An
initial order for 100 vehicles from a Moscow based company in the construction
sector means Volvo Truck will soon be starting production at its own assembly
plant in Russia.

This is the successful outcome of a joint industrial venture with the Russian
company JSFC Sistema.

The new production facility will be in Zelenograd, a rapidly expanding industrial
area just outside the Russian capital. The plant is needed to meet the growing
demand for modern heavy trucks in Russia.

The first trucks to be assembled in the Zelenograd plant should roll off the
production line in the middle of 2001. The plant’s capacity in the first year
will be 200-300 vehicles but that can easily be expanded.

With over 6,000 vehicles registered, Volvo claims to be the leading brand in
the heavy truck market in Russia today and says that the sheer scale of fresh
investment needed in the transport sector means that the demand for new trucks
has barely begun to be tapped. Heavy vehicles currently in use on Russian roads
are very dated and badly in need of replacement.

Trucks produced in the new assembly plant will be backed up by 20 existing
service centres, strategically located on major transport arteries.