Volvo has expanded its truck plant in Kaluga, Russia, to include cab production, The Moscow Times reported.
Volvo Group Russia MD Peter Andersson said, “This is a long-term investment, which we would not have made had we not believed in Russia. We still see great potential in the market here.”
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The company has spent US$112m on the expansion.
Volvo also plans to manufacture gear boxes and axles in Russia. At present, the company produces 15% of its truck components locally. By 2018, it intends to boost this to 45%.
It also plans to export Volvo and Renault branded from Kaluga to Kazakhstan and Belarus.
