Until June 2017, the 85-acre site just outside Moscow still lay fallow. Now the start of production next year is tantalizingly close. In the interim: A huge piece of work! Russian suppliers have a stake in the construction. Mercedes Benz will continue to rely on local partners at the Moscovia plant in the future.
“You only build once,” says Olga Samovarova, Buyer for International Procurement Services (IPS) in the Mercedes-Benz production network in Russia. Everything has to be right the first time! In February 2017, she supervised tenders for the new Moscovia site. In the course of this, she also maintained focus on Daimler’s localization strategy: Purchasing locally, where production takes place. Her project included the construction of the plant, the procurement of production facilities – and a tight schedule. Within just three months, she pulled off a precision landing. At the end of May 2017, a Turkish general contractor based in Russia signed the contracts. On 1st June 2017 the ground-breaking ceremony took place and twenty days later the official laying of the foundation stone.
Construction handover is planned for the end of 2018 and it is expected that the E-Class will see production in the year 2019, followed later by the SUVs GLE, GLC and GLS. The Moscovia plant will be fully flexible to produce various models on one line. On facilities that Olga Samovarova has procured together with the Global Commodity Management team from Germany. The production buildings have been thus equipped since January 2018.
Russian suppliers for cars with the star
At the Supplier Forum in November 2017, potential suppliers, along with Russian representatives from the worlds of politics and business, were able to ready themselves for the local production program. With an eye towards the construction progress, Axel Bense, CEO of the production company Mercedes-Benz Manufacturing RUS (MBMR), affirmed the localization strategy: “We continue to work together with our Russian partners.” For this, the municipal, local and federal authorities are actively developing the local infrastructure.
Local partners welcome!
Car production at the Moscovia plant starts in the main with imported parts. The goal: Step by step, Russian partners will take over further assignments – from the delivery of materials and components to assembly work. The Supplier Forum Russia in November 2017 in Moscow offered potential suppliers initial insights. Since then, Mercedes-Benz Cars has been in contact with more than 60 Russian suppliers, and the first localization projects are imminent. The prerequisite for this is Mercedes-Benz top quality with the same worldwide standard.
What do suppliers need to know in order to take part in tenders? IPS buyer Olga Samovarova outlines the key points. Potential partners must be located in Russia, have an employee profile and product portfolio as well as a sound financial structure. In order to meet Mercedes-Benz top quality, qualification – including relevant certificates – is necessary. Another must is the transparency in terms of processes, prices and sustainability. Integrity and compliance are further key requisites for joint business success. And finally, reliable operational readiness with regard to deadlines, quality and prices must be visible and tangible.