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GENERAL INFORMATION

KEY FACTS

KAMAZ Group of Companies is the largest automobile corporation in the Russian Federation. KAMAZ PTC is one of the world's top 20 heavy duty truck producers and ranks 16th by production volumes of heavy-duty trucks with GVW exceeding 16 tonnes. Production capacity is 71 thousand vehicles a year.

The company is part of Rostec State Corporation.

The charter capital of KAMAZ comprises 35.36 bn rubles. The largest blocks of stock are owned by the government and commercial banks.

One single production base of KAMAZ PTC Group of Organizations incorporates the overall truck manufacturing cycle, beginning from design, manufacture, assembly of vehicles and components and ending up with sales of finished products and service backup.

The process flow group of companies includes several major plants involved in truck making business. The following operations are located on the industrial site in Naberezhnye Chelny: Foundry and Forge Plant, Engine Plant, Press and Stamping Plant, Automobile Plant, Repair and Tool Making Plant, Master Industrial Park. Major subsidiaries situated outside the limits of the City of Naberezhnye Chelny are NEFAZ PTC and TZA PTC (Republic of Bashkortostan).

KAMAZ Group of Companies comprises 109 organizations based in Russia, the former Soviet Union republics and other foreign countries.

By now, the enteprises of KAMAZ PTC's process chain have employed nearly 32.7 thous. persons.

In 2019, KAMAZ produced 33.5 thous. KAMAZ trucks and 38 thous. power units. In the same year, the enterprise produced spare parts worth 25.8 bn rubles, and diversification products worth 7.6 bn rubles. 

At the end of 2019 the consolidated proceeds of KAMAZ Group amounted to RUB 190 billion (compared to RUB 186 billion in 2018). Passenger transport and financial leasing turned out to be the most profitable segments. Revenue from sold out buses, trailers and special equipment were up 52% to 17.399 million rubles from last year, the group's income from leased out vehicles reached 3.642 million rubles, which is up 58% compared to 2018.

KAMAZ PTC invested 7.5% of its proceeds and continued working on a large investment project titled “Development of KAMAZ's vehicle line and manufacturing facilities”. At the end of 2019, the KAMAZ Group lost RUB 1.955 million because of the difficult situation in the Russian market of heavy trucks and the growth of cost loading involved with the company's investment cycle.

Vehicle registration data showed that, within the first 10 months of 2019, the company's share in the Russian market of trucks with a GVW of over 14 tons reached 45% against 41% a year earlier. In addition, for 10 months of 2019, KAMAZ increased its share in long-haul tractors to 25% (registered vehicles only). The company's key models in this segment are KAMAZ-5490 (4x2) and KAMAZ-65209 (6x2) truck tractors.

PRODUCTS

KAMAZ PTC produces a variety of heavy vehicles: trucks (over 60 models, over 1,500 trim versions, right-hand drive vehicles), trailers, buses, engines, power units and various tools. KAMAZ has always been holding a strong position in the market of trucks with GVW from 14 to 40 tonnes. The vehicle line has in recent years expanded due to new models ranging from metropolitan delivery trucks to higher capacity vehicles for operation as part of road trains with GVW of up to 120 tonnes. In addition, the year 2018 saw a start of serial production of KAMAZ electric buses.

QUALITY

Designing competitive products in terms of quality benchmarks which meet customers’ requirements and expectations is the pivotal aim of KAMAZ PTC in the quality area and key to the Company’s and its employees’ financial well-being and sustainability.

This goal is stated in the Quality Policy of KAMAZ PTC fixing underlying principles from which the company's quality assurance activities are built.

The tool which enables KAMAZ PTC to achieve the goals the Company has committed itself to in the area of quality is the quality management system.

The quality management system of KAMAZ PTC has been recognized to conform to the requirements of international and Russian standards:

- ISO 9001:2008, GOST ISO 9001-2011 in respect to design, development, production and sales of trucks and truck and bus chassis, vehicle components, spare parts and vehicle assembly sets, casts and die forgings, tools and accessories, truck maintenance.

- GOST RV 0015-002-2012 in respect to design, development, production, testing and sales of vehicles.

The Quality Management System of KAMAZ PTC embraces all stages of the product life-cycle from marketing and designing to maintenance of ready vehicles carried out by the manufacturer.

In 2011, КАМАZ was awarded the 5-star level in the European Competition EFQM per Recognized Excellence model, which is confirmed by the certificate; the Company has been put on the European Register of successful organizations.

In 2013, KAMAZ PTC won the 9th International Quality Tournament among the Central and Eastern European countries.

In 2015, KAMAZ PTC was awarded the diploma as one of contestants struggling for the Russian Government Quality Award.      

ASSEMBLY OPERATIONS

KAMAZ PTC has been running assembly operations in Kazakhstan, Lithuania, Azerbaijan, India. Assembly is carried out using components shipped from KAMAZ. Programs are underway to localize production of CKD kit parts and components in Kazakhstan. Euro 6 KAMAZ vehicles are assembled at the assembly enterprise of Autobagi, Lithuania. Projects are being developed to resume KAMAZ trucks assembly in Iran and Vietnam. In October 2018, KAMAZ PTC and UzAutoTRAILER LLC, which is part of Uzavtosanoat JSC, signed an agreement to establish a joint venture – KAMAZ ASIA CENTER. The KAMAZ assembly plant was officially launched in Samarkand in November 2019.

CUSTOMER BASE

Our customers are companies from all economic sectors wh ere trucks are used, haulers, regional and city truck fleets in Russia and countries of the Company’s historical presence, natural monopolies, major corporate clients, government run enterprises and institutions. Major users of KAMAZ products in this country are GAZPROM, LUKOIL, SUEK, ТNK and others.

MARKETS

KAMAZ PTC exports vehicles, CKD (complete knocked-down) kits and spare parts to more than 40 countries of the CIS, Southeast Asia, Middle East, Africa, Eastern Europe, Latin America. 

Soviet Central Asia, Kazakhstan, and also Southeast Asia became the key export markets of KAMAZ PTC in 2018. To add to this, KAMAZ trucks were for the first time ever exported to the new market of the Philippines in January 2018.  

DEALER AND SERVICE NETWORK

The sales and service network of KAMAZ PTC covers all the regions of Russia and the CIS, as well as the historical foreign markets. KAMAZ continues to actively expand its sales and service network in Russia and beyond its borders. As of December 1, 2019, the dealer network in the Russian Federation numbers 164 dealerships, out of which there are 55 3S status dealers (truck sales, spare parts sales, service support), 31 2S status dealers in vehicles (truck sales and service support), 25 2S status dealers in spare parts (spare parts sales and service support), 35 1S status dealers (service support only), 18 distributors in spare parts sales.

Underlying the service system are the principles of uniform style and maximum approximation of aftermarket services to the customer. The service network deployment has been proceeding along the two lines: construction of new service centers and reconstruction of existing service stations. In the philosophy of its dealer relations, the Company swears by a special internal document called Manual for Dealers of KAMAZ PTC which lays down all the requirements as well as terms and conditions the dealers must live up to. Certification of dealerships and service stations, pursuant to the Manual for Dealers of KAMAZ PTC, allows uniform service format and better recognition of authorized dealers by customers to be ensured, the requirements relating to organization of the dealer’s key business processes to be formalized.

Eight new dealer centers that meet the standards of KAMAZ PTC were built and put into operation in 2018. There are plans to open 7 branded dealerships more in 2019. The company changed its structure in 2018: there have been opened Resource Centers of KAMAZ TFK JSC in regions. Their key task is to provide an integrated approach to servicing the end user through interaction with the designated subjects of the dealer network, the official partners of KAMAZ PTC.

The need for their creation lies in a quick response to the conditions of market changes. The resource centers will be equipped with everything necessary for successful business development: this is the maximum range of vehicles and special vehicles presented, expensive equipment for servicing a new generation of vehicles, the development of the Trade-In direction, and the rental of KAMAZ vehicles. As of December 1, 2019, there are ten Resource Centers in the country. In 2020, the opening of new ones will continue.

LEASING

KAMAZ Leasing Company Inc. (KAMAZ-LEASING brand) is one of Russia’s largest leasing companies, a 100%-owned subsidiary of KAMAZ PTC which specializes in selling KAMAZ vehicles and special purpose vehicles based on KAMAZ chassis under the Leasing from the Manufacturer program.

КАМАZ-LEASING has been operating on the leasing market since 2002, is a three time winner of the Company of the Year award, including, among others, the prize in the nomination For Financial Sustainability and Stability in the Leasing Services Market, and the honorary title Leader of Leasing, the best leasing company in the category For Contribution to the Development of Russian Leasing by version of RUSSIAN LEASING AWARDS in 2017 and 2018. KAMAZ-Leasing Company is the laureate of the international award LEADER LEASING AWARDS-2019 in the nomination For Financial Sustainability and Stability in the Leasing Services Market, the winner of the annual contest Best Risk Management in Russia-2019 in the nomination Best Company Risk Management System. It is included in the TOP-3 players on the leasing market in the truck segment by version of Expert RA. The company is a member of the United Leasing Association. Takes part in all government programs to subsidize the industry.

Today, the company offers 5 leasing packages from the manufacturer: Big Leasing for large businesses, Leasing for the Ambitious intended for medium-scale businesses, Leasing for the Energetic for small businesses and individual entrepreneurs, Rental for those interested in purchasing of KAMAZ vehicles withdrawn from leasing, a product for official dealers of KAMAZ PTC – Leasing of Equipment for Service Centers. The company takes part in all national subsidy programs for leasing. 

Over the years of its work in the leasing market, KAMAZ-LEASING has sold more than 54 thousand units of vehicles. As of October 1, 2019, KAMAZ Leasing Company's lease portfolio is 41.7 billion rubles.

JOINT VENTURE COMPANIES

On November 23, 2005, ZF KAMA Limited Liability Company, a joint venture company was formed by ZF Friedrichshafen AG and KAMAZ PTC. That was the first production facility established by KAMAZ with participation of a foreign firm and manufacturing products under its brand name. It was also the first example wh ere industrial production operation to manufacture world class high technology products was set up in Russia. The JV annually produces 27,000 transmissions. The JV’s production capacity achieved 40 thousand transmissions a year.

In January 2006, documents on the setting-up of CUMMINS KAMA Joint Venture Company were signed between Cummins, Inc. (the USA) and KAMAZ to produce Series B engines for the Russian market. The company’s equity capital is USD 20 mn., while the participants’ stakes are 50:50. The company produces Euro 5 truck engines. In March 2017, high-capacity L-Series engines joined the lineup of CUMMINS KAMA CJSC. The joint venture produces engines from 110 to 400 hp.

In December 2007, КАМАZ signed the agreement with Knorr-Bremse Systeme für Nutzfahrzeuge GmbH on the establishment in Naberezhnye Chelny of the joint venture company KNORR-BREMSE KAMA to produce brake systems with the parties’ equal ownership interests in the equity capital.

On March 10, 2008, incorporation documents on the joint venture company were signed to produce cylinder and piston related parts between Federal Mogul Corporation (USA) and KAMAZ with the parties’ equal ownership interests in the equity capital with the company name being Federal Mogul Naberezhnye Chelny.

In December 2008, the German concern Daimler AG acquired 10% of KAMAZ equity capital, which marked the beginning of a new win-win strategic partnership between the two vehicle makers. As a result of such strategic partnership, in 2009, KAMAZ and Daimler AG signed agreements on the setting-up of two joint enterprises: Fuso KAMAZ Trucks Rus to produce and sell light commercial vehicles Fuso Canter in Russia and Mercedes-Benz Trucks Vostok to produce and sell Mercedes-Benz Actros and Axor heavy duty trucks. In 2015, the antimonopoly authorities of the European Commission approved a deal between Daimler and KAMAZ to merge these joint ventures, which made it possible to optimize administrative management and production processes. In addition, on January 21, 2016, this joint venture was renamed to DAIMLER KAMAZ RUS LLC (DK RUS). Now Daimler AG and KAMAZ PTC each own 50% of DAIMLER KAMAZ RUS shares.

On October 26, 2012, there was established KRAN Center KAMAZ LLC which, in 2015, was reorganized into a joint venture between KAMAZ PTC (51% of the authorized capital) and the international concern PALFINGER, the world's largest manufacturer of crane assembly devices. The joint venture produces special vehicles on KAMAZ chassis with Palfinger loader cranes.

КАМАZ-MASTER

In 2019, the KAMAZ-master team turned thirty-one years old. The pilots of the KAMAZ-master team constitute an outstanding example of technical and sporting skills. The racing crews from Naberezhnye Chelny have won multiple victories in international rallies and super marathons. Eighteen times the company sponsored KAMAZ-master team has won the informal world championship among truck producers, the Dakar International Rally Marathon. KAMAZ confidently converts its winning Dakar track record into success of its business.

ADVANTAGES OF THE PRODUCTS MADE BY KAMAZ PTC

  • Easy to service, reliable, high quality trucks with low operating costs at good prices;
  • Meeting any customer requirement;
  • Extensive and vast sales footprint: KAMAZ vehicles operate under any road and weather conditions, in the areas of the Far North, tropics, desert areas and high mountains;
  • Ramified service network in Russia and the CIS countries, provision of warranty service with the vehicle kilometrage of up to 75 thousand km.

All this enables the Company to perfect KAMAZ vehicles and upgrade them to the level of world industry leaders. In the domestic market, KAMAZ PTC has been waging an active, well-balanced and independent pricing policy, with primary focus on the market demand and optimal price to quality ratio.

ACHIEVEMENTS OF 2019 AND PLANS FOR THE CURRENT YEAR

In January 2019, the KAMAZ-master team became the Dakar winner for the 16th time. This year (2020), the Dakar prize went to the KAMAZ team for the 17th time!

In January, KAMAZ signed a contract with GUP Mosgortrans and delivered 100 electric buses and 36 ultra-fast charging stations to Moscow within a year. In 2018, KAMAZ won a similar tender for the supply of one hundred electric buses. A new contract for the supply of another 200 electric buses has recently been signed.

In February, the first pre-production truck of the K5 generation, KAMAZ-54901, was assembled at the KAMAZ automobile plant. The assembly of a pilot batch of 40 vehicles will be followed by the start of serial production of the key model of the company's new line.

On May 27, a new plant for cab frame production for KAMAZ and Mercedes-Benz trucks was opened.

The production of aluminum fuel tanks was launched at the KAMAZ press and stamping plant. Previously, KAMAZ purchased products abroad as the quality and volume of aluminum fuel tanks made in Russia didn't meet the company's requirements.

KAMAZ presented a prototype of the K6 generation truck. KAMAZ-54907, named KAMAZ CONTINENT. This is a prototype of the K6 line, the next step in the automaker's development.

On December 13, 2019, the KAMAZ automobile plant celebrated 50 years from the start of KAMAZ plant construction. This solemn event was held with the presence of Russian President Vladimir Putin.


KAMAZ PTC has never cooperated, is not cooperating now and will not cooperate in the future with persons, companies, countries which have UN sanctions imposed on them.

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