Russia’s Sollers Grows Majority Stake in UAZ Plant

VIENNA – Russian vehicle manufacturer Sollers increases its stake in the Ulyanovsky Avtomobilny Zavod plant from 67.8% to 81%.

Sollers paid the Russian state about RR850.3 million ($26.8 million) for 546.5 million shares representing an additional 13.2% stake in UAZ, which manufactures SUVs, pickups and light-commercial vehicles. The company sold 30,165 UAZ vehicles in first-half 2013, down 4.7% from year-ago.

Sollers-Isuzu, a joint venture owned by Sollers (50%), Isuzu (45%) and the Japanese company Sojitz (5%), uses part of the UAZ plant for the assembly of Isuzu’s N-Series light-duty trucks.

In related news, UAZ is considering expanding its site in Ulyanovsk. Managing Director Vadim Shvetsov, who also is managing director and majority owner of Sollers, recently met with Sergey Morozov, governor of the Ulyanovsk region, to discuss possible development of the site.

“The basic issue of the meeting was the modernization of the company’s production site and the possibility to establish an industrial park based on UAZ,” a statement from the governor’s office says. Both parties agreed to develop a common concept for a new industrial facility including a financing model and ways to attract investors.

In addition to Isuzu, Sollers is a manufacturing or assembly partner of Ford, Mazda, Ssangyong and Toyota through JVs or cooperation agreements.