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L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

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seat-mile costs than A321 <strong>and</strong> 27% to 30% lower charges than 757.<br />

Tu-204 still requires JAA <strong>and</strong> FAA certification before this operating<br />

cost has any relevance to a western carrier. 27<br />

In 2000, a joint Egyptian-Russian company was created to produce<br />

new Russian l<strong>and</strong>-rovers on the basis <strong>of</strong> the technologies <strong>of</strong> the<br />

Ulyanovsk vehicle plant. Its authorized capital is 50 million Egyptian<br />

pounds. Amal Foreign Trade Company <strong>and</strong> Lada's parent company<br />

AvtoVAZ signed a joint venture agreement to assemble Ladas for the<br />

North <strong>Africa</strong>n market in 2000. However, as they did not have their<br />

own factory, space was found at a local Suzuki plant in Cairo to assemble<br />

the 2107 version <strong>of</strong> the Lada Riva. In 2006, production continued<br />

at Suzuki with an additional model, 2110, being produced.<br />

The contract between AvtoVAZ <strong>and</strong> Amal Foreign Trade Co. to<br />

supply VAZ-2107 car parts for assembly in Egypt was signed in<br />

May 2001. It was expected that cars assembled by Lada-Egypt<br />

would be sold not only in Egypt, but in other <strong>Africa</strong>n countries.<br />

Now Lada Egypt Motor Vehicles Industry&Assembly is a rapidly<br />

developing business. The global crisis unexpectedly revived interest<br />

in inexpensive <strong>and</strong> economical cars like Lada the world over.<br />

Later, in 2005, a joint car assembly plant owned by the Volga<br />

Automobile Plant (AvtoVAZ) <strong>and</strong> the Egyptian firm Amal Foreign<br />

Trade Co opened in the 10th <strong>of</strong> Ramadan City. The Lada-Egypt factory<br />

started assembling VAZ-2110 cars from parts supplied by the<br />

Volga Automobile Plant.<br />

In 2009-2010, about 2,000 Russian cars were assembled annually.<br />

The first shipment <strong>of</strong> VAZ-2107 parts was sent from Togliatti<br />

to Egypt. In the future, once VAZ models have been modernized,<br />

the number <strong>of</strong> sets <strong>of</strong> parts to be shipped to Egypt will increase to<br />

5,000 per year.<br />

In 2007, a Lada Servicing Station was launched in Alex<strong>and</strong>ria.<br />

Until then, there was only one Lada service centre in Egypt in Cairo.<br />

However, that usually did not create much <strong>of</strong> a problem with spare<br />

parts <strong>and</strong> servicing, since the local Egyptian Nasr car is, like Lada,<br />

based on the Fiat prototype. Local owners <strong>of</strong>ten had used Nasr service<br />

stations <strong>and</strong> spare parts if necessary. The new business concept<br />

<strong>of</strong> the Russian auto producer envisages more direct services for<br />

168

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