RUSSIA: Toyota to expand local production capability
Toyota is expanding the role of its Camry plant in St Petersburg by adding stamping and resin moulding processes to the current CKD kit assembly welding, painting and assembly capabilities.
As reported by just-auto last June, Russia has imposed stringent parameters on foreign companies such as a threshold of 300,000 units in four years and the localisation of engines, gearboxes and stampings to achieve 60% local content.
Russia introduced the requirements through an automotive decree issued in March led by prime minister Vladimir Putin's wish to drive increased manufacturing in the country.
The automaker said it was investing around RUB7bn (US23m) at the plant, operated by Toyota Motor Manufacturing Russia.
The investment will help promote localised production, the company said, and will come on stream from 2014. The plant is currently producing around 20,000 cars a year, well short of its 50,000 capacity.