U.S. Automotive Parts and Components Business Development Mission to Russia, 77974-77977 [2011-32130]
Download as PDF
<![CDATA[
77974
Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
Disclosure
Public Comments
We will disclose the calculations
performed within five days of the date
of publication of this notice to parties in
this proceeding in accordance with 19
CFR 351.224(b).
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Import Administration no
later than seven days after the date on
which the final verification report is
issued in this proceeding and rebuttal
briefs, limited to issues raised in case
briefs, may be submitted no later than
five days after the deadline date for case
briefs. See 19 CFR 351.309. A table of
contents, list of authorities used and an
executive summary of issues should
accompany any briefs submitted to the
Department. This summary should be
limited to five pages total, including
footnotes.
In accordance with section 774 of the
Act, we will hold a public hearing, if
requested, to afford interested parties an
opportunity to comment on arguments
raised in case or rebuttal briefs.
Interested parties, who wish to request
a hearing, or to participate if one is
requested, must submit a written
request to the Assistant Secretary for
Import Administration, U.S. Department
of Commerce, filed electronically using
Import Administration’s Antidumping
and Countervailing Duty Centralized
Electronic Service System (‘‘IA
ACCESS’’). An electronically filed
document must be received successfully
in its entirety by the Department’s
electronic records system, IA ACCESS,
by 5 p.m. Eastern Standard Time (ET)
within 30 days after the date of
publication of this notice. See 19 CFR
351.310(c). Requests should contain the
party’s name, address, and telephone
number, the number of participants, and
a list of the issues to be discussed. If a
request for a hearing is made, we will
inform parties of the scheduled date for
the hearing which will be held at the
U.S. Department of Commerce, 14th
Street and Constitution Avenue NW.,
Washington, DC 20230, at a time and
location to be determined. See 19 CFR
351.310. Parties should confirm by
telephone the date, time, and location of
the hearing.
We will make our final determination
no later than 135 days after the date of
publication of this preliminary
determination, pursuant to section
735(a)(2) of the Act.
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act.
Suspension of Liquidation
In accordance with section 733(d) of
the Act, we will instruct CBP to suspend
liquidation of all entries of steel
cylinders from the PRC as described in
the ‘‘Scope of Investigation’’ section,
entered, or withdrawn from warehouse,
for consumption from BTIC, the
Separate-Rate Respondents, and the
PRC-wide entity on or after the date of
publication of this notice in the Federal
Register. Additionally, we will instruct
CBP to require an antidumping cash
deposit or the posting of a bond for each
entry equal to the weighted-average
amount by which the NV exceeds U.S.
price, as indicated above.97
We will instruct CBP to require a cash
deposit or the posting of a bond equal
to the weighted-average amount by
which the normal value exceeds U.S.
price, as follows: (1) The rate for the
exporter/producer combinations listed
in the chart above will be the rate we
have determined in this preliminary
determination; (2) for all PRC exporters
of subject merchandise which have not
received their own rate, the cash-deposit
rate will be the PRC-wide rate; and (3)
for all non-PRC exporters of subject
merchandise which have not received
their own rate, the cash-deposit rate will
be the rate applicable to the PRC
exporter/producer combination that
supplied that non-PRC exporter. These
suspension of liquidation instructions
will remain in effect until further notice.
mstockstill on DSK4VPTVN1PROD with NOTICES
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, we will notify the ITC of our
preliminary affirmative determination of
sales at less than fair value. Section
735(b)(2) of the Act requires the ITC to
make its final determination as to
whether the domestic industry in the
United States is materially injured, or
threatened with material injury, by
reason of imports of steel cylinders, or
sales (or the likelihood of sales) for
importation, of the steel cylinders
within 45 days of our final
determination.
97 See, e.g., Notice of Final Determination of Sales
at Less Than Fair Value: Carbazole Violet Pigment
23 From India, 69 FR 67306, 67307 (November 17,
2007).
VerDate Mar<15>2010
19:28 Dec 14, 2011
Jkt 226001
DEPARTMENT OF COMMERCE
Dated: December 7, 2011.
Christian Marsh,
Acting Assistant Secretary for Import
Administration.
[FR Doc. 2011–32195 Filed 12–14–11; 8:45 am]
International Trade Administration
U.S. Automotive Parts and
Components Business Development
Mission to Russia
International Trade
Administration, Department of
Commerce.
AGENCY:
ACTION:
Notice.
Mission Description
The U.S. Department of Commerce,
International Trade Administration,
U.S. and Foreign Commercial Service
(CS), is organizing an Automotive Parts
and Components Business Development
Mission to Russia on April 23–28, 2012.
Led by a senior Department of
Commerce official, this mission is
designed to provide an opportunity to
explore Russia’s rapidly expanding car
and truck assembly market to a diverse
cross section of companies selling goods
and services into the automotive sector,
including but not limited to:
components for vehicle manufacture,
replacement parts, aftermarket products,
repair equipment, capital equipment
used for vehicle manufacture, testing
equipment, and software and
engineering services.
Mission participants will benefit from
expert briefings on the Russian market
as well as on current developments in
Russia’s emerging auto sector. The
mission program will include
opportunities to meet key Russian
Government officials and
decisionmakers, one-on-one meetings
with potential business partners and site
visits to automotive assembly plants and
component manufacturers. The U.S. and
Foreign Commercial Service is targeting
a minimum of 15 and a maximum of 20
U.S. companies.
Commercial Setting
During Soviet times, average citizens
spent years on waiting lists for the 4 or
5 models of available cars, most based
on 1960s technology. Quality control
was minimal.
In 2010, automobile ownership in
Russia—a country of 140 million
consumers—grew to more than 244
vehicles per 1,000 inhabitants, 70%
higher than the 2001 rate of 140 vehicles
per 1,000 inhabitants. This compares to
BILLING CODE 3510–DS–P
PO 00000
Frm 00012
Fmt 4703
Sfmt 4703
E:\FR\FM\15DEN1.SGM
15DEN1
mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
around 850 cars for every 1,000
Americans. Sales of cars and trucks in
Russia are currently growing at an
annual rate of 30 percent.
Approximately 34 million cars are on
Russian roads today, of which 14
million are foreign brands.
While sales of Russian automobiles
declined in 2008, due to the world-wide
financial crisis and recession, car sales
have picked up again as the Russian
economy recovers. In 2010, Russian
customers purchased 1.9 million cars.
This figure includes 646,000 new
Russian cars and 1.25 million foreign
cars, both imported and produced in
Russia. Importers forecast continued
rapid growth of approximately 20
percent in 2011. If these trends
continue, most experts project Russia
will be the largest automotive market in
Europe in the next few years.
Prior to the global financial crisis that
started in 2008, Russia’s economy was
growing at a healthy pace. Annual GDP
growth averaged 7.5 percent from 2001–
2007. In 2008 and 2009, Russia
experienced negative GDP growth.
However, Russia’s economy began to
grow again in late 2010, experiencing
GDP growth of 3.8% in the last two
quarters of 2010. Economists now
forecast Russia’s economy, supported by
higher prices for oil, gas and raw
materials, to continue growing at around
4% annually in the near term.
Russia’s giant auto plants remained
largely unaffected by the economic
turmoil that followed the collapse of the
Soviet Union. During the inflationary
1990s, auto parts became a valuable
barter commodity. As the Russian
market opened to imports, the few
wealthy Russians able to afford
imported vehicles opted for new foreign
cars. At the same time, imported used
cars began to compete with new Russian
cars in the rapidly expanding mass
market. The financial crisis of 1998 and
the significant devaluation of the
Russian ruble made imports more
expensive and thus provided a stimulus
to Russian manufacturers.
Russia’s auto industry has largely
been centered in the city of Togliatti in
the Samara region and in Nizhny
Novgorod. The giant AvtoVaz factory,
one of Russia’s largest industrial
enterprises, is located in the city of
Togliatti. The plant reported output of
517,000 cars in 2010 and accounted for
30 percent of Russia’s automotive
output. AvtoVaz produces cars in the
$5,000 to $15,000 range for the Russian
market and exports about 8% of its
output to the former Soviet republics.
The GAZ plant in Nizhny Novgorod
has ceased production of passenger
vehicles. The last Volga Sibir—a
VerDate Mar<15>2010
16:49 Dec 14, 2011
Jkt 226001
modified version of the Chrysler Sebring
sedan—rolled off the assembly line
October 31, 2010. The factory continues
to produce the popular Gazelle line of
light trucks and minivans, and the
company also produces general purpose
heavy trucks that are used in a variety
of industries.
UAZ in Ulyanovsk produces light
utility and military vehicles. The UAZ–
469 all terrain vehicle was the standard
off-road vehicle for the Soviet armed
forces and was used by armies around
the world due to its reputation for
reliability and ease of maintenance.
Today, the company’s UAZ Hunter is a
successor vehicle to the 469 made for
the consumer market, and it has also
introduced the UAZ Patriot—a mid-size
SUV with an economical price. UAZ
produced 49,000 vehicles in 2010.
Russia’s largest automotive
corporation KAMAZ is ranked 13th
among the world’s heavy truck
producers and is number 8 in the
production of diesel engines. Its trucks
have won the Dakar Rally a record 10
times. It is the largest manufacturer of
heavy trucks in the former Soviet
Union. Its massive factory in
Naberezhny Chelny, Tatarstan has
production capacity for over 100,000
vehicles. The company’s diesel engine
plants include wholly-owned subsidiary
Kamaz-Diesel and Cummins-Kama, a
joint venture with the U.S. company
Cummins.
Foreign automakers have taken notice
of the Russian automotive market’s
potential for significant growth and are
building assembly plants to meet the
increasing Russian demand for high
quality automobiles. General Motors has
a $335 million plant in Togliatti, a joint
venture with Russian auto giant
AvtoVaz that produces an inexpensive
SUV, under the Chevrolet—Niva brand,
which is based on an AvtoVaz-designed
platform. The GM/AvtoVaz joint
venture manufactures 60,000 vehicles
for the Russian market and for export
through AvtoVaz’s dealerships
throughout the former Soviet Union and
GM’s distribution network. GM’s newest
plant was built in St. Petersburg in
2008. It has a production capacity of
50,000 cars, and currently produces four
models: two SUVs—Chevrolet Captiva
and Opel Antara—and two sedans—
Chevrolet Cruze and Opel Astra.
Both GM and AvtoVaz have an
interest in working with the more than
200 automotive component
manufacturer suppliers in the Samara
region to improve the quality of their
products and upgrade their technology.
Ford opened its first assembly plant
in Russia in 2002 near St. Petersburg.
The plant has a capacity of 125,000
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
77975
vehicles and currently produces two
models—Ford Focus and Ford Mondeo.
In 2010, the Ford Focus was Russia’s
most popular foreign car, and its 5th top
seller overall. Assembled in Russia from
foreign-made parts and with a sticker
price of $16,000–$25,000, the Russianmade Ford Focus is significantly less
expensive than the price of similar
imports. Consequently, Ford is working
with local components manufacturers to
develop their capabilities as suppliers,
and is encouraging Western
manufacturers to consider establishing
facilities in Russia. In February 2011,
Ford announced its intention to form a
joint venture with Sollers OJSC to
produce cars in Russia under the Ford
nameplate. This proposed joint venture
will produce cars under the Ford brand
at the Ford plant outside St. Petersburg
and at Sollers’s plant in Tartarstan. It
will also produce engines; operate a
stamping facility that will provide a
higher level of local parts content for
Ford vehicles built in Russia; and
establish research and development
activities.
In addition to Ford and GM, major
international OEMs have made
significant investments in St. Petersburg
and surrounding Leningrad Oblast,
turning it into a new automotive
assembly ‘‘cluster.’’ Nissan, Toyota and
Hyundai opened new plants in St.
Petersburg or in Leningrad oblast
between 2007 and 2009. Toyota’s
facility, located near the GM plant in
Shushary, was built in 2009, and has a
capacity of 50,000 vehicles. It currently
produces the Toyota Camry. Nissan
opened its 50,000 vehicle plant to
produce the Nissan X-Trail and the
Nissan Teanna in St. Petersburg’s
Kamenka district in 2009. Hyundai is
the latest arrival. It opened its 100,000
car plant also in the Kamenka district in
2010 to produce the Solaris, a subcompact car designed specifically for
the Russian market. Significantly,
Hyundai has also brought with it a
number of Korean automotive suppliers
that will help it to meet Russian
government demands for increased
localization of foreign automotive
assembly in Russia.
Investments by European
manufacturers have also created another
automotive ‘‘cluster’’ in Kaluga.
Volkswagen Group has invested more
than 500 million Euro in its 150,000
capacity plant where it produces the
Volkswagen Passat and the Skoda
Octavia. Volvo’s truck assembly plant,
which opened in 2009, has an annual
capacity of 10,000 Volvo and 5,000
Renault trucks. PSA Peugeot Citroen
opened its plant in March 2010 to build
Peugeot 308s for the Russian market, as
E:\FR\FM\15DEN1.SGM
15DEN1
mstockstill on DSK4VPTVN1PROD with NOTICES
77976
Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
well as Citroen and Mitsubishi brand
cars.
There are also a number of smaller
international automotive ventures in
Russia. In the Russian ‘‘exclave’’ of
Kaliningrad, the Autotor joint venture
with KIA and BMW assembled 170,211
cars in 2010 and plans to assemble
240,000 in 2011. In Taganrog, Tagas is
assembling several Hyundai models:
The Accent and Sonata sedans, the
Porter LCV and Aerotown and County
buses. Tagas produced 31,000 vehicles
in 2010, and plans to double production
to 60,000 in 2011. Scania’s plant in St.
Petersburg has capacity to produce
1,500 trucks per year.
Western tire makers are also operating
in Russia. The French Michelin built a
plant outside Moscow in 2004 that
makes 2 million tires per year. Finland’s
Nokian Tyres is expanding its plant near
St. Petersburg to produce 10 million
tires per year by the end of 2011.
Goodyear has a joint venture with a
Russian tire maker in Yaroslavl and has
explored building a tire factory there.
Michelin’s plant was built with the help
of a $20 million investment from the
EBRD, which has targeted the Russian
automotive sector for strategic
investment.
Bosch, with its Russian joint venture
partner, supplies 82 percent of the
Russian ignition plug market from its 30
million—unit capacity plant in Saratov.
Lear manufactures car seats in a facility
within GAZ’s plant in Nizhny
Novgorod. Outside of that town,
Ingersoll Rand makes power tools and
steering columns. Delphi produces wire
harnesses at its plant in Samara, while
in St. Petersburg Johnson Controls and
Tenneco make, respectively, car seats
and exhaust systems.
Given the current dynamics in this
automotive sector, the U.S. Commercial
Service strongly believes that significant
opportunities for growth and expansion
exist in Russia for U.S. manufacturers of
automotive parts and components.
Russians are prepared to pay for quality
vehicles, while at the same time the
Russian automotive manufacturers and
the Russian government are seeking
technology and business partnerships to
meet this demand.
Industry experts have indicated that
there are especially good prospects for
manufacturers of engines, electric and
electronic components, trim, exhaust
systems, plastic parts and
instrumentation. In addition, there are
increasing opportunities for export of air
conditioners, ABSs, airbags, power
steering and automatic transmissions,
that are currently not manufactured in
Russia.
VerDate Mar<15>2010
16:49 Dec 14, 2011
Jkt 226001
Mission Goals
The U.S. Automotive Parts and
Components Business Development
Mission to Russia will provide U.S.
original equipment parts manufacturers
a timely, efficient and cost effective
opportunity to explore current business
prospects in Russia.
Mission Scenario
The Mission program will begin in
Moscow and include site visits and
consultations in St. Petersburg and in
Samara and Togliatti. In addition to
market briefings by industry experts,
mission members will have the
opportunity to meet key Russian
Government officials responsible for
formulating and implementing the
government’s automotive industry
policies and plans and for one-on-one
meetings with potential business
partners that match their market
interests.
Timetable
Sunday, April 22, Moscow, Russia
Arrive Moscow, evening: Welcome
event.
Monday, April 23, Moscow, Russia
Briefings/Presentations/Meetings with
key Russian and American
automotive industry executives,
consultants and officials followed by
an evening VIP Reception.
Tuesday, April 24, Moscow, Russia
Presentations by major automotive
companies, followed by one-on-one
meetings. Depart for St. Petersburg.
Wednesday, April 25, St. Petersburg,
Russia Meetings with auto industry
representatives and regional
government officials and plant visits
in St. Petersburg and Leningrad
Oblast. Evening networking event
and/or cultural program.
Thursday, April 26, Samara, Russia
Depart for Samara/Togliatti. Meetings
with auto industry representatives
and regional government officials and
plant visits in Samara followed by
evening networking event.
Friday, April 27, Moscow, Russia
Meetings with auto industry
representatives and regional
government officials and plant visits
in Togliatti, followed by return to
Moscow.
Saturday, April 28 Depart Moscow for
U.S.
Participation Requirements
All parties interested in participating
in this mission to Russia must complete
and timely submit an application
package for consideration by the
Department of Commerce. All
applicants will be evaluated on their
ability to meet certain conditions and
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
best satisfy the selection criteria as
outlined below. A minimum of 15
companies and a maximum of 20
companies will be selected to
participate in the mission from the
applicant pool.
Fees and Expenses
After a company has been selected to
participate in the mission, a
participation fee paid to the U.S.
Department of Commerce is required.
The participation fee for one company
representative will be $4,952 for small
or medium-sized enterprises (SME) 1
and $5,701 for large companies, which
will cover one representative.2 The fee
for each additional firm representative
(large firm or SME) is $1,220. The
participation fee covers all in-country
travel—airport transfers and bus
transportation to/from group meetings
and site visits, train fare from Moscow
to St. Petersburg, airfare from St.
Petersburg to Samara and from Samara
back to Moscow, as well as one-on-one
meetings with potential Russian
business partners. The Commercial
Service will assist in booking hotels at
favorable rates, but lodging costs, meals
and incidental expenses will be the
responsibility of each mission
participant.
Conditions for Participation
An applicant must submit a
completed and signed mission
Application and a completed Market
Interest Questionnaire, which must
include adequate information on the
company’s products and/or services,
primary market objectives, and goals for
participation. If the Department of
Commerce receives an incomplete
application, the Department may reject
the application, request additional
information, or take the lack of
information into account when
evaluating the applications.
Each applicant must also certify that
the products and services to be
promoted through the mission are either
produced in the United States or
marketed under the name of a U.S. firm
and have at least 51 percent U.S.
content of the value of the finished
product or service.
Selection Criteria for Participation
Selection will be based on the
following criteria:
1 An SME is defined as a firm with 500 or fewer
employees or that otherwise qualifies as a small
business under SBA regulations.
2 Parent companies, affiliates, and subsidiaries
will be considered when determining business size.
The dual pricing reflects the Commercial Service’s
user fee schedule that became effective May 1,
2008.
E:\FR\FM\15DEN1.SGM
15DEN1
Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
• Suitability of the company’s
products or services to the market;
• Applicant’s potential for business
in Russia and in the region, including
likelihood of exports resulting from the
mission; or investments that will lead to
exports.
• Consistency of the applicant’s goals
and objectives with the stated scope of
the mission.
Referrals from political organizations
and any documents containing
references to partisan political activities
(including political contributions) will
be removed from an applicant’s
submission and will not be considered
during the selection process.
mstockstill on DSK4VPTVN1PROD with NOTICES
Timeframe for Recruitment and
Applications
Mission recruitment will be
conducted in an open and public
manner, including publication in the
Federal Register, posting on the
Commerce Department trade mission
calendar (https://www.trade.gov/trademissions) and other internet Web sites,
press releases to general and trade
media, email, direct mail, broadcast fax,
notices by industry trade associations
and other multiplier groups, and
publicity at industry meetings,
symposia, conferences, and trade shows.
CS St. Petersburg will conduct a
webinar on automotive opportunities in
the Russian market in November 2011;
the mission will be promoted during the
webinar as well.
Recruitment for the mission will
begin immediately and will close on
January 6, 2012. The U.S. Department of
Commerce will review all applications
immediately after the deadline. We will
inform applicants of selection decisions
as soon as possible. Applications
received after the deadline will be
considered only if space and scheduling
constraints permit.
CS is amending this notice to allow
for vetting and selection decisions on a
rolling basis beginning November 15,
2011, until the maximum of 20
participants is selected. Although
applications will be accepted through
January 6, 2012 (and after that date if
space remains and scheduling
constraints permit), interested U.S.
firms and trade organizations which
have not already submitted an
application are encouraged to do so as
soon as possible. We will inform
applicants of selection decisions as soon
as possible after they are internally
reviewed. Applications received after
January 6, 2012 will be considered only
if space and scheduling contracts
permit.
VerDate Mar<15>2010
16:49 Dec 14, 2011
Jkt 226001
CS is amending this notice to extend
the date applications will be accepted to
January 20, 2012.
Contacts
Eduard Roytberg, Senior International
Trade Specialist, CS Ontario, CA, Tel:
1 (909) 466–4138, Fax: 1 (909) 466–
4140, Eduard.Roytberg@trade.gov.
Alexander Kansky, Commercial
Specialist, CS St. Petersburg, Tel: 7
(812) 331–2881, Fax: 7 (812) 331–
2861, Alexander.Kansky@trade.gov.
Vladislav Borodulin, Commercial
Specialist, Tel: 7 (495) 728–5235, Fax:
7 (495) 728–5585,
Vladislav.Borodulin@trade.gov.
Kenneth C. Duckworth, Principal
Commercial Officer, CS St.
Petersburg, Tel: 7 (812) 326–2560, Tel:
7 (812) 326–2561,
Kenneth.Duckworth@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2011–32130 Filed 12–14–11; 8:45 am]
BILLING CODE 3510–FP–P
77977
www.export.gov/reee/re4i), and it
supports ITA’s mission of assisting U.S.
businesses in entering or expanding in
international markets, and enhancing
U.S. exports. Saudi Arabia was selected
as a Next Tier market for the NEI
because it is the largest economy in the
Middle East and is a political and
economic leader in the region.
The mission will help participating
firms gain market insight, make industry
contacts, solidify business strategies,
and identify or advance specific projects
with the goal of increasing U.S. exports
to Saudi Arabia. The schedule will
include one-on-one business
appointments with pre-screened
potential buyers, agents, distributors
and joint venture partners; meetings
with national and regional government
officials; and networking events.
Participating in an official U.S.
Government delegation, rather than
traveling to Saudi Arabia individually,
enhances each company’s ability to
secure desired meetings.
Commercial Setting
DEPARTMENT OF COMMERCE
International Trade Administration
U.S. Clean Energy and Energy
Efficiency Trade Mission to Saudi
Arabia Riyadh and Dhahran, Saudi
Arabia April 14–18, 2012
International Trade
Administration, Department of
Commerce.
ACTION: Notice.
AGENCY:
Mission Description
The United States Department of
Commerce (DOC) International Trade
Administration’s (ITA) U.S. and Foreign
Commercial Service (CS) and
Manufacturing and Services (MAS)
units are organizing an Executive-Led
Clean Energy and Energy Efficiency
Trade Mission to Saudi Arabia from
April 14–18, 2012.
Saudi Arabia offers abundant
opportunities to U.S. companies that
can contribute to its ambitious plans to
improve energy efficiency and reduce
reliance on hydrocarbons for power
generation. The trade mission will target
products, technologies and services in
the clean energy sector, with an
emphasis on solar power; electricity
transmission and smart grid; and green
building in residential, commercial and
industrial settings. This mission will
contribute to the National Export
Initiative (NEI, www.export.gov/nei) and
the Renewable Energy and Energy
Efficiency Export Initiative (RE4I,
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
Saudi Arabia has identified an urgent
need to reduce its reliance on
petroleum-generated power; as a result
it is both developing alternative energy
sources, principally nuclear and solar
power, and promoting more efficient
generation and use of energy. While
Saudi Arabia possesses one-fifth of
global oil reserves, it meets almost 60%
of its domestic power needs from
petroleum. The growth of domestic
electricity demand—and thus domestic
petroleum consumption—is cutting
deeply into exports. Domestic
consumption is growing at an estimated
8–9% annually, and is projected to
almost triple in the next two decades,
from 3.4 million barrels per day oil
equivalent in 2009, to 8.3 million
barrels per day in 2028. Peak power
demand is expected to increase from 43
gigawatts in the summer of 2010 to more
than 120 gigawatts by 2030. Oil used
domestically is heavily subsidized by
the Government resulting in not only
reduced export income, but enormous
opportunity costs as there is less
feedstock for development of
downstream petrochemical industries
and the jobs that go with them. Saudi
Arabia hopes to reduce by half the crude
and natural gas it burns now to generate
electricity, in part by developing solar
power generation capacity, an area
where it has clear climatological
advantages. As Saudi Arabia expands its
energy supply and integrates renewable
energy, further investment will be
required in grid modernization and
smart grid technologies that enable
E:\FR\FM\15DEN1.SGM
15DEN1
]]>Agencies
[Federal Register Volume 76, Number 241 (Thursday, December 15, 2011)]
[Notices]
[Pages 77974-77977]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32130]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
U.S. Automotive Parts and Components Business Development Mission
to Russia
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
-----------------------------------------------------------------------
Mission Description
The U.S. Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS), is organizing
an Automotive Parts and Components Business Development Mission to
Russia on April 23-28, 2012. Led by a senior Department of Commerce
official, this mission is designed to provide an opportunity to explore
Russia's rapidly expanding car and truck assembly market to a diverse
cross section of companies selling goods and services into the
automotive sector, including but not limited to: components for vehicle
manufacture, replacement parts, aftermarket products, repair equipment,
capital equipment used for vehicle manufacture, testing equipment, and
software and engineering services.
Mission participants will benefit from expert briefings on the
Russian market as well as on current developments in Russia's emerging
auto sector. The mission program will include opportunities to meet key
Russian Government officials and decisionmakers, one-on-one meetings
with potential business partners and site visits to automotive assembly
plants and component manufacturers. The U.S. and Foreign Commercial
Service is targeting a minimum of 15 and a maximum of 20 U.S.
companies.
Commercial Setting
During Soviet times, average citizens spent years on waiting lists
for the 4 or 5 models of available cars, most based on 1960s
technology. Quality control was minimal.
In 2010, automobile ownership in Russia--a country of 140 million
consumers--grew to more than 244 vehicles per 1,000 inhabitants, 70%
higher than the 2001 rate of 140 vehicles per 1,000 inhabitants. This
compares to
[[Page 77975]]
around 850 cars for every 1,000 Americans. Sales of cars and trucks in
Russia are currently growing at an annual rate of 30 percent.
Approximately 34 million cars are on Russian roads today, of which 14
million are foreign brands.
While sales of Russian automobiles declined in 2008, due to the
world-wide financial crisis and recession, car sales have picked up
again as the Russian economy recovers. In 2010, Russian customers
purchased 1.9 million cars. This figure includes 646,000 new Russian
cars and 1.25 million foreign cars, both imported and produced in
Russia. Importers forecast continued rapid growth of approximately 20
percent in 2011. If these trends continue, most experts project Russia
will be the largest automotive market in Europe in the next few years.
Prior to the global financial crisis that started in 2008, Russia's
economy was growing at a healthy pace. Annual GDP growth averaged 7.5
percent from 2001-2007. In 2008 and 2009, Russia experienced negative
GDP growth. However, Russia's economy began to grow again in late 2010,
experiencing GDP growth of 3.8% in the last two quarters of 2010.
Economists now forecast Russia's economy, supported by higher prices
for oil, gas and raw materials, to continue growing at around 4%
annually in the near term.
Russia's giant auto plants remained largely unaffected by the
economic turmoil that followed the collapse of the Soviet Union. During
the inflationary 1990s, auto parts became a valuable barter commodity.
As the Russian market opened to imports, the few wealthy Russians able
to afford imported vehicles opted for new foreign cars. At the same
time, imported used cars began to compete with new Russian cars in the
rapidly expanding mass market. The financial crisis of 1998 and the
significant devaluation of the Russian ruble made imports more
expensive and thus provided a stimulus to Russian manufacturers.
Russia's auto industry has largely been centered in the city of
Togliatti in the Samara region and in Nizhny Novgorod. The giant
AvtoVaz factory, one of Russia's largest industrial enterprises, is
located in the city of Togliatti. The plant reported output of 517,000
cars in 2010 and accounted for 30 percent of Russia's automotive
output. AvtoVaz produces cars in the $5,000 to $15,000 range for the
Russian market and exports about 8% of its output to the former Soviet
republics.
The GAZ plant in Nizhny Novgorod has ceased production of passenger
vehicles. The last Volga Sibir--a modified version of the Chrysler
Sebring sedan--rolled off the assembly line October 31, 2010. The
factory continues to produce the popular Gazelle line of light trucks
and minivans, and the company also produces general purpose heavy
trucks that are used in a variety of industries.
UAZ in Ulyanovsk produces light utility and military vehicles. The
UAZ-469 all terrain vehicle was the standard off-road vehicle for the
Soviet armed forces and was used by armies around the world due to its
reputation for reliability and ease of maintenance. Today, the
company's UAZ Hunter is a successor vehicle to the 469 made for the
consumer market, and it has also introduced the UAZ Patriot--a mid-size
SUV with an economical price. UAZ produced 49,000 vehicles in 2010.
Russia's largest automotive corporation KAMAZ is ranked 13th among
the world's heavy truck producers and is number 8 in the production of
diesel engines. Its trucks have won the Dakar Rally a record 10 times.
It is the largest manufacturer of heavy trucks in the former Soviet
Union. Its massive factory in Naberezhny Chelny, Tatarstan has
production capacity for over 100,000 vehicles. The company's diesel
engine plants include wholly-owned subsidiary Kamaz-Diesel and Cummins-
Kama, a joint venture with the U.S. company Cummins.
Foreign automakers have taken notice of the Russian automotive
market's potential for significant growth and are building assembly
plants to meet the increasing Russian demand for high quality
automobiles. General Motors has a $335 million plant in Togliatti, a
joint venture with Russian auto giant AvtoVaz that produces an
inexpensive SUV, under the Chevrolet--Niva brand, which is based on an
AvtoVaz-designed platform. The GM/AvtoVaz joint venture manufactures
60,000 vehicles for the Russian market and for export through AvtoVaz's
dealerships throughout the former Soviet Union and GM's distribution
network. GM's newest plant was built in St. Petersburg in 2008. It has
a production capacity of 50,000 cars, and currently produces four
models: two SUVs--Chevrolet Captiva and Opel Antara--and two sedans--
Chevrolet Cruze and Opel Astra.
Both GM and AvtoVaz have an interest in working with the more than
200 automotive component manufacturer suppliers in the Samara region to
improve the quality of their products and upgrade their technology.
Ford opened its first assembly plant in Russia in 2002 near St.
Petersburg. The plant has a capacity of 125,000 vehicles and currently
produces two models--Ford Focus and Ford Mondeo. In 2010, the Ford
Focus was Russia's most popular foreign car, and its 5th top seller
overall. Assembled in Russia from foreign-made parts and with a sticker
price of $16,000-$25,000, the Russian-made Ford Focus is significantly
less expensive than the price of similar imports. Consequently, Ford is
working with local components manufacturers to develop their
capabilities as suppliers, and is encouraging Western manufacturers to
consider establishing facilities in Russia. In February 2011, Ford
announced its intention to form a joint venture with Sollers OJSC to
produce cars in Russia under the Ford nameplate. This proposed joint
venture will produce cars under the Ford brand at the Ford plant
outside St. Petersburg and at Sollers's plant in Tartarstan. It will
also produce engines; operate a stamping facility that will provide a
higher level of local parts content for Ford vehicles built in Russia;
and establish research and development activities.
In addition to Ford and GM, major international OEMs have made
significant investments in St. Petersburg and surrounding Leningrad
Oblast, turning it into a new automotive assembly ``cluster.'' Nissan,
Toyota and Hyundai opened new plants in St. Petersburg or in Leningrad
oblast between 2007 and 2009. Toyota's facility, located near the GM
plant in Shushary, was built in 2009, and has a capacity of 50,000
vehicles. It currently produces the Toyota Camry. Nissan opened its
50,000 vehicle plant to produce the Nissan X-Trail and the Nissan
Teanna in St. Petersburg's Kamenka district in 2009. Hyundai is the
latest arrival. It opened its 100,000 car plant also in the Kamenka
district in 2010 to produce the Solaris, a sub-compact car designed
specifically for the Russian market. Significantly, Hyundai has also
brought with it a number of Korean automotive suppliers that will help
it to meet Russian government demands for increased localization of
foreign automotive assembly in Russia.
Investments by European manufacturers have also created another
automotive ``cluster'' in Kaluga. Volkswagen Group has invested more
than 500 million Euro in its 150,000 capacity plant where it produces
the Volkswagen Passat and the Skoda Octavia. Volvo's truck assembly
plant, which opened in 2009, has an annual capacity of 10,000 Volvo and
5,000 Renault trucks. PSA Peugeot Citroen opened its plant in March
2010 to build Peugeot 308s for the Russian market, as
[[Page 77976]]
well as Citroen and Mitsubishi brand cars.
There are also a number of smaller international automotive
ventures in Russia. In the Russian ``exclave'' of Kaliningrad, the
Autotor joint venture with KIA and BMW assembled 170,211 cars in 2010
and plans to assemble 240,000 in 2011. In Taganrog, Tagas is assembling
several Hyundai models: The Accent and Sonata sedans, the Porter LCV
and Aerotown and County buses. Tagas produced 31,000 vehicles in 2010,
and plans to double production to 60,000 in 2011. Scania's plant in St.
Petersburg has capacity to produce 1,500 trucks per year.
Western tire makers are also operating in Russia. The French
Michelin built a plant outside Moscow in 2004 that makes 2 million
tires per year. Finland's Nokian Tyres is expanding its plant near St.
Petersburg to produce 10 million tires per year by the end of 2011.
Goodyear has a joint venture with a Russian tire maker in Yaroslavl and
has explored building a tire factory there. Michelin's plant was built
with the help of a $20 million investment from the EBRD, which has
targeted the Russian automotive sector for strategic investment.
Bosch, with its Russian joint venture partner, supplies 82 percent
of the Russian ignition plug market from its 30 million--unit capacity
plant in Saratov. Lear manufactures car seats in a facility within
GAZ's plant in Nizhny Novgorod. Outside of that town, Ingersoll Rand
makes power tools and steering columns. Delphi produces wire harnesses
at its plant in Samara, while in St. Petersburg Johnson Controls and
Tenneco make, respectively, car seats and exhaust systems.
Given the current dynamics in this automotive sector, the U.S.
Commercial Service strongly believes that significant opportunities for
growth and expansion exist in Russia for U.S. manufacturers of
automotive parts and components. Russians are prepared to pay for
quality vehicles, while at the same time the Russian automotive
manufacturers and the Russian government are seeking technology and
business partnerships to meet this demand.
Industry experts have indicated that there are especially good
prospects for manufacturers of engines, electric and electronic
components, trim, exhaust systems, plastic parts and instrumentation.
In addition, there are increasing opportunities for export of air
conditioners, ABSs, airbags, power steering and automatic
transmissions, that are currently not manufactured in Russia.
Mission Goals
The U.S. Automotive Parts and Components Business Development
Mission to Russia will provide U.S. original equipment parts
manufacturers a timely, efficient and cost effective opportunity to
explore current business prospects in Russia.
Mission Scenario
The Mission program will begin in Moscow and include site visits
and consultations in St. Petersburg and in Samara and Togliatti. In
addition to market briefings by industry experts, mission members will
have the opportunity to meet key Russian Government officials
responsible for formulating and implementing the government's
automotive industry policies and plans and for one-on-one meetings with
potential business partners that match their market interests.
Timetable
Sunday, April 22, Moscow, Russia Arrive Moscow, evening: Welcome event.
Monday, April 23, Moscow, Russia Briefings/Presentations/Meetings with
key Russian and American automotive industry executives, consultants
and officials followed by an evening VIP Reception.
Tuesday, April 24, Moscow, Russia Presentations by major automotive
companies, followed by one-on-one meetings. Depart for St. Petersburg.
Wednesday, April 25, St. Petersburg, Russia Meetings with auto industry
representatives and regional government officials and plant visits in
St. Petersburg and Leningrad Oblast. Evening networking event and/or
cultural program.
Thursday, April 26, Samara, Russia Depart for Samara/Togliatti.
Meetings with auto industry representatives and regional government
officials and plant visits in Samara followed by evening networking
event.
Friday, April 27, Moscow, Russia Meetings with auto industry
representatives and regional government officials and plant visits in
Togliatti, followed by return to Moscow.
Saturday, April 28 Depart Moscow for U.S.
Participation Requirements
All parties interested in participating in this mission to Russia
must complete and timely submit an application package for
consideration by the Department of Commerce. All applicants will be
evaluated on their ability to meet certain conditions and best satisfy
the selection criteria as outlined below. A minimum of 15 companies and
a maximum of 20 companies will be selected to participate in the
mission from the applicant pool.
Fees and Expenses
After a company has been selected to participate in the mission, a
participation fee paid to the U.S. Department of Commerce is required.
The participation fee for one company representative will be $4,952 for
small or medium-sized enterprises (SME) \1\ and $5,701 for large
companies, which will cover one representative.\2\ The fee for each
additional firm representative (large firm or SME) is $1,220. The
participation fee covers all in-country travel--airport transfers and
bus transportation to/from group meetings and site visits, train fare
from Moscow to St. Petersburg, airfare from St. Petersburg to Samara
and from Samara back to Moscow, as well as one-on-one meetings with
potential Russian business partners. The Commercial Service will assist
in booking hotels at favorable rates, but lodging costs, meals and
incidental expenses will be the responsibility of each mission
participant.
---------------------------------------------------------------------------
\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations.
\2\ Parent companies, affiliates, and subsidiaries will be
considered when determining business size. The dual pricing reflects
the Commercial Service's user fee schedule that became effective May
1, 2008.
---------------------------------------------------------------------------
Conditions for Participation
An applicant must submit a completed and signed mission Application
and a completed Market Interest Questionnaire, which must include
adequate information on the company's products and/or services, primary
market objectives, and goals for participation. If the Department of
Commerce receives an incomplete application, the Department may reject
the application, request additional information, or take the lack of
information into account when evaluating the applications.
Each applicant must also certify that the products and services to
be promoted through the mission are either produced in the United
States or marketed under the name of a U.S. firm and have at least 51
percent U.S. content of the value of the finished product or service.
Selection Criteria for Participation
Selection will be based on the following criteria:
[[Page 77977]]
Suitability of the company's products or services to the
market;
Applicant's potential for business in Russia and in the
region, including likelihood of exports resulting from the mission; or
investments that will lead to exports.
Consistency of the applicant's goals and objectives with
the stated scope of the mission.
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and will
not be considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (https://www.trade.gov/trade-missions)
and other internet Web sites, press releases to general and trade
media, email, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows. CS St. Petersburg
will conduct a webinar on automotive opportunities in the Russian
market in November 2011; the mission will be promoted during the
webinar as well.
Recruitment for the mission will begin immediately and will close
on January 6, 2012. The U.S. Department of Commerce will review all
applications immediately after the deadline. We will inform applicants
of selection decisions as soon as possible. Applications received after
the deadline will be considered only if space and scheduling
constraints permit.
CS is amending this notice to allow for vetting and selection
decisions on a rolling basis beginning November 15, 2011, until the
maximum of 20 participants is selected. Although applications will be
accepted through January 6, 2012 (and after that date if space remains
and scheduling constraints permit), interested U.S. firms and trade
organizations which have not already submitted an application are
encouraged to do so as soon as possible. We will inform applicants of
selection decisions as soon as possible after they are internally
reviewed. Applications received after January 6, 2012 will be
considered only if space and scheduling contracts permit.
CS is amending this notice to extend the date applications will be
accepted to January 20, 2012.
Contacts
Eduard Roytberg, Senior International Trade Specialist, CS Ontario, CA,
Tel: 1 (909) 466-4138, Fax: 1 (909) 466-4140,
Eduard.Roytberg@trade.gov.
Alexander Kansky, Commercial Specialist, CS St. Petersburg, Tel: 7
(812) 331-2881, Fax: 7 (812) 331-2861, Alexander.Kansky@trade.gov.
Vladislav Borodulin, Commercial Specialist, Tel: 7 (495) 728-5235, Fax:
7 (495) 728-5585, Vladislav.Borodulin@trade.gov.
Kenneth C. Duckworth, Principal Commercial Officer, CS St. Petersburg,
Tel: 7 (812) 326-2560, Tel: 7 (812) 326-2561,
Kenneth.Duckworth@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2011-32130 Filed 12-14-11; 8:45 am]
BILLING CODE 3510-FP-P
