Presentation IzhAvto ENG

8/17/2019 Presentation IzhAvto ENG

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IZHEVSK AUTOMOBILE PLANTCompany profile

Izhevsk, December 22, 2009


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LOCATION ADVANTAGES & LOGISTICSLOCATION AREA DETAILS

POTENTIALS FOR TRANSPORT LOGISTICS

POTENTIALS FOR STOCKING LOGISTICS

PRODUCTION CAPACITIES & TECHNOLOGY

CONTENT

HISTORY OF PRODUCTION BUILDUP

SPECIFICATION OF CURRENT LINEUP

PRODUCTION SITE

BASIC PRODUCTION

COMPONENTS PRODUCTION

ENGINEERING INFRASTRUCTURE

INFORMATION TECHNOLOGIES (IT)

ENGINEERING SUPPORT & DEVELOPMENTS

DEALERS NETWORKDEALERS NETWORK DATA

QUALITY SYSTEMQUALITY SYSTEM DETAILS

QUALITY SYSTEM BENCHMARKS

HUMAN RESOURCESLABOR STAFF SELECTION & ADAPTATION

FLEXIBLE SYSTEM OF STAFF SELECTION

SUMMARY

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Pages

IZHEVSK AUTOMOBILE PLANTCompany profile

Izhevsk, December 22, 2009

The additional information on technical and economic indicators "ОJSC

IzhAvto" and market conditions in which the enterprise works, is available on

demand via e-mail. Please, enclose the following information: company

name, official information, personal information and Contacts.

E-mail address: [email protected]

http://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_1/[email protected]


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LOCATION ADVANTAGES & LOGISTICSLocation area details

Moscow agglomeration

S.-Petersburg agglomeration

Rostov

agglomeration

Nizhny Novgorod

agglomeration

Chelyabinsk agglomeration

Vladivostok agglomeration

Mining operations

Samara-Togliatti

agglomeration

Удмуртская

республика

Kazan agglomeration

Ekaterinburg agglomeration

Krasnoyarsk

agglomeration

Irkutsk

agglomeration

Khabarovsk

agglomeration

Manufacturing activities

17%

83%

Volga Federal

District (PFD)23%

77%

Mining operations Manufacturing activities

Крупнейшие агломерации России

1. Urals Federal District = 45%

2. Volga Federal District = 17%

3. Central Federal District = 11%

LOCATION OF MINING AREAS & INDUSTRIAL SITES OVER RUSSIA.

Good geographic & economic position ofОАО IzhAvto adds to its competitive advantages.

Located between the major agglomerations of

Central, Volga and Urals Federal Districts, in

close vicinity of metallurgical, oil-refining,

chemistry and machining industrial centers,

Izhevsk automobile plant possesses ample

opportunities in selecting suppliers.

Izhevsk, Udmurt Republic, IzhAvto

3

1. Central Federal District = 31%

2. Volga Federal District =23%

3. North-West Federal District = 12%

Volga Federal

District (PFD)


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LOCATION ADVANTAGES & LOGISTICS

Location area details

Location of major CAR ASSEMBLY PLANTS IN RUSSIA (passenger cars & LCV).

AVTOVAZ

950,000 units per year

Ford Motor Manufacturing Rus


IzhAvto (KIA)

220,000(360,000) units per year

Toyota Motor Manufacturing Rus


TagAZ (Hyundai)


AVTOFRAMOS (Renault)


Sollers (Fiat)


Sollers (Fiat, SsangYong)


GM Manufacturing Rus (Chevrolet, Opel)


GM-AVTOVAZ


NISSAN Motor Manufacturing Rus


AVTOTOR (KIA,Chevrolet, BMW)


Sollers (Isuzu)


GAZ

65,000+200,000 units per year

IzhevskTaganrog

N. Novgorod

ElabugaUlyanovsk

Togliatti

Kaliningrad

Kaluga Moscow

Nab. Chelny

St. PetersburgVsevolozhsk

Sollers


UAZ


8%

92%

Available

production capacities

in Russia amount to

2,880,000 units per year

Production capacities of

IzhAvto plant

(220,000 units per year

with potential buildup

to 360,000 units per year)

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2 0 0 0 к м

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1 5 0 0 к м

2 0 0 0 к м

Volkswagen Group Rus (VW, Skoda, Audi),


4

Vladivostok


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COMPONENTS PRODUCTION SITES IN RUSSIA.

Udmurt Republic: plastic goods, foam polyurethane products, metal roll,

fuels & lubricants, components, materials, automotive wiring harnesses

Bashkortostan republic: materials,

components, fixtures, technical chemistry,

chemicals, automotive glass

Republic of Tatarstan: automobile tires, electric equipment, components, fuels &

lubricants, tools, foam polyurethane products, materials, technical chemistry,

chemicals

Orenburg

region: units

Chelyabinsk region: units,

plastic products, steel sheet, steel band

Sverdlovsk region: rubber technical goods,

tools, paper goods, catalytic converters, pipes

Ryazan region.:

units

Kirov region: paints, chemicals

Perm area: rubber technical goods, units,

fuels & lubricants, tools

Vologda region: steel sheets,

steel band, section steel

Moscow region: electric equipment, units,

components, metal roll, paints, materials, tools

Vladimir region: lightingequipment, components, electric

equipment

Kaluga region: electric

equipment, components

Yaroslavl region: brake systems, plastics,motors, paints and sealants

Tver region:

compressors, electricequipment

Leningrad region: compressors, batteries, wheel tires, plastics,

brake systems, filters, paints and sealants, tools

Samara region: climate control units, electric equipment, units, plastic goods,

components, hot lead-coated sheet steel, materials, tools, wiring harnesses,

plastic goods

Ulyanovsk region: units,

components, materials, electric

equipment

Saratov region: rubber

technical goods

Nizhny Novgorod region: components,

materials, fuels & lubricants, technical

chemistry, automotive glass

5 0 0 к м

1 0 0 0 к м

1 5 0 0 к м

2 0 0 0 к м

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1 0 0 0 к м

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5


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IzhAvto

6

Udmurtia is a republic with a well-developed industry and

diversified agricultural production. Udmurtia boasts the highest

concentration of defense plants in Russia. The republic has

ample oil reserves, though there is no oil refining.

Industry. The basic sectors of industry inUdmurtia include machine building, metal working, ferrous

metallurgy and woodworking industry.

Energy industry is represented by a complex of heat power

plants (in cities Izhevsk, Sarapul, Votkinsk, Glazov) and

Votkinsk hydraulic power station. Metallurgy is concentrated in

Izhevsk, foundry – in Izhevsk and Votkinsk.

There can be singled out the production of bearings, equipment

for oil fields, hunting and sporting guns,

chemical processing equipment, machine tool building.

A significant portion of Udmurtian plants is related to the

military-industrial complex of Russia.

An automotive components sector holds a special place and is

focused on Russian car makers within the Volga Federal

District of RF.

Basic social and economic indices of the Udmurt

Republic:

Economically active population in Udmurtia is 859,500

people

Industrial production in Udmurtia is 225,500 billion rub.Average pay (industry) in Udmurtia is12,400 rub.

Basic social and economic indices of Izhevsk city:

Economically active population of Izhevsk is 395,700

people

Industrial production of Izhevsk is 90,6 billion rub.

Average pay (industry) in Izhevsk is 15,000 rubles




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7

MAJOR REGIONAL INDUSTRIAL PLANTS IN UDMURTIA.



ООО Glazov UPP VOS, Glazov Motor vehicle and motorcycle wiring

harnesses.

OAO CHEPETSKY MECHANICAL PLANT, Glazov Products from zirconium alloy,

calcium metal and its compounds.

ОАО Izhevsk Plastic Plant, Izhevsk Blow molded products, large-size molded

products, foamed polyurethane packings , thermal insulation materials.

NITI PROGRESS, Izhevsk Machinery for electron-beam welding, non-standard

welding facilities, tire industry equipment.

OAO BUMMASH PLANT, Izhevsk Forgings, machined forgings and shafts, dies

and special-purpose tools , pipes.

OOO ERGON, Izhevsk Foamed polyurethane products, sound deadeners.

OAO IZHEVSK TOOL PLANT Cutting and auxiliary tools, gages , fixtures,

casting and forging tooling.

OAO IZHEVSK RADIO PLANT, Izhevsk On-board telemetric and radio

engineering complexes, chip assemblies on ceramics, low noise amplifiers,

sealed lead-ins, etc., safety and automatics systems , navigation equipment

for navigation systems GLONASS/GPS, FM wirelesses, PCBs, nylon

(polyamide) ribbon cables (daisy chain), surface mounting products , tooling:

molds , dies , gages, measuring and cutting tools (design , manufacturing and

delivery), casting and molding, manufacturing of cross-equipment.

OAO AKSION CONCERN, Izhevsk Electric and electronic components – light

equipment control modules, communication hardware, LED- based light

devices.

FGUP IZHEVSK MECHANICAL PLANT, Izhevsk Castings, propeller shafts,

compressors, electric tools.

OOO IZHEVSK UPP SPUTNIK VOS, Izhevsk Cables, links, rods and small-size

stampings.

ZAO LUTCH, Izhevsk Plastics molding.

ОАО Sarapul Electric Generator Plant, Sarapul Electric emplifiers, alternators.

ОАО Sarapul Radio Plant Holding, Sarapul Radio, music complexes, aerials,

speakers.

ОАО ELECOND, Sarapul Blow molded general rubber goods from

thermoplastic rubber-reinforced polymers.


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8



MAJOR REGIONAL INDUSTRIAL PLANTS IN UDMURTIA.

OAO IZHSTEEL, Izhevsk Metal products from structural carbon and

alloyed steel, tool carbon & alloyed steel, high-speed, stainless steel

– rolled & sized section, steel with special surface finishing, various

purpose wires, cold rolled & flat-rolled band, high precision shapedsection, stampings and forgings.

NIIMT – RESEARCH INSTITUTE OF METALLURGICAL TECHNLOGIES,

Izhevsk

Major products:

1. Forgings from tool & high alloyed steels.

2. Thin-walled precision pipes with submicron finished surfaces from

stainless nano-modified nitrogen-containing steels with enhanced

corrosion resistance and strength properties.

3. High-strength hot rolled seamless tubes from various steels and

alloys, including stainless steel of improved properties, titanium and

special alloys.

4. Complicated high-loaded parts from high-strength powderedmetals.

5. Structural stock from nonferrous metals and difficult-to- form

alloys.

6. Ingots of induction, vacuum-induction, electroflux, plasma-arc re-

melting.

7. Volumetric nitriding of ingots during electroflux re-melting.

8. Nitrided ferroalloys with high nitrogen content.

9. Nano-size alloy materials.

10. Shafts of multi-layer materials made of tool & structural steels.

11. Superlight armor.

12. Centrifugal casting process to manufacture sleeves, inserts, liners,

bands, rollers, roller jackets, brake drums, oven rolls, shells, bi-metal

bushes and tubes, couplings from synthetic iron, steel andnonferrous metals.

ZAO Izhevsk EXPERIMENTAL MECHANICAL PLANT, Izhevsk Production

of bars with special surface finishing for front suspension springs.

OOO - MEGALIT, Izhevsk Production of tailor-made pre-machined

casting blanks and parts with minimum allowance vs drawing-set

sizes. Parts machining according to customer’s drawings (sleeves,

liners, wheels, plates, parts and spares for press-forging equipment,

parts and spares for welding equipment).


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LABOR COST (BASED NOMINAL WAGE LEVEL IN RUSSIAN REGIONS)

IzhAvto,Izhevsk, Udmurtia

An average wage level in Udmurtia (industry) is 12,400 rubles, being 2,000 to 20,000 rubles below the wages in some other industrial centers, such

as Moscow region and Moscow, Leningrad region and Saint-Petersburg, Nizhny Novgorod region, Samara region, Republic of Tatarstan.

Eventually, this helps reduce production costs when comparing with other RF regions.

9

below 11,000 rubles

between 11,000 & 13,000 rubles

between 13,001 & 20,000 rubles

over 20,000 rubles




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DISTRIBUTION OF EMPLOYEES IN TERMS OF WAGE SIZE AMONG SOME CONSTITUENT ENTITIES OF THE RUSSIAN FEDERATION

in % to the total number of employees.

As it can be seen from the above labor

market research, in regions with operating

car plants, the Udmurt Republic is the least

expensive in terms of manpower recruiting.

Ulyanovsk region

Samara region

Nizhny Novgorod region

Republic of Tatarstan

Udmurt Republic

Kaliningrad region

Saint-Petersburg

Leningrad region

Moscow

Moscow region

Kaluga region

Russian Federation

below 5000 rubles per month

between 5000 and 10,000 rubles per month

between 10,000 and 15,000 rubles per month




over 50,000 rubles per month 10




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ECONOMIC ACTIVITY OF POPULATION AGED 15 TO 72 YEARS AMONG SOME CONSTITUENT ENTITIES OF THE RUSSIAN FEDERATION.

in thousand people

The Udmurt Republic has considerable human resources, including substantial portion of idle population.

11



employed

peopleunemployed

Russian Federation 74 844,9 67 761,3 7 083,6 66,9 60,5 9,5

Kaluga region 576,8 530,3 46,5 72,6 66,7 8,1

Moscow region 3 672,4 3 502,6 169,8 68,8 65,6 4,6

Moscow city 6 144,1 5 915,5 228,6 72,3 69,6 3,7

Leninigrad region 911,4 829,3 82,1 69,5 63,2 9,0

Saint-Petersburg city 2 734,0 2 630,2 103,8 74,4 71,5 3,8

Kaliningrad region 501,9 445,8 56,1 66,7 59,2 11,2

Udmurt Republic 859,5 771,3 88,1 71,6 64,3 10,3

Republic of Tatarstan 1 962,3 1 763,5 198,8 67,0 60,2 10,1

Nizhny Novgorod region 1 801,0 1 667,7 133,3 68,1 63,1 7,4

Samara region 1 683,0 1 591,0 92,0 66,3 62,6 5,5

Ulianovsk region 683,2 622,3 60,9 65,2 59,4 8,9

Portion of economically

active population,%

Employment

rate,%

Unemployment

rate,%

includingEconomically

active population,

thousand people


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EDUCATION LEVEL.

At present, the state educational institutions of Udmurtia total over 68,000 students at higher educational institutions, 40,000 students in specialized

secondary schools (over 50 engineering professions) and 17,800 students in vocational (trade) schools (150 trade programs).

Over 6500 qualified workers leave annually basic vocational colleges and schools in Izhevsk.Basic schools for automotive industry encompass Izhevsk automechanical college, polytechnic school, vocational schools which train on such trades as car

repair man, electric and gas welder, maintenance man, etc.

Among specialized secondary education institutions, the basic ones for automotive industry include Izhevsk industrial technical college and Izhevsk

polytechnic school which train on “manufacturing engineering“, "specialized machine tools and equipment", "metal cutting/machining" (according to

sector of industry), "technical maintenance & repair of motor transport",

"logistics & transport management (according to mode of transport), etc.

The major institution for automotive industry in the sphere of higher education is Izhevsk State Technical University founded in 1952 on the basis of

Moscow Technical University named after Bauman, evacuated from Moscow during the Great Patriotic War (World War II, 1941-1945).12



Number of

educationalinstitutions,

units

Number of graduates

per annum,

thousand people

Number of

institutions andbranches,

units

Number of graduates

per annum,

thousand people

Number of

institutions andbranches, units

(major\branches)

Number of graduates

per annum,

thousand people

Russian Federation 2 963 493,3 3 287 631,7 1134\1663 1 125,3

Kaluga region 26 2,3 26 4,2 5\22 4,8

Moscow region 105 15,5 130 18,8 33\96 23,0

Moscow city 58 16,3 206 29,8 276\3 168,0

Leninigrad region 27 4,0 32 2,2 3\36 2,0

Saint-Petersburg city 62 14,1 63 19,6 90\11 73,6

Kaliningrad region 15 3,1 16 2,7 8\22 5,5

Udmurt Republic 40 6,5 38 8,9 7\17 13,2

Republic of Tatarstan 80 17,5 85 15,2 33\53 30,4

Nizhny Novgorod region 83 10,2 93 16,0 6\32 33,4

Samara region 54 8,6 80 15,2 29\34 26,6

Ulianovsk region 31 4,2 41 9,3 6\11 9,1

Institutions of intermediate vocational

educationInstitutions of highest vocational educationInstitutions of basic vocational education


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LOCATION ADVANTAGES & LOGISTICSPotentials for transport logistics

TRANSPORT CORRIDORS OF EURASIA

1 000 km

Ирак

-Centers of automobile industry

of Europe & Asia

The vicinity of Eurasian transport corridor, passing

through the territory of Udmurt Republic, provides

certain benefits for transport logistics. This is especially

important for deploying the state strategy to further

develop the transport system of the RF. Elimination ofvarious bottlenecks and enhanced throughput efficiency

of transport network will enable a faster freight

turnover, while infrastructure development will improve

the quality of transport & logistics services in the RF.

The key strategic objectives in Russian transport system

development are:

- 2 to 4-times increase in RF transport systems

performance;

- higher commercial speed of main commodity flows:

1st phase: to reach 800 - 1000 km/day (in developed

countries it is 1400 km/day) by 2020;

2nd phase: to reach 1400 km/day by 2030;

- en-route time (hours per day): at least 20;

- urgent and in-time deliveries to reduce the stock for

guaranteed commercial production:

1st phase: to be 6-8 days by 2020,

2nd phase: to be 3-6 days by 2030 (level of developed

countries);

It will eventually cut the unit transport costs in the price

of finished product:

1st phase: to go down to 15% (the current level inRussia is 35%) by 2020,

2nd phase: to go down to 13% (level of developed

countries) by 2030; power intensity to go down by 20%

vs 2007; yield of capital investments to go up 30% vs

2007.

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LOCATION ADVANTAGES & LOGISTICSPotentials for stocking logistics

STORAGE FACILITIES OF IZHAVTO.

14

Bonded

warehouse

of paints

Petrol storage dormant)

Bonded warehouse for

DKD parts in containers

Bonded warehouse

for parts in

containers and on

pallets

Bonded warehouse for DKD

parts

CKD parts storage

and repacking

warehouse

Storage of general

purpose materials

Base depot

of metals

Solvent storage

Storage of noxious

substances

Storage of

unmarketable

materials

Petrol

storage

Storage of

painted plastic

parts

Storage of KD parts for

assembly

Fixture

storage 1)

Fixture

storage 2)

Storage of

materials for

repair and

maintenance

Storage of KD parts

for welding

Storage of KD parts

for welding

Spares and

accessories

storage


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IZHAVTO INBOUND LOGISTICS PERFORMANCE.

15

Storage facilities.

The storage facilities of Izhevsk car plant include a complex of commodity-oriented stores which meet specific

requirements to keeping and processing different material resources.

Storage facilities are one of the links in IzhAvto logistics chain and cover both indoors and separate outdoors depots.

The total storage area is 64,520 sq.m, including 17,230 sq.m of bonded warehouses. In addition, IzhAvto has available

an extensive system of rooms at -7.2 m level, which total 85,680 sq.m, where only 35,560 sq.m are currently used for

production purposes.

In terms of organization and structure, the storages belong to the production procurement shop, finished product

shipping shop, production and auxiliary shops.Direct and indirect auxiliary materials, components are all delivered to the plant by trucks and railroad.

The plant has a ramified system of railways. The total length of railroad within the plant is12.6 km. The number of

dead sidings is 16, where 8 sidings go inside the buildings and to the open-air storage of finished product shop.

Freight turnover.

The plant‟s design (for the annual output of 220,000 vehicles) allows to take to the plant 63,700 ton of goods by

trucks and 364,200 ton of goods by railroad. It also allows to take from the plant 112,000 ton of goods by truck and

200,000 ton by railroad. In view of available free space, IzhAvto can increase its freight turnover to cover the potential annual output of 360,000 vehicles.

In-plant transport operations and material handling are in charge of storage & retrieval department through the use of

motor vehicles, motor and electric fork lift trucks, transport trolleys and shuttles. The overall length of motor roads

within the plant is 16 km.

LOCATION ADVANTAGES & LOGISTICSPotentials for stocking logistics


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PRODUCTION CAPACITIES AND TECHNOLOGYHistory of production buildup

HISTORY OF LINE-UP DEVELOPMENT

HISTORY OF PRODUCTION BUILDUP

16

1965 – START OF AUTOMOBILE PLANT CONSTRUCTION

1966 – IN DECEMBER, ROLLING OF THE FIRST IZHEVSK PRODUCTION MOSKVICH-408 VEHICLE OFF THE ASSEMBLY LINE

1967 – IN DECEMBER, LAUNCH OF PRODUCTION OF IMPROVED MODEL - MOSKVICH-412

1971 – LAUNCH OF PRODUCTION OF IZH MODELS ON THE BASIS OF MOSKVICH-412 VEHICLE, i.e. IZH-2125 COMBI, IZH-2715WAGON TRUCK, IZH-27151 COMMERCIAL VEHICLE AND IZH-27156 ESTATE CAR

1988 – RECORD PRODUCTION TURNOUT – ALMOST AS MANY AS 190,000 CARS

1991 – LARGE-SCALE PRODUCTION OF IZH-2126 VEHICLE

2000 – IN MARCH, AFFILIATION OF THE PLANT GETTING UNDER SOK GROUP CONTROL. END OF 90-TH YEARS PRODUCTION

FALLING-OFF PERIOD

2000 – GRAND-PRIX OF ZA RULEM MAGAZINE IN CATEGORY „YEAR BREAKTHROUGH‟

2001 – LAUNCH OF VAZ-2106 VEHICLE PRODUCTION

2002 – LAUNCH OF VAZ-2104 VEHICLE PRODUCTION

2003 – FEB 6TH, ROLLING OF 4-MILLIONTH VEHICLE OFF OAO IzhAvto ASSEMBLY LINE

2004 – LARGE-SCALE PRODUCTION OF FABULA VEHICLE

March 2004 – SKD ASSEMBLY OF THE FIRST KIA Spectra CAR LOT, PREPARATIONS FOR THE VEHICLE FULL-SCALE PRODUCTION

2005

Aug. 22 – LAUNCH OF KIA Spectra CAR PRODUCTION AT IZHEVSK AUTOMOBILE PLANT;

Oct. 21 – CELEBRATION OF THE PLANT 40-YEAR ANNIVERSARY

Oct. 28 – START OF KIA Spectra CAR SHIPPING TO DEALERS INTO ALL THE REGIONS

Dec. – LARGE-SCALE PRODUCTION OF THE TRUCK ON THE BASIS OF VAZ-2104 VEHICLE

2006

Apr. 27 – ROLLING OF 10-THOUSANDTH KIA Spectra CAR OFF OAO IzhAvto ASSEMBLY LINE

Dec. 22 – launch of KIA Rio DKD assembly2007 March – launch of KIA Sorento DKD assembly

2008 June – launch of KIA Sorento full-scale production


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PRODUCTION CAPACITIES AND TECHNOLOGY

History of production buildup

HISTORY OF VEHICLE PRODUCTION BUILDUP AT IZHEVSK AUTOMOBILE PLANT.

100

200

1966

year

Vehicle

throughput,

thousand units per year

1970

year

1980

year

1990

year

2000

year

2009

year

max. 188,7 units1988 year

min. 8,0 units1997 year

64,2 units2008 year

10,9 units2009 year

17


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PRODUCTION CAPACITIES AND TECHNOLOGYProduction line-up specifications

IZH-27175 vehicle GENERAL DATA.

IZH-27175 vehicle specification: IZH-27175 model is a commercial version of IZH-2717 car on the basis ofVAZ-2104 car components.

A new IZH-27175 commercial vehicle is not only as good as its predecessor, but can

also boast a number of more attractive consumer properties.

A large percentage of parts, unified with VAZ vehicle components, has added much to

car technological effectiveness and resulted in a more reliable car, easy to maintain and

cheaper in the field.

IZH-27175 vehicles are built within the main processing chain of OAO IzhAvto,

therefore retrofitted welding facilities are used for their production. IZH-27175 body is

painted together with Kia Spectra and VAZ-2104 cars in the same paint line which

features new modern equipment and ED process. For 27175 body painting mainly

domestic manufacturers‟ paints are used. IZH-27175 vehicle is built in a version with arear liftgate and drop backboard.

Price segment of IZH-27175 vehicle (brand / price in thousand rubles)

200

Basic specification price, thousand rubles

300 400 500 600 700 800

ВИС Lada /240

Citroen Berlingo /274

Lada на базе Renault Logan /310

FIAT Doblo /399

Opel Combo Van /423 Peugeot Partner /426

Renault Kangoo /451

Ford Tourneo /483

Ford Transit /503

Skoda Praktik /539

Volkswagen Caddy /561

100

ИЖ 27175 /195

18

Body type commercial vehicle

Driving model 4х2, rear-wheel drive

Dimensions, mm 4300х1660х1810Wheel base, mm 2 700

Carrying capacity, kg 605

Stowable luggage, cu.m 4

Type of engine VAZ-21067

Fuel system port injection system (Euro 2)

Engine capacity, cu.cm 1 568

Max.power, kW/ rpm (HP) 54.5/5000 (74)

Fuel tank, litre 50

Gearbox manual, 5-speed

Rear suspensionconventional, spring-type with hydraulic shock -absorbers

(commonized with IZH 2717 vehicle)

Front suspensionindependent, wishbone arms, coil springs, telescopichydraulic shock-absorber, anti-roll bar (commonized with

VAZ 2104 vehicle)

Fuel consumption, l/100 km

at 90 km/h / 120 km/h / urban driving6.7 / 8.7 / 11

Max.speed, km/h 120


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VAZ-2104 CAR GENERAL DATA

VAZ-2104 car specification: VAZ-21041 estate car is a really convenient and comfortable vehicle. Itanswers both purposes - passenger carriage and various loads transportation, either it is

long-distance or in-city trips. It is also a good choice for carrying goods to smaller sales

outlets or for transporting whatever crop you have grown in your garden.

VAZ-21041 car features a roomy passenger compartment, its tailgate floor split line

makes goods handling much easier. When necessary, the rear seat can be folded. The

car is low-maintenance and reliable in operation.

Price segment of VAZ-2104 vehicle (brand / price in thousand rubles)

19

Basic specification price, thousand rubles

Body type station wagon

Driving model 4х2, rear-wheel drive

Dimensions, mm 4115х1620х1443Wheel base, mm 2 424

Stowable luggage, cu.m 0.63 /1.23

Type of engine VAZ-21067

Fuel system port inject system (Euro 2)

Engine capacity, cu.cm 1 568

Max.power, kW/ rpm (HP) 54.5 / 5000 (74)

Fuel tank, litre 42

Gearbox manual, 5-speed

Rear suspension

conventional, ri gid beam joined to bodyshell via one

Panhard rod and four trailing arms; coil springs;

telescopic shock-absorbers

Front suspension independent; wishbone arms, coil springs, telescopichydraulic shock-absorbers, anti-roll bar

Fuel consumption, l/100 km

at 90 km/ h /120 km/h / urban driving7.3 / 9.6 / 9.8

Max.speed, km/h 143

Accelerati on , 0-100 km/h, sec. 17


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KIA Spectra GENERAL DATA

KIA Spectra specification:Spectra car is designed for those who equally values style, comfort, calmness and

safety.

The vehicle is fitted with 1.6 liter gasoline engine, 101.5 hp. The built-in front

suspension compression control valve dampens vibration on rough roads. Thereinforced brake pads help evenly distribute loads, while their larger area enhances the

braking effectiveness. The stabilizer bars add to better road behavior and steerability. A

longer front end and good aerodynamic body shape create the impression of fast but

smooth movement. The passenger compartment of this notchback is convenient both to

its driver and passengers. The heater and air conditioner are operated by handy control

knobs. All seats have proven proportions and convenient side support. The optimum

distance between front and rear seats allows passengers to feel comfortable even during

long-miles trips.

Price segment of KIA Spectra car (brand / price in thousand rubles)

20Basic specification price, thousand rubles

Body type

Driving model

Engine capacity, cu.cmMax.power, hp

Fuel tank, litre

Gearbox manual 5-speed automatic 4-speed

Dimensions, mm

Stowable luggage, litre

Kerbweight, kg 1169-1245 1200-1276

Type of engine

Front / rear suspension

Fuel consumption

at 90 km/h /120 km/h / urban driving5.9 / 7.6 / 10.2 6.2 / 7.9 / 11.2

Max.speed, km/h 180 170

Acceleration, 0-100 km/h, sec. 13 16

440

1.6 l DOHC, petrol, port injection system

independent, s pring-type, MacPherson, anti-roll bar

sedan

4х2, front wheel drive

1 594102

50

4510х1720х1415


21/60


22/60



23/60

PRODUCTION CAPACITIES AND TECHNOLOGYBasic production

ПРОИЗВОДСТВЕННЫЕ МОЩНОСТИ ИЖЕВСКОГО АВТОМОБИЛЬНОГО ЗАВОДА.

* The available free production area and extended infrastructure allow to increase IzhAvto capacities

(subject to additional investments) to 360,000 units per year at 2-shift operation.

The available area can also be used for setting up the production of power plants (engine and

transmission) up to 300,000 units.23

Type of production Current capacities,thousand units per year

Potential (additional)

capacities*, thousand units peryear

Stapmping 350 +10

Welding 280 +80

Paint 220 +140Plastic paint 50 +310

Assembly 315 +45

TOTAL 350



24/60


LAYOUT OF basement AREA AT (-7.20) m LEVEL.

24

NON-OCCUPIED AREAS NON-OCCUPIED AREAS

NON-OCCUPIED AREAS

NON-OCCUPIED AREAS

NON-OCCUPIED AREAS



25/60


STAMPING SHOP The stamping shop launches the basic production flow. It covers metal cutting, processing and parts

stamping.

Blanking area: production cycle starts with blanking area with facilities for automatic slitting, shaped

blank cutting (KOMATSU, Japan), shearing equipment.

Production area – 35,000 sq.m

Large-size parts stamping:

Area – 42,000 sq.m

Production capacity – 350,000 kits.

List of equipment:

- 5 lines of 400 ton force, including main presses of 800 ton force (year of manufacture - 1971,

Renault, France) – to stamp parts of fuel tank, bulkhead, wing shield, front struts);

- 1 line of extra-large presses of 1200 ton force, including main press of 2000 ton (year ofmanufacture - 1971, Renault, France) – to stamp roof, floor, etc.;

- 24 lines of 250 to 800 ton force to make outside panels and car body stampings, ERFURT, Germany

(year of manufacture 1970 -1996);

- automatic line L8T3200 of 3200 ton force, KOMATSU, Japan, year of manufacture - 1996, to stamp

outside parts (door panels, hood, wings).

Middle-sized and small parts stamping:

Area – 26,756 sq.m.

Production capacity – 350,000 kits.List of equipment:

- power presses of 16 to 400 ton force, made in Russia;

- automated machinery complexes – presses of 40 to 200 ton force with automatic band feeding;

- ERFURT automatic presses of 100 ton force - 4 units;

- automatic gripped-feed lines 150 AD of 100 ton force, made in Russia – 6 units;

- ERFURT fine blanking press of LEINHAAS system, 450 ton force, year of manufacture – 199625



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WELDING SHOP

26

The welding complex and manufacturing process of Izhevsk Automobile Plant ensure the welding

quality and body geometry on a conceptually new level: body is checked by CMM, with over 800

critical points on body & separate units being daily monitored to prove the parameters set by

engineering documentation.

Total production area - 99,500 sq.m.

Total capacity of welding facilities – up to 360,000 units per year.

Welding production of VAZ 2104, IZH 27175 vehicles

Area – 47,600 sq.m

Design capacity of current lines: VAZ 2104 – 70,000 vehicles per year, IZH 27175 – 30,000

vehicles per year

List of equipment:

- VAZ 21043 body welding main buck (manufactured by OOO NITI Progress, Russia);

- IZH 27175 body welding main buck (manufactured by OAO IzhAvto, Russia);

- VAZ 21043 and IZH 27175 floor welding line (manufactured by FIAT, Italy);- VAZ 21043, IZH 271752 finish line, Russia;

- front RH/LH pillar welding line (manufactured by OAO AVTOVAZ, Russia)

- multispot welders (manufactured by OAO AVTOVAZ, Russia)

- welding stations OOO NITI Progress, OAO IzhAvto (manufactured by OAO AVTOVAZ, Russia)

KIA Spectra welding production

Total area of the building with KIA Body Shop is 13,000 sq.m, including:

- occupied area – 7,000 sq.m.

- free area – 6,000 sq.m.

Capacity – 45,000 bodies per year

List of equipment:

- welding station for body sides and body side units with manual respot;

- welding line of wing shield, front end, base plate with manual respot;

- line of body build and welding;

- body welding in a jig system by robots (6 units) with further manual respot;

- finish line.



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27

KIA Sorento Body Shop

Process area: 2,000 sq.m.

Production capacity: 15,000 bodies per year

Body welding process encompasses 8 welding lines:

- front floor welding line;

- central floor welding line;- rear floor welding line;

- complete floor line;

- RH body side welding line;

- LH body side welding line;

- body build line;

- finish line.

Equipment supplier: METIA, Korea

Welding Shop (IZH – Oda family)

Production capacity: 165(180),000 bodies per yearAutomatic welding lines:

- 2 lines – wing shield (wheel apron),

- 2 lines – engine compartment,

- 3 lines – floor,

- 4 lines – body sides,

- 1 line – body,

- 2 lines – doors,

- 1 line – hood,

- 2 lines – body respot welding

List of equipment:

- KUKA welding robots – KRC 50/50 – 157 units,

- BOSCH weld controllers (PSS2081.50) – 186 units,

- DEMAG frequency converters DRU.

Currently, the equipment is removed from operation and is preserved in good condition. Other models can be

welded, following the relevant equipment change-over.

Control system (CS): local CS are made on the basis of SIEMENS controllers. In the buffer storages the

original CS is installed.



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PAINT SHOP.

28


Production area: 55,000 sq.m

Total capacity of body paint complex: 220,000 units per year

Body paint production capacities can be increased up to 360,000 units per year through

available free areas or additional work shifts.

A new paint line can potentially use modern paint materials for body pretreatment and top coating,

allowing both solid and metallic paints. The main supplier of paint materials is Kumgang Korea

Chemical Co. (KCC).

The paint complex includes several process lines:

PT and ED lines (with 2-component primer),

sealing and UBS lines,

adhesive primer line, base and clear coat application lines.

There are 12 robots in paint process to apply secondary primer, first and second layers of top coat

and clear coat.

List of PT & primer lines equipment:

1. PT plant – methods and materials of Henkel company (10 rinse stages: 1 – hot water; 2-3 -

degreasing; 4-5 – water; 6 – activating; 7 – phosphating; 8-10 – water and DI water) – 1 unit.

2. ED plant – two-component ED paint of 4th generation (6 application stages: 1 – ED coating; 2-4

– UF rinsing; 5-6 – DI water rinsing) – 1 unit.3. ED oven tunnel – 1 unit.

4. ED coating repair line, sealing and UBS (underbody sealing) line – 2 units.

5. Sealing oven tunnel – 1 unit.

6. Coagulation system (system of separation paint and return water) – 2 units.

7. Sealing and UBS preparation units – 2 units.

8. DI water plant – 1 set.

9. Coating repair line (for coarse defects) – 1 unit.



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29

PRO UCTION CAPACITI S AN T CHNO OGYBasic production

List of equipment for solid and metallic coating:

1. Primer line – 3 robots (Bell system - electrostatics).

2. Mini-paint mix plant for color primers (4 systems) – 1 set.

3. Secondary primer dry-off tunnel – 1 unit

4. Line for primer defect rectification – 2 units

5. Spray line for two-coat base (acrylic paints) –

3 robots for 1st base coat (Bell system - electrostatics),

3 robots for 2nd base coat (system of air atomizers),3 robots for clear coat (Bell spray – electrostatics)

(4 systems + 3 mini systems).

6. Base dry-off tunnel – 2 units

7. Line for minor defect rectification and paint quality inspection – 2 units.

8. Paint mix room (new) – 1 set.

9. Technological air conditioners (modernized) – 6 units

Control System (CS):

- centralized industrial control system, including process monitoring, production planning, body flow tracking, material usage. There is a

control room (paint shop synoptics);

- central and local control systems are based on SIEMENS controllers;

- control system allows to concurrently paint bodies in 7 colors;

- DURR robots in primer and base coat booths.

The remarkable fact is that equipment and technology, supplied by DURR (Korea) and refined by IzhAvto and IzhEnergoservis, render

possible to run PT and paint processes in one chain, including KIA Sorento frame and IZH-27175 canopy, in any sequence, using

simultaneously 7 different colors.

Application of state-of-the-art paint technologies helped extend the perforation corrosion warranty for domestic models from 3 to 6 years.

Plastic Parts Paint Shop

Production area: 3800 sq.m.

Total capacity of plastic parts paint complex: 50,000 kits per year.

Manufacturing process includes flaming activation of part surface by the in-line robot to enhance material adhesion properties and is done

on a floor-type monorail conveyor.

List of equipment:

plastic part pretreatment line, transport system, flaming station, base and clear coats spray line

Equipment supplier: DURR (France, Korea).

The safety aspect of the paint shop can be proved by the fact that in 2008 Izhevsk Automobile Plant was ranked 23rd among “green”

Russian Federation factories of the Russian Greenpeace branch. Among Udmurt Republic “green” factories IzhAvto took the 1st rating

position.

Equipment supplier: DURR (France, Korea). The equipment installed provides a complete close-loop cycle. The production totally

eliminated any harmful releases into atmosphere and discharges to sewage collection system.



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ASSEMBLY SHOP.

30

Basic production

Total capacity of Assembly Shop: 315,000 units per year. There is a potential to build the

capacity up to 360,000 vehicles per year through available free areas and equipment.

IzhAvto has universal assembly equipment for making passenger cars of practically any class

and complexity.

KIA Spectra Assembly Shop

Area – 13,600 sq.m

Capacity – 80,000 units per year

List of equipment:

- trim line (floor-type single-track slat conveyor), 2005, DONGНЕЕ ROFA CO. LTD, Korea;

- chassis line (power and free conveyor), 2005, DONGНЕЕ ROFA CO. LTD, Korea;

- final line (floor-type double slat conveyor), 2005, DONGНЕЕ ROFA CO. LTD, Korea;

- test line, 2005, HANKOOK ВЕР. СО, Korea

VAZ, IZH car Assembly Shop

Area – 33,000 sq.m

Design capacity – 220,000 units per year

List of equipment:

- trim line,1970, RENAULT, France, BOSH, Germany, OAO IzhAvto, Russia, HOFMANN,

Germany:

- interior trim line (2 parallel lines of P&F conveyor);

- assembly line (2 parallel lines of P&F conveyor converging to floor-type slat conveyors);- road test line (tests, finishing).

- circular floor-type conveyor to mount power plant and suspension, 1970, SIETAM, France;

- power plant subassembly slat conveyor 4P-17A, 1970, Russia,

- rear axle subassembly slat conveyor 4P-18A, 1970, Russia

- wheel assembly line, 1970, HOFMANN, Germany (share participation of OAO IzhAvto,

Russia)



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31

Basic production

KIA Sorento Assembly Shop

Production areas: 3500 sq.m

Production capacity: 15,000 units per year

Body assembly manufacturing process involves 4 lines:

- trim line;- slat line;

- frame assembly line;

- test line.

Equipment supplier: DONGHEE, Korea

VAZ-2104 and KIA Spectra assembly conveyors are housed in the same building and

run parallel. KIA Sorento vehicles are assembled on a separate line, while IZH-27175

and VAZ-2104 vehicles are assembled on the same line.

Assembly process covers trim line, chassis line and final line, including areas for engine,

suspension, instrument panel and other units sub-assembly

After additional quality inspection by quality control specialists, vehicles go to test line

for front and rear wheel alignment, roller dynamic test,

electric system test, KIA airbags activation,

interior leak test in shower booth and others.

Before going to finished product warehouse, final inspection of some spec parameters is

done, including paint quality and anticorrosion treatment of body & motor bay recess

areas.



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Parts production

PARTS PRODUCTION.

32

Wheels production.

Area – 1,368 sq.m

Capacity – 900,000 units per year

List of equipment:

- ERFURT automatic press of 3350 ton-force for wheel disk production, year of manufacture - 1996;

- KizErling tire rim forming line, year of manufacture – 1972;

- Sciaki wheel spot welding line, year of manufacture – 1972.

Fuel tank production

Area – 864 sq.m

Capacity – 220,000 kits

List of equipment:

- Projection, spot welding machines of MP 4020, МТ-1610 type and portable guns of MTP – 1111 type,

made in Russia;

- Seam welder for fuel tank semi-housings of MSH-3207 type – 2 pcs. , made in Russia, year of

manufacture - 1989;

- Seam welder for fuel tank semi-housings, ARO 72500, made in France, year of manufacture –

2007;

- Gas and arc welding stations of PDG – 312 type, made in Russia;

- Fuel tank leak tester (in water bath, at compressed air pressure for prohibiting tank swelling).

KIA Spectra fuel tanks production is arranged under the localization program: production sites are

prepared, equipment and tooling are purchased. Design capacity of the production is 45,000 units per

year.

Exhaust system productionArea – 2,160 sq.m

Capacity – 220,000 units

List of equipment:

- IUNG pipe-cutting machine;

- DESKAM pipe-bending NC machine,CHR-2A;

- EAGLE pipe end flaring and notching machines - 8 units;

- DESKAM silencer assembly and inner units expansion machine, MC-0822 - 1 unit;

- DESKAM MCL 96 automatic line for silencer production.



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Parts production

33

KD parts production

KIA Spectra exhaust system production was set up within the localization framework:

production sites are duly arranged, equipment and tooling are purchased. Design capacity of the production is

45,000 kits per year.

Rear axle production

Area – 11,232 m²Capacity – 220,000 kits per year, 2-shift operation

List of equipment:

- KROSS (UK) automatic line for differential machining – 1 unit;

- KROSS (UK) automatic line for axle housing machining – 1 unit;

- TAEDA SOMQ (Japan) automatic line for differential case polishing – 1 unit;

- MAUSER (Germany) automatic line for gear unit machining – 1 unit;

- KROSS (UK) automatic line for gear unit assembly – 1 unit.

- Gleason gear broaching semi-automatic machine, USA – 4 units;

- Gleason high-speed machine, USA – 6 units;

- Gleason gear lapping semi-automatic machine, USA – 5 units;- Gleason gear generator, USA – 9 units;

- Gleason sharpener, USA – 2 units;

Seats production

Site area – 9,720 sq.m

Design capacity – 220,000 kits per year at 2-shift operation.

Current capacities: VAZ 21043 vehicle - 40,000 units per year, one-shift operation; 13,000 units per year of

KD kits, one-shift operation; IZH 2717 vehicle – 15,000 units per year, one-shift operation; KIA Spectra

vehicle – 45,000 units per year, two-shift operation

Total manpower – 130 people

Includes seat frame welding areas, seat cover fabrication and final assembly.

Plastic parts production

Plastic parts production is one of the youngest divisions in the plant.

Production area: 14,300 sq.m

Production is equipped with 29 modern automatic molding machine (DEMAG, Germany,1997), and relevant

auxiliary equipment for wide range of interior and exterior plastic parts.

The following materials are used: polypropylene, polyethylene, polystyrene, ABS, ABS - PC, PVC, formaldehyde

polymers, polyamide, polycarbonate, thermoplastic elastomer.



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Parts production

Technical data of plastic parts production equipment:

Automatic molding machines (Germany).

All automatic molding machines are equipped with compact automatic feeders as well as thermostats for mold temperature control.

Extrusion blow molding equipment (Krupp-Kauteks).

Equipment (Galino) for manufacturing foam parts.

34

Type Number, units Closing force, kN Shot volume, cu.mErgoTECH 110-310H/80V 1 1100 168/42

ErgoTECH 420/1450 3 4200 763

ErgoTECH 500/2300 3 5000 1212ErgoTECH 500/3300 4 5000 1779

ErgoTECH 650/3300 5 6500 1779

ErgoTECH 800/5200 1 8000 2835

ErgoTECH 1000/5200 4 10000 2835

ErgoTECH 1000/8000 3 10000 4375

ErgoTECH 1300/12000 2 13000 6730

ErgoTECH 2200/12900 1 21150 6500

ErgoTECH 2700/12900 2 27000 Izhevsk Plastic Plant

Type Number Application

КЕБ 10.01.-60.01 2 To make air ducts and seervice fluid tanks Izhevsk Plastic Plant

Type Number Application

6818012; 682338 2 To make headrest & seat cushion fillers Izhevsk Plastic Plant

532503 1 To make instrument panels and sunvisors ООО ERGON, Izhevsk

Type Max.sheet size, mm Max.molding area, mm

Max.molding height,

mm Sheet thickness, mm

KF-4/160x45 1600 x 800 1 520 x 720 450 positive 40331

VFP-2000-II 2000 x 1000 1900 x 900 450 positive /500 negative 40453

Max.width, mm Min.width, mm Sheet thickness, mm Max.output, kg/h

1300 900 0,4 – 4,0 400

PRODUCTION CAPACITIES AND TECHNOLOGYP t d ti


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Parts production

35

Frame welding

Project designer and equipment supplier: Jaeil Laboratories, Inc. (Korea)

Design capacity: 10,000 units per year

Number of shifts: 2

Manpower: 17 persons, where 15 are direct workers

STATION STATION #157 STATION #156 STATION #155 STATION #154 STATION #153 STATION #152 STATION # 151JOB INSPECTION & REPAIR RESPOT JIG PRE-BUCK JIG PRE-BUCK JIG RESPOT JIG PRE-BUCK JIG PRE-BUCK JIG

OPERATOR 1 2 (2) 2 (2) 2 2

PARTS 20 22 20 12

INSPECTION & REPAIR

FACILITIES 1J IG & ACCESSORIES 1 J IG & ACCESSORIES 1 J IG & ACCESSORIES 1 J IG & ACCESSORIES 1 J IG & ACCESSORIES 1 J IG & ACCESSORIES 1

CO2 WELDER (REPAIR)

2CO2 WELDER 2 CO2 WELDER 2 CO2 WELDER 2 CO2 WELDER 4 CO2 WELDER 2 CO2 WELDER 2

HOIST 1 HOIST 1 HOIST 1 HOIST 1 HOIST 1 HOIST 1 HOIST 3

#156 ASSEMBLY #155 ASSEMBLY #154 ASSEMBLY #153 ASSEMBLY #152 ASSEMBLY #151 ASSEMBLYSIDE MEMBER ASSY

LH/RH

BRACKET-BODY

SUPPORT

BRACKET ASSY,

DIFFERENTIAL MOUNT,

LH/RH

PILLAR ASSY, FR, LH/RHCROSS-MEMBER ASSY.-

FR SUSPENSION

PILLAR ASSY, RR, LH/RH BRACKET, RR SHOCK-ABSORBER, LH/RH

BRACKET ASSY, FR,TOP ARM #1, LH/RH

CROSS-MEMBER ASSY-GEARBOX

RADIATOR BRACKET

ASSY, TOP, LH/RH

BRACKET ASSY, FR

BUFFER, LH/RH

BRACKET ASSY, FR,

TOP ARM #2, LH/RH

CROSS-MEMBER ASSY-

FUEL TANK

RADIATOR BRACKET,

BOTTOM, LH/RHHOOK ASSY, FR.

BRACKET ASSY, FUEL

TANK, #1

CROSS-MEMBER ASSY--

SPARE WHEEL

BRACKET ASSY, ENGINE

MOUNT, LH/RH, etc .

SPARE WHEEL

BRACKET, etc.

SILENCER SUSPENSION

RING #3, etc..

CROSS-MEMBER ASSY-

RR SUSPENSION, etc.

WELD SEAM LENGTH 8822 mm 7506 mm 451 mm 4805 mm 1679 mm 3530 mm

PARTS LOADING

MACHINES &

EQUIPMENT

PRODUCTION CAPACITIES AND TECHNOLOGYEngineeringinfrastructure


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Engineering infrastructure

POWER FACILITIES.

№

Энергоресурс

Потребление в 2008 году

Цены энергоресурса

в 2009 году, без НДС

1 Электроэнергия 102139,164 тыс. кВт*ч 1334,80 руб/тыс. кВт*ч

2 Газ природный 85768,80 тыс. м3 2097,26, руб/тыс. м3

3 Вода

1957515 м3 9,72 руб/ м3

4 Кислород 72359 м3 28,34 р/м3

5 Ацетилен 2461,5 кг 144,0 руб/кг

6 Углекислота 86798 кг 7,00 руб/кг

36

Maximum throughput efficiency of IzhAvto engineering/utility systems.

Energy production of IzhAvto can provide utilities enough for annual output of 360,000 vehicles.

Carbonic acid

Power resourceConsumption in 2008

The prices энегоресурса in 2009,

without the VAT

The electric

power

Natural gas

Water

Oxygen

Acetylene

Thousand in kw hour

Thousand in cubic m.

cubic m.

cubic m.

kg.

kg.

Rbl. /Thousand in kw hour

Rbl. /Thousand in cubic m.

Rbl. /cubic m.

Rbl. /cubic m.

Rbl. /kg.

Rbl. /kg.



37/60


37

Heat power plant.

The heat power plant is intended to satisfy IzhAvto needs in steam and heat, as well

as to supply heat to nearby industrial and residential customers. The heat power plant

runs gas-fired boilers, with black oil (mazut) as a backup fuel.

The total installed capacity is 620 Gcal/hour. A project is currently underway to

retrofit the heat power plant for generating its own electric energy as much as 42.0

million kWh per year.

Compressor plant.

The compressor plant and five turbine compressors К250-61-5 (each 250 cu.m/min,

1,600 kW capacity) provide the car production with compressed air of high and low

pressure.

For the purpose of power saving, IzhAvto opted for installing local compressorsinstead of centralized compressed air supply. Today there are 27 operating

compressors which fully cover the demand of shopfloors, involved in production of

modern vehicles.

Electric power supply.

IzhAvto is powered via 10 kW buses of Avtozavod substation of 110/10 kW. The

plant installed power is187.6 МVAElectrical power is distributed throughout the plant by 9 distribution centers which

power 91 step-down transforming substations of 10/0.4 kW.

OAO IzhAvto is the only industrial enterprise in Udmurtia to buy electric energy and

power at wholesale market from 2003. Accordingly, IzhAvto features the cheapest

electric energy among machine building plants of the Udmurt Republic.


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39

Water supply:

Drinking water supply system includes:

- 2-stage (relift) pumping plant with two clean water reservoirs, each 6,000 cu.m,

- clean water reservoir in the engineering building.

The total water supply network is 13,242 m long.Re-circulating water supply is supported by three stations of the following flow

rates:

1st – 2,000 m/hour, 2nd – 2,000 m/hour, 3rd – 1,440 m/hour.

Waste water discharge:

The sewage system consists of:

1) household waste (fecal) ductwork,

2) industrial storm water drainage,3) industrial sewage facilities.

Waste water treatment plants:

The factory waste treatment plants (effluents neutralization station) are housed in

a detached building #49. The design throughput is 800 cu.m per hour.

The paint shop features on-site local treatment facilities. Coolants are cleaned in

a centralized station in building #3.

In 2005-2006 all technological processes were improved to minimize theirenvironmental hazard.

OAO IzhAvto was ranked 4th among the industrial plants of Russia &

Kazakhstan and 1st among the Udmurtian plants in the 2008 estimate carried out

by an independent agency NERA.

PRODUCTION CAPACITIES AND TECHNOLOGYEngineering infrastructure


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g g

40

OAO IzhAvto achievements in the area of energy and environmental safety.



41/60

41

Location of IzhAvto transformer substation

Transformer substation

Distributive point 10 of kw



42/60

42

IzhAvto heat supply network

In 2007 IzhAvto sold heating power to different Izhevsk factories to the total amount of 88,560,000 rubles.

1st industrial line – 1,473 m;

2nd industrial line – 1,690 m;

3rd industrial line (ul.Voroshilova) – 4,820 m;

4th industrial line – 743 m;

5th city line (Starki settlement)) – 7,420 m.



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43

IzhAvto water supply network

Economic-drinking and fire-prevention waterpipe

The direct pipe duct of turnaround water supply

The return pipe duct of turnaround water supply



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44

IzhAvto compressed air network

High pressure air

Low pressure air



45/60

45

IzhAvto process gas network

Carbonic gas

Acetylene

Oxygen

Natural gas

PRODUCTION CAPACITIES AND TECHNOLOGYInformation Technologies (IT)


46/60

There are about

3,000 ports for

terminal network

equipment.

The status of IzhAvto corporate computer network (hardware) is as follows:

data transfer – Ethernet 10/100 Mbit/sec.

network core: topology – „loop‟; data transfer medium – optics, single mode 24-fibre

cable; equipment - 3 (three) Gb exchange switches.

IzhAvto corporate network capacities

20 серверов1,600 PCs 700 printers

Сentralized antivirus program

Software for data

backup

Information Technologies (IT).

46


Information Technologies (IT)


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MES | CCR Axapta

Cognos

PROCESSES:

Production, Logistics

47

IT system general design concept.

“Production” chain, data flow in information system (IS):

BOSS-Referent “Production” chain is basic,

Cognos software is used for budgeting,

BOSS-Referent is used for office administration and document control.

All systems are capable of report generation.

1С platform




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48

MES/CCR functional

Basic MES functions (MES=Manufacturing Executive System):

– vehicle monthly production schedule processing;

– generation of day‟s production orders with specs & colors breakdown;

– real-time changes in body specs;

– body registration at check points throughout the production cycle, i.e. from welding area to finished product warehouse;

– generation of production orders and components supply orders according to SILS (supply in line sequence);

– defect detection, record and tracking;

– generation of various reports, including hourly status by shopfloors /sections /brands /specs and monthly summaries on

production plan fulfillment;

– data exchange with Axapta system

Basic CCR functions (CCR=Consolidated Control Room): – control of conveyors operating conditions;

– display of conveyor equipment operating status;

– display of target and actual production data on shopfloor display boards.

Key objectives of 1C system:

- product specification control, accounting for options and replacements in parts list;

- record of empties and in-process package flow;

- metal working;

- stock taking functionality development (add-in controllers as to stock category, property status); – inventory scheduling and work-in-process inventory;

– inbound logistics (stock monitoring);

– components & materials sales;

– analytical production & logistics WEB-reporting;

– active WEB-reporting;

– generation of company operations factors for 1000 users (max.300 users simultaneously)




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IS briefly

Central base

Capital assets records on capital assets availability, flow and leasing, precious metals in capital assets,

depreciation calculation, tax accounting.

Transport means

monitoring

inspection of consignment notes at the plant exits

(double entry and data comparison by security staff)

Total user number: over 200

Basic functional

materials, finished products, non-material assets,

cash desk, bank, securities (shares, notes, BC),

loans, settlements with accountable persons, capital assets, etc.

Platform / ClientCognos Budgeting system.

Lotus Notes e-mail;

BOSS-Referent – automated system of document flow and records;

Web-technologies system of performance indicators;

proposals on improvements;

Internet portals/

OLAP reports related to human resources; reports related to production planning.

Other futomated system of spare parts management;

maintenance of regulatory & reference documentation pertinent to technical production setup;

tools for defining, analyzing and evaluating organization processes, etc.

Total number of registered users: over 500. 49


PRODUCTION CAPACITIES AND TECHNOLOGYTechnological support and developments


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DESIGN & ENGINEERING.

Vehicle manufacturing supervision; improvements in current processes for better product quality and lower production

costs; investigation of rejects/defects causes; claim settlement; action plan for product quality upgrade; research and

experimental activity to deploy advanced car build processes.

Vehicle

engineering

department

Production

engineering

department

Localization

department

Components analyses to identify parts for localization; search, deployment of system to select and audit potential

local suppliers of parts, monitoring of component production setup activities; supervision of localization process

until the part is validated by the plant.

Incoming inspection at laboratories, including metal products, polymer products, general rubber goods, adhesives,

sealants, artificial films and leathers, oils, antifreezes, brake fluids, coolants, detergents; arrangement of arbitrary

routine lab inspection of materials and parts; instrumentation inspection (calibration) and repair; metrological control

& supervision of control, test & measuring equipment status and application observance of metrology regulation and

rules in relevant departments.

Laboratories

Center

Work study of perspective development & localization projects; investment scheduling; manufacturing documentation

development; planning & coordination between concerned departments and affiliates at all pre-production phases;

generation of pre-production specification and consolidated production specification; production area layout planning

and shopfloor optimal use; management of changes in regulatory and manufacturing documentation.

Multichannel atomic emission

spectrograph

Two-axis measuring

device

Design and engineering support

facilities and systems 50

ПРОИЗВОДСТВЕННЫЕ МОЩНОСТИ И ТЕХНОЛОГИИ

Technological support and developments


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CHIEF

DESIGNER

DEPARTMENT

51

1. Release of technical requirements, technical assignments (RfQ), schedules of activities for vehicle/vehicle units projects;

2. Release of sketches for vehicle mockup manufacturing, orders for prototype manufacturing, technical assignments for testing; monitoring of the

above;

3. Release of basic vehicle bill of material (BOM) and specifications, assembly kit parts list;

4. Release of instruction manuals for vehicles being designed or produced (User‟s manual, Vehicle Log (Service) Book), in conformity with all relevant

certification requirements;

5. Certification activities with respect to vehicles, their units and parts, release of documents required for obtaining motor vehicle type approval;“Reports for official motor vehicle design type approval “ under EC Directives and UN ECE Rules, “Certificate of compliance” for certain features and

“Type Approval for OAO IzhAvto-made motor vehicles”;

6. Carry out certification activities (to obtain Motor Vehicle General Type Approval and relevant certificates), regular checking, acceptance, endurance

tests (including on-road & bench tests) of vehicles, vehicle parts & units, localization parts & units at outside companies, authorized laboratories and

using factory-owned test equipment.

7. Carry out fitting tests for localization parts and units.

8. Carry out attestation (calibration) of test facilities owned by the Design Department.

9. Monitoring of deadlines under the contracts, release of acceptance certificates and other documents necessary to effect payments for jobs done.

10. Design Department budget planning and monitoring.

11. Parts/units production supervision from design aspect, follow-up of localization parts/units made under the license, product improvements to better

meet market demands, versions optimization, compliance of vehicle design to technical requirements and certification system:

- development of design documentation using dedicated design software;- activities on improving parts & units quality: field supervision;

- technical audit at suppliers of localization parts;

- defect analyses, action plan for defect elimination;

- experimental development;

- production vehicle audit together with quality control department.

12. Obtaining, record and custody of patents.

13. Continuous operation of dedicated design and manufacturing engineering systems (CATIA, SolidWorks, Unigraphics, AutoCAD, Compas, Isem

Surf, Rhinoserous, ADEM, etc.), used by engineering staff within the framework of common information area and corporate computer network,

including electronic document flow of design and engineering documentation.

14. Deployment and supervision of latest special-purpose design & manufacturing engineering systems.

Thermal pressure

chamber

Hydraulic

pulsator

Ergonomics

Prototyping

3D scanning and modeling

Engineering

DEALERS NETWORKDealers network performance


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DEALERS NETWORK OF IZH-VAZ VEHICLES.

11

9

27

25

11

15

7

6

15

15

6

10 52

98 outlets in 59 cities

Northwestern Federal District

Southern Federal District

Central Federal District

Volga Federal District

Ural Federal District

Siberian Federal District

Number of

outlets

Number of

cities

DEALERS NETWORKDealers network performance


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DEALERS NETWORK OF KIA VEHICLES.

21

19

44

40

19

12

8

11

16

21

9

11 53

155 outlets in 76 cities

Northwestern Federal District

Southern Federal District

Central Federal District

Volga Federal District

Ural Federal District

Siberian Federal District

Number of

outlets

Number of

cities

QUALITY SYSTEMQuality system performance


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COMPLIANCE OF QUALITY MANAGEMENT SYSTEM (QMS) WITH INTERNATIONAL STANDARDS.

54

OAO IzhAvto management system was certified from 2003 until 2009 for compliance with GOST R ISO 9001-2001 by certification

body SATR-FOND. In December 2009 the factory was re-certified as to QMS compliance with GOST R ISO 9001-2008 (ISO

9001:2008).

In October 2006 the complete manufacturing chain of Kia Spectra production at IzhAvto was certified for compliance with ISO9001:2000 by transnational certification body Det Norske Veritas (DTV), Norway. Over 2007- 2009 DNV annually carried out regular

audits to confirm the QMS integrity and compliance with the standard. In total there were identified 20 instances of "good practice" (i.e.

complex measures approved at the international level).



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QUALITY MANAGEMENT SYSTEM.

System control

Documentation control

Internal auditing

Analyses from the management side

Preventive and corrective actions

Control and improvement processes

Basic production processes

D e s i g n i n g a n d

d e v e l o p m e n t

Pre-production activities

P r o d u c t i o n

s c h e d u l i n g

P u r c h a s i n g

R e c e i v i n g

i n s p e c t i o n

V e h i c l e

p r o d u c t i o n

p r o c e s s

F i n i s h e d

v e h i c l e s

( c u s t o m e r ‟ s )

a u d i t

P r o d u c t s h i p m e n t

S e r v i c e

M e e t i n g

c u s t o m e r s ‟

d e m a n d s

Product quality control

Inadequate products management

Parts & material handling

Equipment maintenance and repair

Control over facilities for monitoring & measuring

Staff management

Supportive processes

- system, where quality aspect is an integral part of manufacturing process, where defects are prohibited, timely recognized and actions

are taken against their recurrence.

OBJECTIVE: fully meet customer‟s requirements.

55



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PRODUCTION SYSTEM OF BUILT-IN QUALITY.

Definition: methods for building the

quality into the production process in a

way to prohibit defects or earlier identifythem with simultaneous actions against

potential defect recurrence

Objective: fully exclude the risk of defect

at the customer‟s.

Elements of built-in quality:

· quality standards;

· process flow charts;· job element sheets;

· feedback over the process chain.

Identification and arrest of defective products at storages, 100% operator inspection before part fitting, in finished vehicles,

random checks of most frequent problems.

Dedicated “defect tours”.

Operator’s self -control under built-in quality concept.

Process unification.

Continuous improvement.

100% product final inspection at weld shop, paint shop and assembly shop finish lines.

Body-in-white (BIW) and painted body audit.Audit of critical jobs.

Weekly quality-related meetings at the top management level.

System of earlier defect detection (EDD).

Warranty data analyses.

Weekly quality meetings.

RECEIVING

INSPECTION

QUALITY

ASSURANCE IN

PRODUCTION

FIELD WARRANTY

QUALITY

CONTROL56

QUALITY SYSTEMQuality system performance benchmarks


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QUALITY SYSTEM BENCHMARKS.

The application of visual and automatic control systems of defect prevention (Andon, Poka-yoke) significantly improved the product quality

score.

Four benchmarks are used by IzhAvto for product quality

assessment:

16

12,6

2005

год

2006

год

2007

год

2008

год

2009

год

14,014,8

93,1 32,625

20

15

10

5

0

Customer audit KIA Spectra

57

Direct yield – percentage of products accepted by inspector

from the 1st or 2nd time, after minor rectification at the

relevant conveyor line.

First pass yield – percentage of products passed the

inspection post with no remarks.

Defect rate – number of defects per vehicle.

Customer audit – number of defects per finished vehicle.

body

paintwork

plastic

trim

chassis

electric system

water leak

driving

KD

target

QUALITY WELDING KIA Spectra. QUALITY PAINT KIA Spectra. QUALITY ASSEMBLY KIA Spectra.

2005 year

2006 year

2007 year

2008 year

2005 year

2006 year

2007 year

2008 year

2005 year

2006 year

2007 year

2008 year

2005

year2006

year

2007

year

2008

year

2009

year

HUMAN RESOURCES

Staff recruitment and adaptation


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HR MANAGEMENT SYSTEM.

BASIC FUNCTIONS:

1. Search and recruitment of staff

2. Staff appraisal

3. Formation of plant skill pool.

4. Disciplinary matter management:

- investigation of production labor discipline violations,

- action plan to remedy causes of labor discipline offence,

- dismissal at initiative of administration.

5. Record maintenance of employment relationship.6. Formalization of pensions and conversion of employees’ pension rights.

7. IT supervision of HR data and personified records.

PERSONNEL DIVISION

HR DEPARTMENT

1. Identification of training needs, organization of employees training.

2. Development and deployment of actions to adapt new comers.

3. Formulation and deployment of social development plans:

- organization of professional holidays (Days in honor of certain trades), meetings of the plant core team and other corporate events;

- organization of sports events and large-scale activities at the plant;

- system of awards and incentives;

- support to the Veteran Council activities.

4. Operation of factory medical aid station, hostel, library, museum, gym, factory luggage room.

5. Operation of IzhAvto radio centre.6. Cooperation with social insurance fund and medical institutions as to medical care, health improvement and recreation of employees.

1. Development and deployment of progressive systems of employees’ labor management, work measurement, remuneration and motivation.

2. Streamlining of labor processes to improve labor efficiency and workmanship.

3. Labor performance planning and monitoring.

4. Supervision on observance of effective regulatory legal acts on labor organization, rating and remuneration.

5. Work & rest schedule monitoring, planning measures for better labor time utilization.

LABOR ORGANIZATION AND PAYROLL DEPARTMENT

LABOR ORGANIZATION AND PAYROLL DEPARTMENT OBJECTIVES:

1. Employment of competent and qualified staff.

2. Personnel development through continuous and regular training.

3. Organization and rating of labor processes, development and adjustment of labor remuneration system, use of efficient incentives and motivation to improve labor productivity, workmanship and discipline.

4. Personnel social development: - setting-up of favorable social & psychological environment for the factory team, adequate conditions for healthy lifestyle, social guarantees, more thorough & sound use of leisure

time by employees.

58

HUMAN RESOURCESFlexible system of staff recruitment


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SOURCES OF STAFF RECRUITING FOR AVAILABLE VACANCIES.

About 3,000 people

were laid off on

mutual agreement

of the parties within2008-2009.

About 5,000 people

were laid off on

voluntary discharge

(unsolicited

dismissal) within2004-2009.

DATA BASE OF FORMER

IZHAVTO EMPLOYEES

Vocational school

graduates – 6,500

students per year

Vocational technical

colleges – 8,900

students per year

Vocational Higher

educational

institutions – 13,200student per year

GRADUATES OF

VOCATIONAL SCHOOLS,

TECHNICAL COLLEGES,HIGHER EDUCATIONAL

INSTITUTIONS

EMPLOYEES OF OTHER

ORGANIZATIONS UNEMPLOYEED

Employed

population of

Udmurtia – 771,300

people

Unemployed

population of

Udmurtia – 88,100

people

59


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Presentation IzhAvto ENG

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