Daimler expands partnership with Russia’s Kamaz

FRANKFURT (BestGrowthStock) – German car and truckmaker Daimler (DAIGn.DE: ) is strengthening its partnership with Russia’s Kamaz (KMAZ.MM: ) after the two companies agreed to cooperate on axles for commercial vehicles.

“The joint venture will supply axles to Kamaz as well as to the joint venture Mercedes-Benz Trucks Vostok,” said Stefan Buchner, responsible for procurement and global powertrain operations at Daimler Trucks, in a statement on Friday.

The two parties plan to invest 50 million euros ($66.55 million) in axle production in Russia.

“The strategic partnership between Daimler Trucks and Kamaz has been further strengthened by this MoU and that our joint venture company will also supply axle components to Germany in the future,” said Sergei Kogogin, Director General of Kamaz, in the statement.

Kamaz will supply individual axle components to the Daimler axle plant in Kassel, Germany, where they will be further assembled.

Daimler, which owns an 11 percent stake in Kamaz, is keen on the Russian truck market but has greatly tempered its initial ambitions by keeping its stake in Kamaz far lower than what Moscow would like.

When Russian investment bank Troika Dialog looked to further reduce its exposure in Kamaz by selling another 5 percent of its stake to Daimler, the German group went so far as to shift 4 percent of that to the European Bank for Reconstruction and Development.

Daimler Trucks chief Andreas Renschler had earlier insisted his company was not in any hurry to expand its then-10 percent stake.

(Reporting by Christiaan Hetzner)

Daimler expands partnership with Russia’s Kamaz