Inergy Signs Russian JV with Detalstroykonstruktsiya

The new company, which is subject to approval by Russian authorities, will be the leading producer of plastic fuel systems in the local Russian market and will be 51% owned by Inergy. It will include the manufacturing assets of Inergy, which already has industrial operations in Stavrovo, and those of its Russian partner, in Togliatti. The company will supply fuel systems for Avtovaz in Togliatti, n°1 in the Russian market with a market share of 27%, Ford in Saint Petersburg and Avtoframos in Moscow, as well as for future Nissan and Renault models to be produced in Russia.

The new company, which will generate revenue of approximately €25 million in 2011, will benefit from the rapid growth of the Russian market as well as from the gradual substitution of plastic fuel tanks from steel fuel tanks, which still account for 60% of the market, whereas almost all the European fuel tanks are made of plastic.