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. Last Updated: 07/27/2016

Renault Plans to Increase Local Suppliers

Renault plans to expand its pool of Russia-based suppliers to around 30 by 2009 to expand on its source of locally produced components, the company said Wednesday.

The French carmaker plans to expand from the current base of 18 suppliers so as to provide 50 percent of the parts for the budget Logan model, made at the carmaker's Avtoframos plant in Moscow, said Antoine Aoun, purchasing director for Renault in Russia.

"We are continuing talks with the suppliers," Aoun said.

Locally made car components currently account for 30 percent of the parts used in the Logan, he said, adding that the firm plans to increase this figure to 40 percent next year.

Analysts say the paucity of local suppliers for quality car parts is a serious hurdle for carmakers working in Russia.

"Choosing suppliers is a hard thing to do, but we are doing it nevertheless, as we intend to work here for a long time," said Jean-Michel Jalinier, director for Renault in Russia.

Locally produced parts now include windshields, plastic fittings and other simple components. Jalinier said Renault would consider building more sophisticated parts in 2009.

Renault is buying parts from both Western and domestic suppliers based in Russia, including Zil, Severstal, Amtel among others. Four foreign suppliers -- including Inergy, Bosal and BASF -- will start production in Russia within the next two years to make components for Renault and other carmakers, Aoun said.