Renault signs a framework agreement with the City of Moscow to double the production capacity of the Avtoframos plant

Luc-Alexandre Ménard, Renault's Senior Vice-President, Public Affairs and Euromed Regional Leader (eastern Europe and Mediterranean zone), and E. Panteleev, Moscow Government Minister, today (May 16, 2007) signed a framework agreement in Paris concerning the implementation of the project to increase production at the Avtoframos plant in Moscow. This agreement, which follows the heads of agreement document signed on February 2, 2007, involves increasing the capacity of the plant to 160,000 vehicles per annum.

The City of Moscow will make available the necessary land for this expansion, while Renault will invest USD150 million in the renovation of the buildings and the installation of production plant.

Production is due to begin in two years' time with the introduction of a new model based on the Logan platform.

The principal phases of the project's implementation over the next 18 months include the site's refurbishment to meet the needs of the new activity, as well as the renovation of the plant buildings and operational floor space.

Meanwhile, the City of Moscow will develop a suppliers' zone on the land it will continue to own and which will be specially prepared for the purpose. As part of its plans to expand production at the Avtoframos plant, Renault expects to recruit approximately 1,000 staff.