Kaluga Region, which is rapidly growing in foreign factories, has acquired a new investor. The German concern Continental AG has signed an agreement on economic cooperation with the regional governor Anatoly Artamonov. Under the agreement, the Germans will invest 6 million euros in the production of automotive components in Kaluga, and 120 additional jobs will be created.
New name of Avtel plant - Continental Automotive Rus New name of Avtel plant - Continental Automotive Rus
Here it is necessary to explain that the company Continental, better known in Russia as a tire manufacturer, has in its composition an automotive component division - Powertrain Division. This asset produces brake systems, ABS, electrical equipment, car navigation, airbags, fuel devices, transmission elements, engine control units, car radios, turbines and much more.
Continental Submersible Fuel Module for VW Cars
Submersible Continental fuel module for VW cars Submersible Continental fuel module for VW cars
So far, this is a new direction for Continental - the component division was acquired four years ago from the Siemens concern. Then the Kaluga Avtel plant, which Siemens owned on a parity basis with two Russian enterprises, Autoelectronics and NPP Elkar, came over to the Germans. The Continental concern bought out a share of Russian businessmen and removed them from management.
Emerging Market Expansion
Now the Kaluga plant supplies electronic engine control units, injection nozzles, a variety of sensors and dashboard microcircuits for budget cars of domestic automobile plants. One of the main advantages of the enterprise is the availability of its own hydrogen station, which allows producing fuel ramps.
Petrol engine control unit
Control unit for gasoline engine control unit for gasoline engine
But the main aim is still at the assembly plants of foreign companies. German management does not hide the fact that the new conditions for industrial assembly (according to which automakers should significantly increase localization of production at the expense of Russian parts) have improved investment attractiveness for foreign component manufacturers.
Continental plans to increase the capacity of the Kaluga plant to 1 million parts per year. However, so far not all products can be called Russian - some components are supplied from Germany, and in Kaluga they are only repackaged and labeled for our market. According to the representatives of the company, with the development of the plant, the localization process will be brought up to 80 percent.
Injector Deka VII
Injector Deka VII Injector Deka VII