(Yicai Global) Dec. 17 -- Fawer Automotive Parts will build a vehicle component joint-venture plant in Russia to mainly make drive shafts for commercial vehicles and expand its European market leveraging the firm’s technological advantages, the company announced yesterday.

The plant in Nizhnekamsk Industrial Park in the Republic of Tatarstan some 1,000 kilometers east of Moscow will provide parts to Russian commercial vehicle brand Kamaz’s new factory locally in its initial stage, Fawer said in its announcement, which omitted details as to production scale, start date and timetable for operation.

Fawer, which is based in Changchun, capital of Northeast China’s Jilin province, will set up the JV with registered capital of CNY15 million (USD2.3 million), operate the plant and take a 51 percent stake. Jilin Provincial Xucheng Mechanization Imp & Exp will hold 10 percent and Russia’s RCR 39 percent.

Fawer is a listed automotive parts maker spun off from China FAW Group. Its clients include leading commercial and passenger vehicle makers Volkswagen, Toyota Motor, Mercedes-Benz, BMW, Volvo, Ford Motor, China FAW Group and SAIC Motor, information on the firm's websiteshows. Its shares [SHE:000030] fell 0.57percent this morning to CNY7 (USD1.07).

Editor: Ben Armour