Sollers has signed a loan agreement with the Industry Development Fund for the project on production of diesel engines. Under the project, the company will restart its plant in the Alabuga special economic zone (SEZ) and will involve its Tatarstan-based engineering center for development, launching and certification of new products and engineering solutions, says press center of the Ministry of Industry and Trade of the Russian Federation. In the long run, it is planned to manufacture small diesel engines with a high share of local content for various industries including shipbuilding.
“Elabuga-based plant for production of diesel engines is the most high-tech facility in Russia with modern equipment and advanced technologies. Its products are of high potential. Therefore, the project’s long-term goal is production of small diesel engines a high share of local content for the automotive industry and other industries,” said Adil Shirinov, Chairman of Sollers BoD.
The company will get a preferential loan of RUB 1.7 billion for local production of diesel engines of new generation, from 2 l to 2.7 l. Total investments are estimated at RUB 2.2 billion.
The raised funds are to be used for the purchase of new equipment, designing and manufacture of new technological equipment, software upgrades.