The Volvo Group says it will invest SEK783m in a new facility for the production of truck cabs at the plant in the Russian city of Kaluga.
The facility, which is expected to become operational in 2014, will manufacture cabs for the Volvo and Renault Trucks brands with a total annual capacity of 15,000 cabs.
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“The investment is a natural step in efforts to further consolidate our strong position in the premium heavy trucks segment in Russia,” says Volvo’s CEO Olof Persson.
The plant in Kaluga, situated about 200 kilometers south of Moscow, was inaugurated in 2009 and currently supplies Russia and surrounding countries with trucks under the Volvo and Renault Trucks brands. The total annual capacity of the facility is 15,000 trucks.
In 2012, the total market for Western premium heavy trucks in Russia alone is expected to amount to 28,000 vehicles, which represents a two-fold increase compared with 2010, Volvo says.
“We have strong confidence in the Russian market and believe that there is immense potential for further growth in the years ahead,” says Olof Persson.
