Supplier Novares Expanding Into Russia

Automotive supplier Novares will share a Lada factory as its first Russian engine-components production plant.

The company will begin production in May at the AvtoVAZ plant in Togliatti, where it has rented a 20,020-sq.-ft. (1,860-sq.-m) site in the industrial park which is part of the Renault-Nissan-Mitsubishi Alliance.

By the beginning of 2021, Novares will rent an additional 27,990 sq.-ft. (2,600 sq.-m) and expand production to include making and assembling roof bars.

The move is part of the company’s international expansion strategy and is the 13th manufacturing site it has inaugurated in the past seven years, as well as expanding 23 existing factories. The Togliatti site will employ 130 workers by 2021 and is anticipated to achieve €13M ($14.5M) in revenue by 2025.

It also is the third factory Novares has set up to better accompany the Renault-Nissan-Mitsubishi Alliance, following Mioveni in Romania and Kenitra in Morocco, as it increases its production capabilities.

Novares CEO Pierre Boulet says, “It is our first step into the Russian market and the site will enable us to better evaluate and develop our offer in the country as a whole.”