PARIS (Oct. 18, 3:40 p.m. ET) — Inergy Automotive Systems is creating a new joint venture with a Russian fuel tank maker that will allow it to expand its production of blow molded fuel tanks in Russia.
Inergy, a wholly-owned subsidiary of Cie. Plastic Omnium, will own 51 percent of the company with Russia's Detalstroykonstruktsiya Pf Ooo of Samarskaya Oblast owning the remaining shares, according to an Oct. 18 news release from Paris-based Plastic Omnium.
The venture will include Inergy's existing operations in Stavrovo, Russia, and Detalstroykonstruktsiya's plant in Togliatti. The JV will supply fuel systems for Autovaz in Togliatti, Ford Motor Co.'s plant in St. Petersburg, Russia and Autoframos in Moscow as well as future Nissan and Renault models set for production in Russia.
Auto production in Russia is expected to climb to 1.8 million vehicles by 2015, up from 1 million in 2010. Inergy expects it will benefit both from the overall production increase as well the expected transfer into plastic fuel tanks from steel tanks, which currently accounts for 60 percent of the Russian market. Most Western and Central European auto production uses plastic tanks.