Business/economy

Expanding its international presence: Bosch lays foundation stone for new plant in Russia Automotive technology from Samara

  • Total investment of some 50 million euros
  • Start of production planned for 2015
  • Growing demand for locally produced automotive technology
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  • February 27, 2014
  • Business/economy
  • Press releases

press release

Stuttgart/Samara – The Bosch Group has laid the foundation stone for its new plant in Russia: from 2015, Bosch automotive technology will also be rolling off the assembly line in Samara. The site itself covers a total surface area of some 200,000 square meters, the equivalent of about 29 soccer fields. The buildings will offer some 22,000 square meters of floor space and will be used for manufacturing, administration, and logistics. They will also house the site's power and media supply as well as a cafeteria. By the end of 2016, the global supplier of technology and services will have invested some 50 million euros in Samara. When work is completed, some 500 associates will be working there.

As a result of low vehicle density and vehicle age – almost every second car in Russia is older than ten years – Bosch expects the country's annual vehicle production to grow continuously, from almost two million today to some three million in 2020. "The new manufacturing site in Samara is the next step in our long-term strategy. We aim to expand our presence in this region and seize the opportunities that the market offers," says Gerhard Pfeifer, president of the Bosch Group in Russia and CIS, at the official laying of the foundation stone. "This investment reflects our positive expectations of the Russian market."

Nikolai Merkushkin, the governor of the Samara region, is also pleased about the Bosch Group's investment. "The commitment of a major global player like Bosch is significant for the Samara region's economic and social development. The location is becoming more attractive for investors and local specialists alike," Merkushkin said.

Production for local customers
Until now, the Chassis Systems Control, Starter Motors and Generators, and Diesel Systems divisions have been present in Samara. In the future, the Electric Drives division will also have a home here. With the new plant, Bosch aims to manufacture automotive technologies primarily for local customers. These will include, for instance, anti-lock braking systems, starters and generators, common rail injectors for commercial vehicles, and windshield wiper systems. "By adding another local production site, we will be closer to our customers and will thus be better able to respond to their needs," said the Bosch representative Gerhard Pfeifer. "The location in the European part of Russia is perfectly suited to this aim, not least because of the region's highly-qualified specialist workforce and excellent infrastructure."

Presence in Russia
The Bosch Thermotechnology division is currently building a new manufacturing site at its Engels location. From the summer of 2014, Bosch and Buderus wall-hung boilers and industrial-scale boilers will be produced there. Bosch's Automotive Aftermarket, Gasoline Systems, Diesel Systems, and Power Tools divisions already have a presence in Engels. After Engels, Samara will be the second Bosch plant to manufacture automotive technology in Russia. In addition to this, Bosch is investing more than 100 million euros in its new Russian headquarters in Moscow, which will have a total floor space of 57,000 square meters. The official opening of the new headquarters is scheduled for the second half of 2014.

Bosch has been present in Russia since 1904. The country was one of the first outside Germany in which a sales organization was established. The Bosch Group locations in Engels, Togliatti, and St. Petersburg manufacture automotive equipment, power tools, packaging technology, and household appliances. Once thermotechnology production begins, all four Bosch business sectors – Automotive Technology, Industrial Technology, Consumer Goods, and Energy and Building Technology – will have a presence in Russia. With its more than 3,000 local associates, the company generated sales of about one billion euros in Russia in 2012.

The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). The company generated sales of 70.6 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at 118 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

Additional information is available online at www.bosch.com and www.bosch-press.com, http://twitter.com/BoschPresse.

PI8463 - February 27, 2014

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