General Motors will start building its over $US100m car assembly plant in Russia’s St. Petersburg on June 13, Vladimir Blank, chairman of the city’s committee for economic development, industrial policy and trade has said.
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Initially, the planned output at the assembly plant will be at over 25,000 cars per year, Blank said, according to Dow Jones/Prime-Tass.
GM is expected to reach the planned output within three years after signing the agreement on the assembly plant with Russia’s Economic Development and Trade Ministry, which took place on May 29, Blank said.
It was not clear when construction would be completed.
The news agency noted that Blank said, being a strategic investor, GM will be exempt from property taxes for five yeas, while the profit tax for the company will be decreased 4%. The agreement signed by GM and Economic Development and Trade Ministry also eliminates or reduces import duties on components.
GM is expected to assemble Chevrolet-DAT cars at the plant on a 94-hectare site in an industrial area called Shushary, the report said.
Toyota’s new assembly plant, already under construction, will be a near-neighbour there.
Nissan Motor announced in April its plans to build a $200 million assembly plant in St. Petersburg. The sales of the three plants are projected at over 40 billion rubles in 2009, Blank said, according to Dow Jones.
