Procurement for Russia

Supplier Forum Russia 2017 - Moscow - Mercedes-Benz

A Mercedes-Benz passenger car will roll of the production line in Russia for the first time in 2019. What role do Russian suppliers play here? This was the topic of the Supplier Forum Russia in Moscow.

Red Square, Kremlin, Bolshoi Theater. Moscow brimming with history. The Supplier Forum Russia is focused on the future. Some 250 guests came to the Russian capital on November 10, 2107, invited by Mercedes-Benz Cars, Procurement & Supplier Quality (MP), including suppliers and high-ranking business representatives and politicians from the Moscow region like the Minister for Investment and Innovation, Denis Butsaev. No one had to look too far into the future, because production of the E-Class is starting at the Mercedes-Benz “Moscovia” plant in 2019.

Mercedes-Benz Cars Supplier Forum Russia 2017 in Moscow

In his speech, Ekhard Kaltenbrunner, Director Mercedes-Benz Cars, Procurement & Supplier Quality, explained the sourcing philosophy and outlined the suppliers from Russia already involved in the project. Along with a message: “We’re looking for suppliers here in Russia for our local production.” Joachim Follmann, Head of Strategy Operations, Mercedes-Benz Cars, explained the strategy in the Russian market. Axel Bense, CEO of the production company Mercedes-Benz Manufacturing RUS, gave an update on the progress of the construction work for the new factory.

The groundbreaking ceremony for the new Mercedes-Benz “Moscovia” plant in Russia took place in June 2017. 40 kilometers northwest of Moscow, 85 hectares of land, an area equivalent to 120 soccer fields. The aim here is fully flexible production for the regional market, starting in 2019. With a 1,000-strong workforce. First the E-Class Sedan, followed by the gradual introduction of the GLE, GLC and GLS SUV models. The goal is to build on the leading position in the Russian premium segment.

Mercedes-Benz Cars plant 'Moscovia'
"Moscovia" – the new Mercedes-Benz car plant in Russia.

Four Breakout Sessions were held to give the Supplier Forum Russia participants deeper insights. MP and International Procurement Services (IPS) showed what the company expects from potential suppliers. Mercedes-Benz Operations presented the new plant. The representatives from the Moscow region outlined the grants available for locating suppliers. Klaus Zehender, Member of the Divisional Board of Mercedes-Benz Cars, Procurement & Supplier Quality: “We will produce our best-sellers for the regional market at the new Mercedes-Benz Moscovia plant on a fully flexible basis. To do so, we count on local partners that provide us with top quality and innovations. Thus we are following our general localisation strategy to buy materials, where our production operations are based.”

Lots of information and even more discussions. This will be enlarged upon in the coming weeks, and it will become clear which suppliers from Russia will help ensure the success of the new Mercedes-Benz “Moscovia” plant by bringing their powers of innovation and top quality to the table.