OOO LLK-International, a fully owned subsidiary of PSJC LUKOIL, and Ford Sollers Joint Venture have signed an agreement providing for the supply of LUKOIL GENESIS oils for the first fill of Ford engines to be manufactured this year at the new Ford Sollers Plant in Elabuga. The oils have been developed in full compliance with the Ford requirements.
Ford Sollers just opened a USD 275 million engine plant in Elabuga, which will help make its Russian-produced vehicles less dependent on imported components and currency volatility. Ford Sollers aims to increase the local content of its vehicles to 60% by 2020 to qualify for lower import duties on car components. Its new engine plant in Elabuga aims to produce up to 105,000 engines a year, with the possibility of expanding production up to 200,000 units, Ford Sollers said in a statement.
After years of growth in excess of 10%, Russian car sales collapsed in 2014 as the economy shrank and the ruble weakened, due to lower crude oil prices and Western sanctions over Russias Ukrainian policy.
Participating in the foreign auto concerns localization program is one of the indisputable priorities of the LLK-International business. Supporting the program we not only invest in the scientific and technical potential of the Russian lubricant industry but also contribute towards the successful development of the vehicle manufacturing industry in the country and its higher competitive ability, said Maxim Donde, general director of LLK-International.
Launched in October 2011, Ford Sollers is a 50-50 joint venture in Russia between Ford Motor Company and Sollers. It is responsible for the production, import and distribution of all Ford products, including vehicles, parts and accessories, in Russia. Ford Sollers joint venture includes production facilities in Vsevolozhsk (St. Petersburg region), Naberezhnye Chelny and Elabuga (The Republic of Tatarstan) and headquarters located in Khimki (Moscow Region).
JV Ford Sollers produces Ford Focus and Ford Mondeo at its Vsevolozhsk plant near Saint Petersburg and six other models, including Ford Explorer and Ford Kuga at Elabuga plant in Republic of Tatarstan.
