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MOSCOW, May 29 (RIA Novosti) - Russia's Economics Ministry and German carmaker Volkswagen AG (NYSE: VOW) signed an agreement Monday on the construction of a car-assembly plant in the central Russian region of Kaluga.
The new factory will assemble Polo, Passat, Touareg, Skoda and other models designed for the Russian market and is set to produce 115,000 cars annually.
Construction will begin in August 2006. The factory is expected to open in September 2008, and is slated to employ 3,500 people.
Investment in the new factory will total 270 million euros.
Other foreign carmakers active in Russia include Ford, which currently assembles its cars in the Leningrad Region town of Vsevolozhsk, Renault in Moscow and General Motors, BMW and Kia in Kaliningrad, Russia's exclave on the Baltic Sea.
Japan's Nissan has said it is also planning to launch production in Russia soon. Russia's SeverstalAvto has signed licensing agreements with Fiat, Ssang Yong and Isuzu, while AvtoVaz and General Motors are producing the Chevrolet Niva 4WD.
