YANGZHOU, CHINA (July 21, 3:15 p.m. ET) — Yangzhou Auto Plastic Parts Co. Ltd. (Yapp), China's largest auto plastic fuel tank maker, has launched its first plant in Russia, a 16 million euro ($23 million) plant in Grabtsevo, near Kaluga in western Russia.
The new plant, with a capacity of 250,000 vehicle tanks a year, is near a Volkswagen assembly plant, and will also serve local PSA Peugeot Citroen and Mitsubishi plants.
Yangzhou-based Yapp's plant will employ up to 130. According to a report in the Moscow Times, if the project is successful the plant may add a second line with a capacity of 200,000 tanks per year.
Meanwhile, Yapp is preparing to establish another new plant to make fuel tanks in the Czech Republic city of Mlada Boleslav.
In China, Yapp has 10 plants and claims a 50 percent share of the domestic market.
Last year Yapp formed an international alliance with Canada's ABC Group, so the companies can work together to bid on global vehicle platforms.