To follow the strategy aimed at import substitution and reduce the cost of products KrAZ utilizes new units and parts made by Ukrainian manufacturers. Thus, Test Centre of “AutoKrAZ” started testing of the 14.1609010/-10/-20/-30/-40 flange-mounted power steering system made by domestic producer. This hydraulic component was designed in accordance with specification of Kremenchug Automobile Plant and Poltava Brake Components Plant, long-term strategic partner, mastered its production at the end of 2015.
Today KrAZ vehicles are equipped with similar but more expensive part made by the company from Central Europe. After test cycle to be carried out on new generation vehicles featuring various layouts the automobile plant plans to switch to using domestic products.
It should be noted that a year earlier the company made a similar substitution switching to using 121.1609010/-10 power steering systems made by Poltava plant instead of using more expensive products by European manufacturers. KrAZ saved UAH 1,5m in 2015 due to difference between price of imported unit and price of domestic one given that this unit made by Poltava plant is 2,5 times cheaper than imported one, to say nothing of long and expensive transportation. Moreover, production time shortened from six weeks in European country to two weeks at “PAAZ”, it takes three hours to deliver these units from Poltava plant while it takes seven days and more to deliver these products from Europe. Operation proved that the quality of the product manufactured at Poltava plant is up there with the quality of imported counterpart, moreover, it is more perfect in design and warranty is more accessible.
Mastering production of range of products at the group companies and other Ukrainian plants instead of importing foreign-made products is not only cost efficient and economically feasible for “AutoKrAZ” but it is also a good chance for Ukrainian producers to utilize production capacities and provide jobs to their staff.