Company

History

A little bit of history

In mid 60-ths, in ex-USSR the problem of haulage of goods by vehicles became quite acute. The country needed a heavy-duty truck that would ensure increasing of labor cost efficiency and would by 10 times increase turnover of goods within a very tough period. None of the companies or enterprises could hit that target.

There was need in a brand new truck, that would be comfortable, heavy-duty, universal, able to operate effectively under any climate or haulage conditions; trucks that could fill in the niche of vehicles with carrying capacity from 6 to 20 ton. The regional center of Tatarstan - Naberzhnye Chelny - was chosen for building of complex of plants for truck manufacture. Thus was born KAMA Heavy-Duty Truck Production Plant, or just “KAMAZ”.

KAMAZ today is:
• a production complex, which includes 10 large specialized plants in Republic of Tatarstan (RT), and 6 big entities in Russia and CIS, which use a whole range of advanced processes and sophisticated machinery for output of up to 50,000 heavy-duty trucks and up to 75,000 of diesel engines per year;
• an automobile plant, which for its 27 years of operation has produced about 1,68 million trucks and more than 2,28 million diesel engines;
• the first Joint-stock company in Russia, established on August 23, 1990, with assets exceeding 39 billion Rubles and the level of capitalisation of USD 280 million ( as of January 1, 2003). The Company has more than 100 subsidaries and associated companies, it participated in establishment of over 50 other entities;
• the second automobile company in Russia with reference to its production volumes, and is the second among the most important companies in RT. KAMAZ funds up to 60 % of the city (Nab.Chelny) budget and covers above 8% of the budget of RT.
• a wide range of trucks and trucks with superstructures with axial load up to 13 ton and diesel engines with 360 h.p., that are exported to 30 countries all over the world and can be used with any transport and in any climate: in Polar North, tropics, deserts and highlands.
• the only truck production plant in the country, aiming to produce the whole range of trucks of its class, and constantly improving and extending its model range;
• small-size cars, trailers, buses and bus chassis, wheeled tractors, cutters and measuring tools, control units, power-generating sets and spare parts for farming machinery, wide choice of products of diversification;
• network of facilities to promote to the market the whole range of Company’s products and services, which covers every region in Russia, and the main markets in the countries of former USSR and overseas. The network includes 120 Company centers, 60 service centers and 20 Trade Houses all over Russia, more than 100 independant distributors, dealers and trade agents.
• a Company, that is cooperating with more than 600 business partners in Russia and CIS countries.
• highly qualified labor, above 50 thousand employees, working in the cities of Naberezhnye Chelny and Zainsk in RT, who meet all the demands of a functioning and dynamically growing enterprise.

Growth and Development In a severe economic crisis, that Russia faced a few years ago, KAMAZ has overcome and now it keeps increasing its production volumes and gains more profit:
in 2000 - 13,386 billion Rubles,
in 2001 - 17,197 billion Rubles,
in 2002 - 19,342 billion Rubles.

Financial status of the Company has also improved:
in 2000 – (-) 2,697 billion Rubles,
in 2001 - (+) 56,4 million Rubles,
in 2002 – (+)78 million Rubles.

That resulted in annual growth of average wage: in 2000 – 2,718 Rubles.
in 2001 – 3,597 Rubles,
in 2002 – 4,471 Rubles.

Modernization of equipment and development of new model ranges of KAMAZ vehicles is constantly in progress. On Foreign Trade Bank (Japan) loan, granted to KAMAZ in 2002, there were delivered to KAMAZ and assembled:

• 90 units of equipment for production of new generation engines;
• “Durr” painting line was mounted and tested;
• new additional facilities for small-size car body assembly and welding;
• there were introduced new facilities for bus chassis and superstructured vehicles assembly on KAMAZ chassis.

there was launched production of:
• new truck family with axial load up to 13 tons;
• new family of “Euro-1| and “Euro-2” diesel engines with 240 - 360 h.p.;
• bus chassis for city buses of high capacity, fire engines and municipal trucks based on KAMAZ chassis;
• farmer diesels based on “KamAZ” chassis;

The Foundries, Forge plant, and Frame-and-Stamping plant offer new possibilities to their customers in Russia, countries of former USSR and overseas.

KAMAZ OJSC is in the 18th of strategically important enterprises in the country. By the results of 1999-2002, the Company was recognized as the best exporter in Russia. It has exported twice as many units last year (more than 6 thousand units or 30% of the total production) vs. previous year. In accordance with its business plan for 2003, “KAMAZ Inc.” OJSC intends to produce and sell commodity output for value of 23 billion Rubles, including 24,000 trucks and 39,000 small-size cars; 3,6 billion Rubles’ spare parts and 2,4 billion Rubles’ products of diversification. It is planned to earn 112 million Rubles.

This year KAMAZ OJSC offers new service. From now on, it is possible to have a vehicle for lease. The scheme has already been developed and found its way to customers. It’s worth mentioning that it is not just the usual scheme, but is a «know-how» of KAMAZ. The main difference is that KAMAZ by itself arranges leasing and cooperates directly with a customer, who now doesn’t need to waste time on bank formalities. This scheme, developed by a Project Group under Director General Sergei Kogoghin, ensures more attractive condition for lease with reference to time and payment terms for all other participants.

A customer pays leasing fee, which is less even than inflation rate, and redemption fee without tax. Though a truck, operated under lease, is on balance of “KAMAZ Inc.”, a leaseholder still can further lease it to a third party upon agreement with the Company.

KAMAZ, as the main and the only vehicle owner, undertakes to pay property and transport taxes, to pay loan interests and insurance of financial risks. Besides, a truck operating under lease during redemption time is covered by warranty and after-sales service, provided by 128 service centers located all over the country. And after sales, a truck can still be serviced at any service center.

“Leasing from “KAMAZ” is an all-Russia program, it offers truck leasing in countries of CIS. In April, there were received orders for lease of 100 units.