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.
Paris-based Inergy will own 51 percent of the company, with Detalstroykonstruktsiya Pf Ooo of the Samarskaya area of Russia owning the remaining shares, according to an Oct. 18 news release.
The venture will include Inergy's operations in Stavrovo, Russia, and Detalstroykonstruktsiya's plant in Togliatti, Russia. The venture will supply fuel systems for Autovaz, Ford and Autoframos, as well as 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 to benefit both the overall production increase and the expected transfer into plastic fuel tanks from steel tanks, which now account for 60 percent of the Russian market. Most central and Western European auto production uses plastic tanks.