AMSTERDAM -- Bosal, a Dutch supplier of exhaust systems and tubing, is joining forces with Ukrainian automotive group AvtoZAZ.
The companies will establish a joint venture to produce original-equipment and aftermarket exhaust systems.
When the joint venture's production site at the ZAZ complex in Zaporozhe, in southeast Ukraine, is ready in mid-2006, capacity will be 200,000 systems. Half of these will be used for original equipment.
ZAZ built 126,000 cars in 2004 including the Opel Astra classic, Daewoo/Chevrolet Lanos and its own brands, Tavria and Slavuta.
The company also has assembled Mercedes-Benz, Chrysler and Jeep models.
Last June, ZAZ acquired the FSO plant in Warsaw, Poland. The factory has a 300,000-unit capacity.
ZAZ had been seeking suppliers willing to establish parts production in the Ukraine.