Magna International will spend US$108.7m on a Saint Petersburg factory by 2011 despite a downturn in the Russian auto industry.
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Construction of the Magna plant for pressed car parts will begin in 2009 and is to be completed by the end of 2010, the city administration said in a statement cited by Reuters.
Magna co-chief executive Siegfried Wolf said earlier at the signed a memorandum of understanding with city officials: “We believe in the Russian market and are sticking to our development strategy in Russia.”
The company also plans to build a plastics parts factory the city said.
Magna has deals with Hyundai and Ford to supply their Saint Petersburg plants with parts, and is in talks with other automotive giants who own factories in the area.
Magna has already rented a facility to make plastic parts for Ford in the first quarter of 2009, the city said.
