Russia: Toyota to open new plant in St Petersburg
Friday, December 21, 2007, AutomotiveWorld.com
Toyota will open its St Petersburg vehicle assembly plant later on 21 December, Russian news agency RIA Novosti reports. The OEM will initially produce 20,000upa of its Camry sedan at the facility.
According to Toyota, should the need arise, output at the new plant could be increased to 50,000upa over the next few years. When fully operational, the factory will employ 600 workers.
"We are hoping that one day the plant will produce 200,000 to 300,000 units per year. Then we can start considering production of budget-class cars," Reuters quotes Toyota president Katsuaki Watanabe as saying.
Since 2005, the OEM has invested a total of Rubles 3bn (US$121.4m) at the site.
The vehicle selected by Toyota is suited to local tastes, with the Camry not sold elsewhere in Europe following poor sales of previous generation models. Low fuel prices, a liking for larger cars compared to those preferred by buyers in Western Europe and a strong brand image for Toyota are behind the decision to build the Camry.
Earlier this week, Hyundai signed a memorandum of understanding with the city of St Petersburg to set up a new manufacturing facility. Work is expected to commence by June, with completion scheduled for 2010. When operational, the plant will have output capacity of 100,000upa.
Suzuki and its Japanese trading company partner, Itochu, also signed a deal with the Russian Economic Development and Trade Ministry in summer 2007 to assemble cars in St Petersburg. Construction work on this plant is scheduled to commence in 2009, RIA Novosti says.
Published on Friday, December 21, 2007
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