Tekhnik Acquires Podshipnik Bearing

Tekhnik (Udmurtiya, Russian Federation) has acquired controlling ownership of Uzbekistan-based bearing manufacturer OAO-Podshipnik Joint Stock Co. Set up as part of the Samara bearing plant reorganization, Podshipnik manufactures VBF (Vologda Bearing Factory) branded bearings. It is the only bearing manufacturer in the Vilgo-Viatka region. Tekhnik acquired 92% of Podshipnik's shares; the remaining 8% represents employee ownership. The buyout is reportedly part of a larger effort to gain a foothold in the region's fast-growing automobile industry. The key Podshipnik customer is UzDaewooAuto, an Uzbek-Korean joint venture involving Korea's Daewoo Motor. The venture's plant in Asaka is the first automobile manufacturing facility in central Asia. It has capacity to produce up to 200,000 Daewoo Nexia, Matiz, Lacetti and Tico models for the local market and regional export; in 2004, production is expected to hit 60,000 units. No financial details of the Podshipnik buyout were released, other than Tekhnik's commitment to invest approximately USD $1.5 million in updated and new equipment during 2004.