MAZ-KamAZ holding company feasible in H1 2014

The holding company of Belarusian MAZ and Russian KamAZ may be created in H1 2014. The statement was made by First Vice Premier of Belarus Vladimir Semashko at the session of the Council of Ministers Presidium on 17 December, BelTA has learned.

The project envisages the establishment of a holding structure by giving it the relevant packages of shares from both companies. MAZ will hand over 75% plus one share while KamAZ will hand over 49.9%.

The two companies have signed a contract with the consortium Chadbourne & Parke LLP and Sorainen for the legal analysis of the possibility of signing and executing the trust agreement on managing MAZ and KamAZ shares.

“If the decision on the effectiveness of the future structure is positive and all the prerequisites for it are available, then the matter of charter documents will be dealt with soon,” said the official. “I believe that we have all the chances of creating the joint structure, which is now named Rosbelavto on a provisional basis”.

Among the advantages the holding company will give Vladimir Semashko mentioned more markets. MAZ will be granted access to the larger sale structure that KamAZ now has, he said.

Besides, at present the product ranges of the Belarusian and Russian companies are very similar, resulting in unjustified spending on R&D, production preparation, and hence prime costs of their merchandise. “If the efforts are combined, if a common technical policy is pursued, we will save a lot of money,” Vladimir Semashko is convinced.

The union with Russian KamAZ will allow utilizing services of the Belarusian holding company Autocomponents via Rosbelavto. It will fuel the development of Belarusian companies.

Yet First Vice Premier of Belarus Vladimir Semashko mentioned several drawbacks involved in the merger. In particular, the manufacturing competence of Belarusian MAZ may be reduced.

The project involving Belarusian OAO Integral and Russian OAO Ruselectronics is expected to produce a positive effect. According to Vladimir Semashko, access to the Russian special products market will be granted. It is the primary market for Belarusian Integral these days. Apart from that, direct shipments will allow the company to save money.

First Vice Premier Vladimir Semashko informed Prime Minister of Belarus Mikhail Myasnikovich about the work done in 2013 on all the five Belarusian-Russian industrial integration projects. Apart from the abovementioned projects the five projects include Minsk Wheel Tractor Plant, OAO Peleng, and OAO Grodno Azot. All of them are priority projects for the development of the companies with regard to raising foreign investments, preserving their positions on the home market and the Russian one, and for promoting competitive products to foreign markets.