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YAPP Rus Automotive Systems LLC: Everything is Just Starting for us in Russia
What were the results of the YAPP plant in Kaluga for 2016, and how do you evaluate the current situation?
For YAPP Rus, 2016 was a turning point, when we felt that Russian manufacturers are prepared to leave the negative consequences of the difficult economic situation prevailing in recent years behind, to return to pre-crisis levels and even exceed them. This second wind discovered by the market directly effects our order volumes – last year, we manufactured over 140,000 tanks, which is a 13% increase against 2015. And although this percentage gain seems insignificant, it proves to us that last year was one of positive dynamics, of profit. Due to stability regained in 2016, we are now witnessing a considerable increase in sales – something that does not remain unnoticed by our shareholders and investors.
What and for whom is YAPP Rus currently manufacturing? Where does it source its materials? Are you cooperating with companies in Kaluga? Do you plan to extend your partnerships with national manufacturers?
YAPP Rus supplies plastic fuel tanks to many Russian manufacturers: Volkswagen Group Rus LLC, PCMA RUS LLC, Ford Sollers Holding LLC, Ford Sollers Elabuga LLC, GAZ Group MC LLC and others. The main material used in our production is HDPE – high density polyethylene, which, unfortunately, we currently import from Europe, but we do hope to fully switch to Russian materials in the next few years. Cooperation with Kaluga-based manufacturers and improvement of our localization percentage is one of our key long-term objectives. YAPP Rus has long been cooperating with local suppliers of packaging and logistics services. In 2017, we signed contracts with several new Russian suppliers that successfully combine European quality with low prices. In the next few years, we plan to integrate more local companies into our supply chains.
What are the main objectives for YAPP Rus today? What are its development prospects?
Our objectives are reflected in the YAPP corporate slogan – “To be a global automotive fuel system leader”. We intend to increase the share of tanks manufactured in Kaluga on the Russian market. We are currently negotiating with our regular clients, discussing potential cooperation with plants in the CIS and Russian manufacturers of commercial and agricultural equipment. But our ambitions extend beyond market expansion also to development in accordance with our internal strategic planning. We strive to create new high-quality jobs, to continuously modernize and robotize our production facilities. Our development prospects – expansion of production and construction of a plant for manufacturing of filler necks – directly depend on the wellbeing of the Russian economy. The overall picture is quite positive. Everything is just starting for us in Russia.
The company was established in 2009 and is a subsidiary of Chinese manufacturing giant YAPP Automotive Systems Co., Ltd. that represents 30% of the global market of plastic automobile fuel systems. The company’s Kaluga plant operates since 2011. In 2012, the company built an assembly line at the GAZ automotive plant in Nizhny Novgorod. YAPP Rus clients include Volkswagen Group Rus LLC, PCMA RUS LLC, Mercedes-Benz RUS JSC, Ford Sollers Holding LLC, Ford Sollers Elabuga LLC, GAZ Group MC LLC. YAPP Rus products are certified in accordance with European standards. Apart from regular supplies to the Russian market, the company exports small shipments of fuel tanks to Europe and is currently negotiating with partners in the CIS.