Nissan Motor plans to spend US$200m on a new assembly plant in St. Petersburg, Russia.
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The announcement was made in Tokyo by the automaker’s president and CEO, Carlos Ghosn, during a press conference for the 2005 fiscal year results.
Production will begin in 2009 pending approval by Russia’s Ministry of Economic Development and Trade.
When fully operational, the plant will employ around 750 people and currently planned capacity is up to 50,000 units per year. The plant will produce a variety of vehicles specifically adapted for the Russian market.
Ford is already well established with a Focus assembly plant in the Leningrad Region and St Petersburg has had the vote from Scania for a bus plant and Toyota, whose plant should start making Camry models in the fourth quarter of 2007.
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By GlobalDataSt Petersburg was also the likely site for a proposed DaimlerChrysler plant that has been put on hold.
“Russia has been a very successful market for Nissan and we see great prospects for the future,” said Ghosn. “Russia is an important part of our global growth strategy. This investment demonstrates our confidence in the high potential of the Russian economy.”
The factors that led to the selection of the St. Petersburg site include an available, high-quality work force, attractive location and infrastructure, a supportive business climate and the commitment from the regional government.
“The continued growth of the Russian market, and Nissan’s presence in that market, was a key factor in deciding to start local production,” said Colin Dodge, senior vice president, manufacturing, purchasing and supply chain management, Nissan Europe.
Established in August 2003, Nissan Motor Rus (NMR) is a Nissan national sales company. Based in Moscow, NMR began commercial operations on 1 January, 2004 and currently employs 100 people. NMR distributes Nissan vehicles and parts across the Russian dealer network, which currently comprises around 30 sales outlets.
In 2003, Nissan sold 9,470 units. Following the establishment of its wholly-owned national sales company, sales grew significantly in 2004 (28,436 units) and continued in 2005 (46,485 units).
Russia will become the first European market to offer the Infiniti luxury brand with a planned launch in autumn 2006.
On Wednesday Nissan announced it would roll out Infiniti across the rest of Europe from 2008.
