. Volkswagen to build production plant in
Russian city of Kaluga
The Volkswagen
AG Board of Management has decided to build a new production plant
in the city of Kaluga south west of Moscow. The new facility will
have an annual production capacity of 115,000 vehicles. Dr. Bernd
Pischetsrieder, Chairman of the Board of Management of Volkswagen
AG, said: “This decision is of major strategic significance for
the Group. It ensures we will be able to substantially increase
our share of the rapidly-growing Russian automotive market over
the coming years.” It is planned to sign the contracts with the
Russian government and the Kaluga Oblast in Moscow on May 29.
Pischetsrieder
said that, taking everything into consideration, the.location offered
the best framework for the investment. In total, Volkswagen had
examined some 70 sites between St. Petersburg, the Urals and the
Black Sea as potential locations for the new plant.
The city
of Kaluga is situated at the center of the European part
of Russia some 160 kilometers to the south west of Moscow.
The city has a population of approximately 330,000. Kaluga
is well known for research and industry and is the seat
of the regional administration.
In a first
step, semi knocked-down Volkswagen and Skoda brand models
will be assembled in Kaluga from the second half of 2007
(SKD assembly).
The Skoda Octavia
will be the first model to leave the assembly line. Initially, some
20,000 units will thus be produced annually. At the same time, full
production facilities comprising body shop, paint shop and assembly
lines will be installed
