Russian heavy equipment maker Chetra mulls production in Egypt

MOSCOW. Sept 17 (Interfax) - Chetra, a manufacturer of bulldozers and pipe layers that is part of Russia's Concern Tractor Plants (KTZ), is considering localizing production in the planned Russian Industrial Zone (RIZ) in the Suez Canal Economic Zone, the company's head of exports, Vladimir Vovk told reporters.

This could initially involve semi knocked down assemble in the RIZ, he said.

"We're prepared to consider this option if there is some sort of support - offtake contracts, some kind of guaranteed sales," Vovk said, adding that the signing of such contracts with potential partners is already being discussed.

"There are two segments. This is the private [sector], where Chinese equipment dominates, and state purchases, where there are players such as Petrojet, state construction contractor Arab Contractors and a number of others. We're interested in them in terms of partnership relations," Vovk said.

He said Chetra has been exporting equipment and components to Egypt and providing servicing for a long time. Setting up production in the RIZ would enable the company to expand sales and enter new export markets, including in neighbouring countries, Vovk said.

Issues concerning the development of the RIZ were discussed during a visit to Cairo by a Russian delegation led by Deputy Prime Minister Alexei Overchuk, who said on Monday that the first production facilities in the RIZ are expected to open before 2030.