Mazda to invest $80 mln in Russian Far East: official

23rd June 2011, Comments 0 comments

Japan's Mazda Motor Corporation intends to invest $80 million (56 million euros) to build an assembly plant in Russia's Far East to meet demand for Asian brands in the region, the economy ministry said on Wednesday.

The Russian economy ministry signed an agreement with the Japanese company earlier this week under which the carmaker will produce between 25,000 and 50,000 cars per year, ministry spokeswoman Svetlana Glikman told AFP.

The company will produce the Mazda 6 and a new model, she said, without providing further details.

Over the past years Russia has encouraged foreign carmakers to set up shop in the country and all major automotive companies have now assembly plants in central Russia.

By contrast, Mazda is setting up production in the Primorye region on the Pacific known for its fondness of Asian brands like Toyota and Nissan.

The Russian auto market is now showing signs of recovery after enduring a torrid slump during the global economic crisis, with sales in 2009 plunging 49 percent.

© 2011 AFP

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