MAN to produce trucks in Russia
German heavy truck maker and engineering group MAN announced Thursday plans to launch production in Russia, one of the biggest markets in the sector.
The group signed a "memorandum of understanding" with the governor of the city of St. Petersburg, sealing the deal Thursday.
"MAN will in future be building trucks for its target markets in Russia, Belarus and Kazakhstan in Russia," the company said in a statement.
"In the medium term, a production capacity of some 6,000 vehicles per year is planned," at the St. Petersburg plant.
"It is above all the advantageous infrastructure conditions that speak in favour of St. Petersburg", added Lars Himmer, managing director of MAN Truck & Bus in Russia.
"We will probably build our production line in existing premises, that will save us long construction and start-up times", he added.
MAN plans to invest some 25 million euros ($36 million) in the Russian factory which it will own and on founding a MAN-owned production company in St. Petersburg.
Last year the truck-maker sold 3,500 six-tonne-plus vehicles in Russia and foresees strong growth in years to come.
© 2011 AFP