Inergy bets on Russian automotive rebound

Automotive fuel systems supplier Inergy Automotive Systems has started production of plastic fuel systems for the Renault/Dacia Logan and Sandero at its new plant in Stavrovo, Russia, about 200 km east of Moscow.

Inergy (Paris, France) is a joint venture of plastics and chemicals supplier Solvay and Plastic Omnium, a globally active plastics processor in the automotive and waste container markets.

Russia overtook Germany in the first half of 2008 as Europe's largest car market, but has since lost its lead in Europe as the recession has hit Russia especially hard. However, notes Inergy, some analysts expect that the Russian automobile industry will recover and could soon be the third largest in the world, trailing only the U.S. and China.

Earlier this summer the company announced it would open a new fuel systems plant in the Beijing region of China, and one in the Chennai region of India. The Beijing factory will serve a production plant operated by Hyundai from July 2010 and the Chennai factory will supply a car plant in the Bangalore region, presumably Toyota.

For Inergy the Russian car market holds plenty of promise as many of the vehicles made there still use steel fuel tanks. Its Russian plant could also eventually be tasked with blowmolding/assembly of fuel tanks for local car assembly operations for GAZ, AvtoVAZ and Nissan. Inergy also has processing facilities in Eastern Europe in Poland, Romania, and Slovakia. Globally the company employs approximately 4000 at 22 processing facilities in 17 countries. —[email protected]