Volvo Group has laid the foundation stone for a new assembly plant in Kaluga, Russia, which will produce trucks for both the Volvo and Renault brands when it opens in early 2009.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The truck maker’s deliveries to Russia have increased considerably in recent years from about 500 units in 2003 to about 2,500 last year. Demand continues to be very strong this year, with 2,600 vehicles already delivered by the end of August, prompting the EUR100m (GBP70m) plant project. Volvo Trucks currently has 35 authorised service locations and 20 sales offices throughout Russia.
Renault Trucks deliveries totalled 533 units in 2006 and 608 had been delivered by the end of August through 19 dealers.
Located approximately 200km (120 miles) south-west of Moscow, the Kaluga plant’s production capacity will be about 10,000 Volvo and 5,000 Renault trucks a year for Russia and CIS countries. The factory is expected to employ about 1,000.
The vehicles to be assembled at the plant include the Volvo FH, FM and FL and FE models, together with the Renault Premium and Kerax.
Volvo Construction Equipment will also have manufacturing space in Kaluga for machine assembly, a limited amount of manufacturing and storage. Production is expected to begin after 2010 and the first products off the line are expected to excavators.
