Kirishi Foundry (KLZ)

History

2024: Construction of a brake plant for 10 billion rubles

The Kirishsky Foundry Company (KLZ) will build a plant for the production of automotive components in the Leningrad Region. This project worth 10 billion rubles became known at the end of February 2024.

According to the Novy Prospekt newspaper, at the end of 2023, KLZ bought a land plot in the Kirishsky district of the Leningrad region, on which it is planned to build a production facility. The plant will launch the production of brake discs and brake drums for cars and trucks, as well as high-precision casting for various areas of the national economy. The plant plans to produce 3.3 million units of products per year, which corresponds to 15% of the Russian market for brake discs and drums, the publication says.

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The plant is scheduled to launch at the end of 2025. After the start of its work, KLZ expects to occupy 15% of the Russian market for brake systems for road transport. According to experts interviewed by the publication, the production of auto components is extremely relevant for the Russian market, so the KLZ project is promising.

The cessation of work in Russia of several foreign manufacturers of car kits for the automotive industry led to a shortage of parts and components. The search for new suppliers has yielded certain results, but it has not yet been completed. In this situation, parts of domestic production may be in demand, - said Dmitry Baranov, a leading expert at Finam Management Management.

According to him, the question remains open whether CLZ products will be able to compete with foreign counterparts. The price and terms of warranty service will be important, Baranov believes.

By the end of February 2024, the owners of the eponymous KLZ are Anton Nagorny and Evgeny Malkin, who own 5% of the shares, and another 90% of the company is owned by MED LLC, where Nagorny and Malkin also share equally 10%, and the rest are distributed in different shares between Anna Razvozzhaeva, Savely Letyagin and Tatyana Lebed.^[1]

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