SNECI has been nominated by a European OEM for a Production Transfer mission

SNECI has been nominated by a European OEM to find a Russian supplier of structural parts, and production transfer of the related assembly line from Western Europe to Russia.

«The stakes of this localization in Russia are important; indeed the 166 decree orders foreign OEM selling cars in Russia to a minimum localization rate to benefit from lowered custom duties. Thus, this decree pushes manufacturers to find local suppliers capable to produce parts with more and more added-value», according to Stanislas Bailly, SNECI Group’s Operations Director. «The OEMs concede that the Russian market reached its lowest point, and those who maintained their activities in Russia hope being able to take advantage of its recovery. It won’t be possible without a high localization rate».

This project on production transfer is especially complex as it has to be carried out in very short time.  «Our good knowledge of the local supplier network and our know-how in production transfers are real assets for our customers», adds Mr. Bailly. «The current trend of rationalization of production Western Europe as well as the launching of industrial activities on new markets (e.g. Russia, Iran) makes us believe that OEMs will ask more and more for this expertise in the following years. As they prefer to focus on their core business, they naturally ask SNECI to manage such complex projects, which require a good knowledge of the local supplier network, a culture of accompanying suppliers and a strong knowledge of OEM’s processes», concludes Stanislas Bailly.