The St Petersburg city government is considering allocating another land plot for Suzuki’s future car assembly plant, after weak soil added to construction costs at the originally allocated site.
The city’s committee for investments and strategic projects said that the possibility of providing another land plot for the plant is being considered as a way to minimize the carmaker’s expenditures on the project.
Suzuki initially planned to spend about 3 billion roubles for the construction of the plant. However, the carmaker’s costs could rise, as the company has been forced to allocate additional funds for the excavation of peat discovered at the construction site.
The weak soil has also forced Suzuki to delay opening the plant until 2010. Under initial plans, Suzuki was to launch the plant in July-December.
Suzuki signed an agreement to build the plant in St. Petersburg in June 2007. The plant is expected to annually produce 30,000 cars.