KALUGA, May 25 (RIA Novosti) - A delegation from the Swedish automotive corporation Volvo visited the Russian region of Kaluga, south-west of Moscow, to study the local business environment in the run-up to the projected construction of a truck plant there.
Around 20 executives from Swedish car-component producing companies spent two days in Kaluga along with Volvo Vostok director general Lars Corneliusson. It was their first trip to Kaluga since Volvo announced it had chosen the area to build the plant.
The Swedish businessmen came to study the local production and business environment before signing an agreement with the Kaluga government on the construction of the truck plant.
According to Nikolai Lyubimov, the Kaluga Region's minister for economic development, the Swedes were pleased with the local investment climate. Corneliusson said in the wake of the meetings with local government members and business executives that he was satisfied with the conditions offered by the region. He also said Volvo had more plans for the region in addition to the truck plant, including building a facility to manufacture automotive parts and a repair and maintenance center.
Other representatives of Swedish companies also said they would consider starting businesses in the Kaluga Region after visiting the local automotive-parts factories and the Kaluga-Yug technopark, where the Volvo plant will be located.
The facility is expected to begin operation in 2009 and will produce 15,000 trucks a year. Lyubimov estimated the project's cost at around 100 million euros. The Kaluga Region is ready to allocate 60 hectares of land in Kaluga-Yug for the Volvo plant.
