvement” includes voluntary medical insurance and compensation for food costs. In 2012, the employees (61% of the staff), who ate at canteens every day, received targeted compensation for food in the amount of 154.2 million roubles. Under the contract of voluntary medical insurance, the workers of OJSC KAMAZ underwent rehabilitation treatment at the sanatorium “Naberezhnye Chelny” and other medical institutions. The total sum of funds assigned for recreation and treatment of OJSC KAMAZ’s workers is about 120 million roubles.

Besides, KAMAZ takes care of its pensioners. The company provides pensions to its workers under its Non-State Pension Provision Agreement via the First Industrial Alliance Non-State Pension Fund. As of January 1, 2013, more than 6,000 people received KAMAZ pensions. The sum of financing is 119 million roubles.

Thursday, 18 April 2013

Meeting on NGV Market Development

Viktor Zubkov, Chairman of the Gazprom Board of Directors, Chairman of the Management Committee and Director General of Gazprom Gazomotornoye Toplivo, and Tatarstan’s President Rustam Minnikhanov met to discuss the development of gas motor fuel market in Tatarstan. This is a sphere in which KAMAZ has been working successfully for a long time producing gas-powered equipment for trucks and buses.

Lenar Safin, Minister of Transport and Road Construction of the Republic of Tatarstan; Insaf Khayrullin, First Deputy Minister of Transport; Shamil Gafarov, Deputy Prime Minister of the Republic of Tatarstan, Head of the Apparat of the Cabinet of Ministers of the Republic of Tatarstan; and Rafael Batyrshin, General Director of OOO RariTEK, also participated in the meeting.

“We must increase the volume of gas supply to the domestic market. For the latest 5 years, the consumption of compressed gas grew by 27% worldwide and by 0.2% in Russia. We established the company Gazprom Gazomotornoye Toplivo which wants and can work efficiently, profoundly and quickly,” Mr. Zubkov said.

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As a result, the parties agreed to elaborate a plan to stimulate the transfer of vehicles to gas motor fuel in Tatarstan in 2013-2015. It is planned that in five years all public transport means, all municipal vehicles (except for special-purpose ones) will run on gas fuel. At the same time, new filling stations will be built.

It should be noted that KAMAZ has already mastered the production of vehicles and buses running on compressed natural gas. In the course of the working meeting with Mr. Zubkov and Mr. Minnikhanov, Sergey Kogogin, General Director of KAMAZ, noted that, with sufficient production volumes, the company was ready to equip all of its service centers with NGV maintenance stations. He also suggested a number of incentives to purchase vehicles running on gas engine fuel.


Wednesday, 17 April 2013

KAMAZ-master will Fight for Gold of Kagan

Six crews of the KAMAZ-master team will participate in the second stage of Russia’s Cup for Gold of Kagan 2013 Rally Raid.

The Gold of Kagan rally will last from April 17 to 20. The length of the track will be about 1,000 km (including 840 km of high-speed sections). Six crews will participate in the race: Eduard Nikolaev – Evgeny Yakovlev – Vladimir Rybakov; Ayrat Mardeev – Aydar Belyaev – Anton Mirny; Andrey Karginov – Andrey Mokeev – Igor Devyatkin; Anton Shibalov – Robert Amatych – Almaz Khisamiev; Dmitry Sotnikov – Vyacheslav Mizyukaev – Andrey Aferin; Sergey Kupriyanov – Aleksandr Kupriyanov – Anatoly Tanin. According to the results of the rally Gold of Kagan, the team will choose crews which will participate in the race Silk Way.

Vladimir Chagin, Director of the KAMAZ-master team, said that, participating in the stages of the Russian Championship, the team would prepare for the most important races of the year – Silk Way and Dakar. The main goal for this race is still the same: to train the racing drivers and check their vehicles. The members of the crews plan to test several new technical solutions which will be used at Dakar 2014. The fuel tank of Ayrat Mardeev’s vehicle was replaced for the sake of weight distribution. It was put along the frame and shifted as backwards as possible. Also, the fuel equipment of the engine was adjusted in order to abate smoking of exhaust which will be scrupulously controlled at the forthcoming Dakar race.

Monday, 15 April 2013

KAMAZ Vehicle from KAMAZ-LEASING for Kamchatka

KAMAZ-LEASING Group of Companies leased its new partner – OOO Vostok-Ryba (the city of Ust-Kamchatsk) – a dump truck KAMAZ-43255-010-96. The vehicle designed for cargo transportation will be used to carry fish.

The lease agreement valid for two years was signed under the lease program “On Your Terms”. The supplier of the vehicle is OJSC KAMAZ’s official dealer in Petropavlovsk-Kamchatsky.

This is the first delivery of KAMAZ’s production on leasing terms to Kamchatka. The company’s specialists believe that this is only the first fruit of their cooperation with enterprises and companies in the remote region. Besides, KAMAZ-LEASING has been cooperating with companies located thousands kilometers away from Naberezhnye Chelny. KAMAZ-LEASING is interested in all regions of the Far East.

Friday, 12 April 2013

Doors Open Day at KAMAZ

Yesterday, on the Doors Open Day, delegations of Izhevsk Heating Equipment Factory and DPO Plastik visited KAMAZ.

30 guests visited subdivisions of the general directorate of OJSC KAMAZ to see how the production system is implemented at management offices. Later, Vladimir Arzhentsov, Chairman of the Produciton System Development Commission, demonstrated the guests the main assembly conveyor, a cab assembly line and warehouses of the automobile plant. Then, a workshop on PSK development was held in the kaizen class of the automobile plant.

OJSC KAMAZ’s top managers decided to hold the Doors Open Day every month. The reason is that the company very often receives requests from different companies for visiting KAMAZ and adopting the successful practice of the Production System KAMAZ development in the company’s subdivisions and dealership centers. The next Doors Open Day is planned to be held on April 18.


Friday, 12 April 2013

New Meetings – New Projects

KAMAZ’s representatives have participated in a meeting of Rustam Minnikhanov, Tatarstan’s President, and top managers of Spain’s Ros Roca Group/INDOX, which took place at the House of Tatarstan Government.

The participants of the meeting discussed issues of mutually advantageous cooperation in the sphere of recycling and collecting solid domestic waste, the use of gas fuel for public transport, trucks, and agricultural vehicles.

During the meeting, Ros Roca Group presented its projects in the sphere of waste collection and the use of liquefied natural gas for filling vehicles. Tatarstan’s President noted that Tatarstan and Gazprom had developed a large-scale project to start using gas as motor fuel for transport, and the Spanish company’s equipment and technologies would help to do it more efficiently. Since KAMAZ is a member of the working group of this project, the meeting was attended by Nikolay Pronin, Deputy General Director of OJSC KAMAZ for Special Equipment, and Rafael Batyrshin, Director of RariTEK, KAMAZ’s official distributor producing gas-powered equipment.

Supposedly, KAMAZ heavy trucks and CNH agricultural vehicles produced at KAMAZ’s premises will be the first vehicles to start using natural gas as motor fuel.

Friday, 12 April 2013

New Ways of Education

Sergey Kogogin, General Director of OJSC KAMAZ, and Rustam Minnikhanov, Tatarstan’s President, visited classrooms and laboratories of the branch of Kazan (Volga Region) Federal University in Naberezhnye Chelny.

In the course of the meeting, Tatarstan’s President was informed of the situation in the automobile industry, today’s problems and possible solutions to them in this sphere. For example, the gap between educational and professional standards has long been discussed. Getting jobs at production enterprises, graduates have to be retrained in order to comply with the company’s requirements. Therefore, KAMAZ needs ready skillful engineers for all stages of modern vehicle production.

KAMAZ experts believe that the situation can be improved if Higher School of Automotive Engineering is established on the premises of the branch of KFU in Naberezhnye Chelny. It would help to create competitive environment for development, realization and continuous improvement of original training programs to prepare highly skilled engineers for the automobile industry. It is also necessary to open new ways of education and reform old ones, because today’s Russian automobile industry needs specialists able to introduce and support innovative developments. Besides, the opening of such a school would enable to implement a great deal of other ambitious projects of KAMAZ.

Thursday, 11 April 2013

“Pull” Production Speeds Up Procurement

A tripartite cooperation agreement valid till 2015 was signed between OJSC KAMAZ, OAO Severstal and JSCo Russian Railways in Naberezhnye Chelny.

The decision to sign this agreement was taken after the successful implementation of the project “Creation of Standard Procurement Management System” introduced by Yury Klochkov, First Deputy General Director of OJSC KAMAZ – CEO. The project was based on the notion of “pull” production which means that the volume and term of production at each manufacturing stage depend on the needs at subsequent stages (and, in the long run, customers’ requirements). This project enabled to halve losses in procurement processes and speed up supplies of metal-roll from Cherepovets to KAMAZ’s enterprises by 50%.

Last year, more than 125 representatives of RZD and Severstal visited the production facilities and offices of KAMAZ. They learned how the company uses lean manufacturing principles and implements Production System KAMAZ (PSK) at conveyors and in offices, attended lean workshops, and managed to receive answers to all questions they asked. Besides, the meetings of the working group were held at the Cherepovets Integrated Iron and Steel Works (CherMK).

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According to Yury Klochkov, the partners managed to save time of railroad transportation between Severstal and KAMAZ and on the companies’ territory. In 2012, the total volume of metal-roll delivered to KAMAZ from Cherepovets increased by more than 4 times, and the whole period of its transportation to Naberezhnye Chelny reduced by 2.2 times – from 19.3 to 8.7 days. The economic effect from this project exceeded all expectations. “Thanks to the faster delivery of cargoes by rail, lowered advance payments and expenses, we managed to save more than 121 million roubles,” KAMAZ’s CEO calculated. “This is the first successful practice in Russia when “pull” production is used to build logistics between a supplier and an end customer with the participation of Russian Railways.”

As a result, the parties agreed to continue cooperating in order to improve production processes using lean manufacturing tools. The partners will share their know-how in quality assurance, lean production technologies application, personnel motivation, and production systems development. Besides, the companies jointly organize lean trainings for their employees.

In his turn, Valentin Gapanovich, Senior Vice-President at JSCo RZD, noted that the project of that kind had been realized at JSCo RZD for the first time. According to him, in the course of practical realization of the project with the use of lean manufacturing tools, the company revealed key losses in the process of customer value creation both at the level of a consignor/consignee and at the level of a carrier, so it was actually a comprehensive analysis of the quality of the whole transportation process. “This project showed the efficiency of lean manufacturing technologies used to determine unproductive losses when organizing a transportation process, to enhance efficiency of internal technological processes due to systematic work with a shipper/receiver on cost reduction,” Mr. Gapanovich said.


Thursday, 11 April 2013

KAMAZ Stakes on the Best

KAMAZ has given the Swedish steel producer SSAB the AB category – a reliable supplier.

SSAB is the world’s largest steel producer and KAMAZ’s supplier of high-strength steel. OJSC KAMAZ usually cooperates only with reliable and efficient suppliers always trying to improve their products and introduce new technologies into production processes. To assess suppliers’ activities and categorize them according to the company’s requirements, KAMAZ checks different factors – from product quality and engineering tests to logistics. Suppliers receive grades for each parameter and the composite score once a quarter. The AB category means “Reliable Supplier”.

Andrey Chuprin, Sales Manager for Russia, Belarus, Central Asia at SSAB, confirmed that KAMAZ’s high appraisal was of great importance to the company. “We are proud that OJSC KAMAZ, the leader of the Russian truck industry, named SSAB a reliable supplier,” he said.

Wednesday, 10 April 2013

Anti-Corruption Measures of KAMAZ will Make Procurement More Transparent

KAMAZ has changed the system of working with its suppliers. The new approach will enable the company to enhance transparency, reduce expenses and lower the primary cost of products.

Firstly, the company established the Block of OJSC KAMAZ’s Deputy General Director of Purchasing. The block includes the Purchasing Center, which buys products for the main assembly conveyor of the automobile plant, and OOO STFK KAMAZ, which makes purchases for dealerships and service centers. The main task of the new block is to enhance transparency, minimize expenses and optimize procurement processes. In order to achieve this goal, KAMAZ decided to cooperate with manufacturers directly, without intermediary firms, and try to beat down prices in the course of negotiations with suppliers. These measures will help to combat parasitizing companies which sell the automobile plant overpriced raw materials and components, but purchase products at cost prices.

The adopted policy is very reasonable. Thus, since the beginning of 2013, the company has reduced expenses to the sum of over 420 million roubles, also due to lower prices of products delivered to the Purchasing Center. Besides, the company stopped working with several dishonest intermediaries who had supplied overpriced products. For instance, KAMAZ had to purchase components produced by BelOMA with a price markup of 90% (via ZAO KamZAATs), and fire extinguishers OP-2 by Yarpozhinvest were delivered to the automobile plant through Promspetssnab which marked up 60%! So, KAMAZ will strictly follow the policy of direct cooperation with manufacturers.

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Introducing the new system of cooperation with suppliers, the leader of the domestic truck industry tries to fight against corruption, ensure transparency in procurement processes and eliminate compliance risks. This work combined with optimization of working processes and reduction of compliance risks resulted in positive financial performance. According to accounting reports of KAMAZ for 2012, the company managed to reduce cost by 2% – from 96.9 billion roubles (2011) to 95 billion roubles (2012).


Wednesday, 10 April 2013

KAMAZ’s Partners Learn Lean Principles

KAMAZ held the workshop “Development of Production system KAMAZ at Plants Manufacturing Special Equipment” for more than 80 partners of the company.

The main purpose of the workshop organized by KAMAZ was to share practical experience, tell about achievements and problems in “lean manufacturing”. Since 50% of all products sold by the automobile plant is chassis, this year’s task is to keep the leadership in the market segment of special equipment. This goal can be achieved by the company only in close cooperation with special equipment manufacturers. The organizers planned to share lean ideas with KAMAZ’s partners in order to gain a higher economic effect from their cooperation. Yury Klochkov, Deputy General Director of OJSC KAMAZ – CEO, said that KAMAZ implemented lean technologies using methods of its German partner Daimler and that it was a unique opportunity for each partner enterprise to use the global know-how at their production units.

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The workshop included five master classes and tours of departments producing bus chassis and superstructures at the automobile plant. There were many managers who were familiarized with the terminology of lean production at the workshop. But some of the guests for the first time learned how to save the company’s means taking simple steps, what the difference between expenses and losses is, and why elimination of losses requires no investments.

Vladimir Ponomaryov, General Director of KAMAZ’s official dealer – RIAT, said that the enterprise had successfully adopted lean technologies. “Being not far from KAMAZ and visiting it very often, we know and understand many things,” he said. “But here I have learned new information about interesting methods which will be used to develop our Production System.” According to Aleksandr Skolkov, General Director of Grabovsky Automobile Plant, the use of lean technologies ensures annual growth of 20-30% and brings “real” money to business. “It’s a very good workshop and a very difficult theme. It is not so easy to involve a large number of employees into realization of such an important project,” he emphasized. “KAMAZ chassis is almost 50% of the total superstructure production volume, and we are lucky that we can learn advanced methods of management.”

KAMAZ started introducing “lean manufacturing” principles in 2006. This system is aimed at satisfying customers’ needs, determining and eliminating losses, rationalizing. According to Yury Klochkov, for seven years KAMAZ gained a total economic effect in the sum of 22.5 billion roubles and an accumulative effect of 59 billion roubles from the implementation of lean instruments.


Monday, 08 April 2013

KAMAZ Reduces Prices of Spare Parts

Since April 1, OOO Avtozapchast KAMAZ has lowered the prices of several spare parts for KAMAZ trucks in order to boost sales and make spare parts produced by partners more affordable.

350 most popular spare parts will become cheaper. Customers will pay less not only for domestically made spare parts, but also for components manufactured in Austria, Italy, Germany, China, Hungary, Bulgaria, and the Netherlands, e.g. by Knorr-Bremse, KOM, BelOMA, JSC Neftekamsk Automobile Plant, RIAT Plc, POWERLINE, Bosch, Wabco, etc. The company gives a discount of up to 81%. Spare parts will become, on average, one-fourth cheaper.

Thus, the company is trying to strengthen its positions on the market of spare parts and offer customers an opportunity to buy genuine components for KAMAZ vehicles at more moderate prices. It is a usual tradition for KAMAZ enterprises to organize similar actions for price reduction.

Monday, 08 April 2013

Quality is KAMAZ’s Priority

Sergey Kogogin, the company’s General Director, chaired a meeting on quality.

Having substantially analyzed the market situation, KAMAZ’s top manager emphasized that only quality could make KAMAZ vehicles competitive. Therefore it is necessary to adopt new approaches to quality assurance. According to the general director, customers prefer purchasing vehicles of a higher quality and, naturally, with a very comfortable ride even for a short period of time. Nobody will want to drive a KAMAZ truck if his or her back starts aching after 8 hours.

Sergey Kogogin reminded that the company’s top managers are responsible for quality assurance. The company has got technical regulations not for all technological processes used for production. KAMAZ’s technologists must improve the situation and renew all technological processes. The top managers will also be engaged in this activity.

“At last, we have got a financially sound company, there are no problems with finances, we show very good performance,” KAMAZ’s general director noted. “And now we have to solve the same problem with quality.” “We are currently implementing the system “Eight Loops of Quality”, Mr. Kogogin continued. “We must finish it. But to implement the system is only the first step, and then we will also change the quality management system.”

The general director will be in charge of a collegiate body – the Quality Board which will include 12 people (most of his deputies and other top managers of the company). The new body has got its goals, tasks and functions.

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Presenting the Regulations of the Quality Board, Yury Klochkov, First Deputy General Director of KAMAZ – CEO, noted that there were several reasons for establishing the Quality Board. Firstly, it is provided for by requirements of the new State Military Standard which came into force at the beginning of this year. Secondly, it was necessary to create an efficient mechanism which would enable to take decisions with the participation of top managers in order to introduce radical changes to satisfy customers’ all requirements. Thirdly, a similar collegiate body is successfully working at Daimler.

The Quality Board will develop a strategic plan in view of the company’s development prospects; consider a quality policy and set goals and tasks to raise the quality level within a certain period in various processes of the company’s QMS; introduce a process approach in quality management at the company, as well as use modern methods of quality management, etc.

It is planned to hold meetings of the Board as necessary, at least once a quarter.


Friday, 05 April 2013

Garbage Trucks from KAMAZ-LEASING for MAG Group

This year, KAMAZ-LEASING Group continues cooperating with the companies of the investment holding MAG Group. The partners signed a new leasing agreement on delivery of MST-6963-50 garbage trucks on KAMAZ-53605 chassis.

Under the signed document, six garbage trucks MST-6963-50 with rigging T1MN-17 by Farid will be leased. All vehicles will be used to collect, utilize and recycle domestic waste.

The vehicles will be supplied by ZAO Kominvest-AKMT, the company implementing the program of financial service from KAMAZ-LEASING Group.

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This is not the first lease agreement signed between the companies of MAG Group and Leasing Company KAMAZ Inc. Vehicles were delivered to MAG Group in 2012, according to the program “leasing from the manufacturer”.

MAG Group is working not only on the European part of the Russian Federation, but also trying to enter foreign markets. So, the company will continue leasing vehicles on KAMAZ chassis in the future.


Friday, 05 April 2013

CNH-KAMAZ Industrial BV Opens its Doors

The Doors Open Day was held at CNH-KAMAZ Industrial BV, the joint Russian-Italian enterprise producing agricultural equipment.

The event was devoted to the third anniversary of the JV and the thousandth tractor produced there. The company invited high guests: Sergey Kogogin, Director General of OJSC KAMAZ; Roberto Valfre di Bonzo, Director General of OOO CNH-KAMAZ Commercial BV; Alfia Kogogina, Deputy of the RF State Duma; Irek Gumerov, Director of Development at OJSC KAMAZ; Timur Nuriakhmetov, General Director of OOO CNH-KAMAZ Industrial BV.

“The CNH brand is well-known around the world. High-quality products of the company are in great demand here too. It is a guarantee of our success. And we know the Russian market inside out. We have got a well-developed infrastructure and many years of experience in different situations. As is known, a real business has no limits. It is always open to the future, and crises are no problem for it,” Sergey Kogogin said.

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The guests signed a bonnet of the jubilee tractor. The best employees of the company were awarded for their achievements.

The 50/50 joint venture CNH-KAMAZ Industrial BV was established by CNH Global N.V. and OJSC KAMAZ in January 2010. It is currently working and creating new jobs (it is planned to achieve 1,500 jobs). Its production facilities occupy an area of more than 50 square meters. The enterprise produces combines, tractors, and also construction vehicles meant for deliveries mainly to the interior market of Russia and to the CIS countries. The most popular models among purchasers are a reliable and efficient combine CX6090 and very powerful tractors T8000 and T9000. In 2010, the partners signed an agreement on establishing CNH-KAMAZ Commercial BV. The new JV sells and services agricultural and construction CNH equipment in the Russian Federation.

The joint venture CNH-KAMAZ Industrial BV sets a lot of tasks for the future. In 2013, it will produce 360 tractors and 293 combines, introduce tractors Puma 210, T7060, T8.360 and a combine AF6130 to its model line, and launch the CKD assembly of tractors. The company plans to reach 45% localization.


Thursday, 04 April 2013

Delegation from Ingushetia Visits KAMAZ

Today, on April 3, President of Ingushetia Yunus-Bek Yevkurov, politicians and businessmen of Ingushetia have arrived at KAMAZ during their business trip to Tatarstan.

The delegation includes Mukharbek Didigov, Speaker of Ingushetia’s Parliament; Pavel Puschin, Minister of Economic Development; directors of several Ingush enterprises. The guests were welcomed by Ravil Zaripov, Tatarstan’s Minister of Industry and Trade. Sergey Kogogin, General Director of OJSC KAMAZ, conducted a tour of KAMAZ for the Ingush delegation.

The program of the get-to-know-you visit includes a tour of the main assembly conveyor and a cab assembly line of the automobile plant, and a motor show at KAMAZ’s R&D Center for the guests. Later, it is planned to visit companies based on the premises of Kamsky Industrial Park Master: OOO Zavod Mashdetal, OOO LEONI Wiring Systems, and OOO Mercedes-Benz Trucks Vostok.


Wednesday, 03 April 2013

Rogozin is Satisfied with his Visit to KAMAZ

Being on a business trip to KAMAZ yesterday, Dmitry Rogozin, Deputy Prime Minister – Chairman of the Military-Industrial Commission under the RF Government, highly assessed the company’s activities. “Other companies should follow the example of KAMAZ which focuses on developing advanced products for the Russian defense industry”, he said.

Having arrived in Naberezhnye Chelny, the vice-premier and his delegation accompanied by Tatarstan’s President Rustam Minnikhanov visited several facilities of KAMAZ. Mr. Rogozin took an interest in the issues of purchasing foreign equipment and training personnel for handling foreign machines at the engine plant where CUMMINS KAMA JV is located. In his conversation with Mr. Rogozin, Sergey Kogogin, General Director of OJSC KAMAZ, noted that the joint venture was introducing the global quality standards at all production units and raising production standards. Each fourth KAMAZ vehicle is equipped with a Cummins engine. The JV produces motors mainly for medium-tonnage trucks and buses.

After a tour of the automobile plant where the guests saw the main assembly conveyor and a cab assembly line, they visited KAMAZ’s R&D Center. They were shown the next-generation models of civil trucks with modernized cabs and new models of military equipment produced at the plant, including the company’s developments – the Typhoon heavy vehicle and the Lynx (Rys) armored vehicle manufactured under license from Italy.

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After a test drive of the Typhoon vehicle, Dmitry Rogozin said that it was so easy to operate that servicemen would quickly learn to drive Typhoons. Besides, he made a special mention of high safety characteristics of the armored vehicle and expressed his impressions of driving it – “like on a huge war elephant, it can gain speed from a very light touch of the gas pedal”. The final destination of the tour was KAMAZ-master’s center where Vladimir Chagin demonstrated racing vehicles and a trophy collection of the team. Dmitry Rogozin thanked KAMAZ’s racing drivers, repeated winners of various international rallies, including the prestigious rally raid Dakar, for their selfless labour.

Sharing his impressions of the visit to KAMAZ, the vice premier said that he had seen the modern production focused on different industries of the country and global markets. “The company is working on a project to offer the armed forces up-to-date vehicles which can carry military personnel protecting them from mines, high-explosive shells and small arms, so the members of the delegation from other Russian defense enterprises would do well to learn from KAMAZ”, Mr. Rogozin said.

During a brief press conference, the vice premier told the journalists that it was necessary to solve problems which arose at the threshold of such an ambitious project as Russia’s State Armaments Program 2020. According to him, they had to build up dialog between the Ministry of Defense and industrial enterprises, so that the ministry should give orders according to its needs and industrial enterprises execute orders of the military in time, properly and for adequate money. “We’ve got means, but it is highly important to see whether our industry can not only draw funds, but also produce high-quality and reliable equipment for this money in time. Of course, we need to modernize production in order to execute government orders. Therefore we are implementing two programs simultaneously – Russia’s State Armaments Program 2020 and the federal target program Development of the Defense-Industrial Complex,” noted Dmitry Rogozin. “But here, at KAMAZ, we have received evidence that sometimes an enterprise develops products at its own expense and offers them prior to a relevant order from the Ministry of Defense. We are glad that we have such enterprises”.

In his turn, Tatarstan’s President Rustam Minnikhanov, emphasized that the leader of the Russian truck industry is of great importance to Tatarstan. “Today, we have shown state-of-the-art technologies recently adopted at the enterprise, demonstrated KAMAZ’s center of developments, put our questions – we need a proving ground, we have to solve some problems at the federal level,” Mr. Minnikhanov said. “And I think it’s a very useful trip during which we will manage to set ourselves new tasks and inform the authorities about our problems.”

After the visit to the industrial units, Dmitry Rogozin held a meeting of the Military-Industrial Commission under the RF Government at the general directorate of KAMAZ.

“We managed to see many things here and received evidence that KAMAZ has great potential for production, research and development, which enables it to develop further,” Dmitry Rogozin said opening the meeting. “It was crucially important for us not only to see what is produced for the Armed Forces of the Russian Federation, but also to learn how military men handle and service these vehicles.” According to him, the task of the Council of the Military-Industrial Commission is to quickly develop solutions in order to efficiently implement the armaments program and execute the government defense order. “The Armed Forces are thoroughly supported by the industrial enterprise which controls the operation of its products, upgrades its current models and develops new ones,” Dmitry Rogozin concluded. “So, for the future, we will be able to create armaments which will help the Russian Federation achieve the goals of the army with minimum losses and defend the interests of the vast country in a fierce struggle for resources between large military powers.”

Sergey Kogogin, General Director of OJSC KAMAZ briefly described the current level of KAMAZ’s “military” developments for the army. “It was important for us to receive requirements specifications from the Ministry of Defense with characteristics even a little bit more advanced than NATO forces have now,” he noted. “We are trying to achieve this goal, but only in our field. From my point of view, we have succeeded in it.”


Wednesday, 03 April 2013

KAMAZ Announces Results of March 2013

KAMAZ’s plants and subdivisions fulfilled the production plan for March and Q1 2013.

The automobile plant, the company’s finishing production, made 4.55 thousand vehicles sets in March and about 10.7 thousand units for the first three months of the current year.

The engine plant and CUMMINS KAMA JV produced nearly 4.5 thousand engines and power units in all in March and more than 11 thousand units for the whole quarter.

The company’s dealers, service centers and corporate clients received spare parts for KAMAZ vehicles for the sum of over RUB 1.3 billion in March and almost RUB 3.2 billion since the beginning of the year. KAMAZ’s plants and subsidiaries sold products of diversification for the sum of RUB 1.45 billion in March and more than RUB 4.28 billion for the first three months of the year. It should be noted that the company has greatly succeeded in selling spare parts and products of diversification since 2012.

Wednesday, 03 April 2013

Dmitry Rogozin Visits KAMAZ

Today, a large governmental delegation headed by Dmitry Rogozin, Deputy Prime Minister, Chairman of the Military-Industrial Commission under the Government of the Russian Federation, has arrived at KAMAZ.

The delegation included members of the Council of the Military-Industrial Commission under the Government of the Russian Federation for Equipping and Developing Armament Systems of Land Forces, Airborne Troops, the Russian Naval Infantry, Interior Troops of the Russian Ministry of Internal Affairs and Rescue Military Units of Russia’s EMERCOM – more than 30 people in all, and also representatives of the RF Ministry of Industry and Trade, the RF Ministry of Defense, etc. Accompanied by Ravil Zaripov, Tatarstan’s Minister of Industry and Trade, and Vasil Shaykhraziev, Mayor of Naberezhnye Chelny, Tatarstan’s President Rustam Minnikhanov also arrived at KAMAZ. The high guests were received by Sergey Kogogin, General Director of OJSC KAMAZ; Irek Gumerov, Director of Development; Danis Valeev, Chief Designer of the company; Dmitry Yakubovsky, General Director of CUMMINS KAMA JV, and other top managers of KAMAZ.

The delegation plans to visit KAMAZ’s engine plant and CUMMINS KAMA JV to see a Cummins cylinder block processing line.

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Later, they will visit the company’s automobile plant to see the main assembly conveyor and a cab assembly line. The guests will see research and trial facilities at KAMAZ’s R&D Center and drive a “Typhoon” multipurpose armored vehicle. The company plans to conduct a press conference for correspondents. Then, Mr. Rogozin will meet the KAMAZ-master team: the racers will demonstrate their racing vehicles which brought them a triumphant victory at the Dakar’2013 Rally Raid. One of these trucks driven by Eduard Nikolaev, the winner of the race, will take Mr. Rogozin to another destination – a special production unit.

In the afternoon, a meeting of the Council of the Military-Industrial Commission under the RF Government will take place at the general directorate of OJSC KAMAZ. The participants will discuss problems and sum up the results of the visit to KAMAZ.


Tuesday, 02 April 2013

TATNEFT is Interested in KAMAZ NGVs

In the course of their visit to KAMAZ, the representatives of JSC TATNEFT took an interest in the further expansion of their fleet of CNG equipment produced on the basis of KAMAZ vehicles.

The delegation headed by Farit Salikhov, First Deputy Director of the Transport Department at JSC TATNEFT, included representatives of the company’s transport departments. The guests managed to see a MAHA brake stand, a CNG maintenance shop, a station of gas accumulation and degassing, a mobile service center, a BI-100 CNG fueling station, a model range of NGVs, including a new product – the 55713-1K-1 mobile crane based on the gas-powered KAMAZ-65115-30 chassis, at the premises of RariTEK – KAMAZ’s distributor producing CNG equipment.

TATNEFT’s transport workers highly appreciate advantages of CNG vehicles. TANECO OJSC – the largest complex of oil-processing and petrochemical plants – uses gas-powered NEFAZ buses. One of the priorities of this project is environmental friendliness. 12 gas-powered NEFAZ-5299-11-31 buses more will be delivered there in the nearest future.

It should be recalled that Tatarstan has recently been announced the pilot region to develop Russia’s CNG market. According to the results of a meeting held in March 2013, Gazprom and Tatarstan signed a cooperation agreement to develop the CNG market. Other regions of Russia will also adopt this practice in future.

Tuesday, 02 April 2013

Repair and Instrument Plant Celebrates Jubilee

The first plant of KAMAZ – Repair and Instrument Plant – has celebrated its 40th anniversary. On March 28, 1973, the enterprise became a plant under its current name.

The Repair and Instrument Plant was the first enterprise KAMAZ built to organize preproduction and manufacture metalware. KAMAZ is currently producing a new model range, which is another challenge for the Repair and Instrument Plant.

A ceremony devoted to the jubilee was held at the Organ Hall of Naberezhnye Chelny. Yuriy Klochkov, First Deputy General Director of OJSC KAMAZ – CEO, the former top manager of KAMAZ’s first plant, congratulated all employees of the Repair and Instrument Plant in the name of KAMAZ’s top managers. “The veterans always shared their experience with the next generations here,” he said. “I wish you to always be proud of your followers”. Gumer Nuretdinov, Chairman of the Trade Union committee of OJSC KAMAZ, also addressed the employees of the plant. He thanked them for their devotedness and understanding at the time when they had to vacate the premises of the plant and move to another facility.

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Tatarstan’s Ministry of Industry and Trade, the mayor of Naberezhnye Chelny and OJSC KAMAZ awarded the best workers of the enterprise in honor of the 40th anniversary of the Repair and Instrument Plant.


Tuesday, 02 April 2013

Management Board Decides to Pay Bonuses to Employees

OJSC KAMAZ held a meeting of the Management Board to consider the company’s annual accounting report for 2012 and discuss the issue of bonus payment to employees of OJSC KAMAZ for their work in 2012.

The year 2012 was one of the most successful in the latest history of KAMAZ. For the first time after the 2008 recession, the company gained net profit on the average level of the automobile industry. This is the result of hard work of each plant and subdivision of OJSC KAMAZ aimed at efficiency improvement.

Thus, a unanimous decision was taken to pay bonuses to the company’s employees in the sum of ½ of the pay rate for their work in 2012 at the meeting of the company’s Management Board held last Friday.

Bonuses will be included in the payroll for March 2013.

Monday, 01 April 2013

KAMAZ Dealers’ Conference

The 17th annual conference of OJSC KAMAZ’s official dealers was held to sum up the results of 2012 and set tasks for 2013.

By tradition, the conference was opened by Sergey Kogogin, General Director of KAMAZ. In his address he outlined the key events of last year and the most significant tasks for dealers in 2013. According to Mr. Kogogin, in 2012 KAMAZ continued pursuing its policy of technological and technical improvement. The company mainly focused on production and labour productivity growth, as well as development of a new model line. KAMAZ has already developed samples of trucks of the new model line for testing. This year, the company plans to launch their pilot production. Despite external factors (WTO, unfavorable global economic situation, unfair competition on the part of sellers of Chinese and Korean equipment), KAMAZ is still the absolute leader on the Russian truck market with 34% in 2012. Two main tasks Mr. Kogogin set KAMAZ’s dealers are to increase the sales volume and promote Euro 4 vehicles.

The dealers also listened to speeches delivered by Evgeniy Pronin, Deputy General Director of Sales and Service, Danis Valeev, Chief Designer of KAMAZ, and other managers of the company. The participants discussed what caused a sales slump at dealerships in 2012. The situation will be improved due to a new system of dealers’ motivation. And the sellers expressed their wish to sell KAMAZ products of a higher quality.

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After the business part of the conference, the German partner of KAMAZ – Zahnrad Fabrik Friedrichshafen AG – invited all participants to enjoy a test drive of trucks and buses. The dealers managed to test trucks produced by the world-known automobile manufacturers DAF, IVECO, MAN, and KAMAZ. The participants tested vehicles with a curb weight of 40 t, and many drivers agreed that KAMAZ-5490 is not inferior to foreign heavy-duty trucks in power and smooth operation characteristics.


Monday, 01 April 2013



 

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