U.S. Automotive Parts and Components Business Development Mission to Russia, 77974-77977 [2011-32130]

Download as PDF 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 (http://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]


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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 (http://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