• 20-APR-2007

Volvo Trucks to Expand Production With Russian Plant

Volvo is looking to expand its current production units to 10,000 trucks per year with a new facility in Russia. The assembly plant, which will cost a total of SEK 935 million (EUR 101 million), will be located in the city of Kaluga, an estimated 200 kilometers from Moscow. Volvo officials say in addition to having the capacity to produce 10,000 Volvo trucks, the facility will also manufacture 5,000 Renault trucks per year. In the past two years, sales of western trucks in Russian markets have increased by 100 percent annually. Due to this dramatic increase, officials say it was only logical to expand their production facilities. A final agreement between Volvo and the authorities in Kaluga is expected to be signed in the near future and the facility is scheduled to be completed by 2009. Currently, Volvo Trucks has 31 authorized service locations throughout Russia.