The Volvo Group is investing over US$130 million in an assembly facility for trucks in Russia. The investment is being made to meet increasing demand on the fast-growing markets in Russia and the former countries in the Soviet Union. The new facility will have a capacity of 10,000 Volvo trucks and 5,000 Renault trucks per year.
The facility will be located in the city of Kaluga, approximately 200kms southwest of Moscow. A final agreement with the authorities in Kaluga is expected to be signed in the near future and the new facility is scheduled to be completed in 2009.