OREANDA-NEWS. RT Invest and KAMAZ Group have signed Memorandum of Cooperation intending to produce and service modern refuse collection vehicles (RCVs). KAMAZ would be the principal RCV’s supplier for the national integrated waste management company being created by RT Invest. Partners have also discussed the creation of a joint venture for the production of RCVs in Russia.

According to Rostec’s CEO Sergey Chemezov, “Production of modern and efficient refuse collection vehicles in Russia would become part of a centralized waste management and processing system. Utilization of state of the art Russian technologies would allow to produce vehicles that satisfy EU ecological standards, have high levels of maneuverability, noise and leakage reduction systems. Such vehicles will allow for operating cost reduction resulting in substitution of imported refuse collection vehicles with those locally produced to the benefit of domestic producers.”

According to the CEO of KAMAZ Group Sergey Kogogin, “Despite significant experience in designing special purpose vehicle for municipal needs, the cooperation with RT Invest provides KAMAZ Group with a significant opportunity to expand into a new segment of RCV construction. The industry badly needs equipment able to process waste to improve ecological standards”.

According to RT Invest CEO Andrey Shipelov, “Refuse collection vehicles are the key component in the waste processing chain. The goal of our partnership with KAMAZ Group is to enable technology transfer as well as develop state of the art Russian technologies in this field. The Russian RCV market today is estimated at around USD  400 mln. We are aiming for a market share of around 40%.”

The Memorandum establishes a new technological standard for the waste management industry applicable to hauling and collection equipment. From now on KAMAZ’s chassis production would be adapted to Russian conditions, making it more efficient in waste loading, unloading and transportation.

RT Invest will provide KAMAZ with a list of technological specifications for the vehicles concerning improvements in chassis construction, engine power capacity and unification of the RCVs range. RT Invest waste management subsidiary would act as an industry expert, while KAMAZ would provide maintenance services for the vehicles and training programs for the staff.

In September 2013 RT Invest and Ulyanovsk Regional Government signed Memorandum of Cooperation with a goal to organize a modern high-technology waste management system in the region with planned investments of over USD 200 mln. It adds extra 800 k residents to the integrated waste management company owned by RT Invest. Earlier RT Invest has acquired 100% of the second largest operator in the Volga region PZKH servicing the city of Kazan, and took control of the AGZHO Group, a N.Novgorod based waste management company. The merger of these companies would allow Rostec to create the largest waste management operator in the Russian market. By the end of 2013 the integrated waste management company should service over 7.5 mln residents or to 5% of the Russian population.