Russia’s GAZ Grp hopes to sign JV deal with Magnetto Wheels 2015

MOSCOW, Aug 25 (PRIME) -- Car producer GAZ Group plans to sign a contract with Magnetto Wheels (MW), a unit of Italy’s CLN S.p.A., to establish a joint venture to produce wheel disks in Russia, Kirill Epshtein, GAZ Group’s managing director, said at a car makers forum on Tuesday.

“We have signed a memorandum of understanding with Magnetto. Maybe this year we will try to sign a joint venture agreement in order to continue work in this direction,” he said.

The products of the future joint venture may be sold to Russia-based units of Volkswagen and Scoda and some other producers.

In 2013, GAZ Group and Magnetto Wheels concluded a deal to launch production of wheel disks at Gorkovsky Avtomobilny Zavod, or GAZ, the core company of the GAZ Group. Production was to be launched in 2015 and the output was expected at 2.5 million wheel disks annually.

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