General Motors will build a greenfield manufacturing facility here in the Shushary region. The plant will go live in late 2008 with initial full-year capacity of 25,000 units.

The plant will produce Chevrolet Captiva SUVs and a new generation of compact cars from CKD kits. Starting as early as September, a separate SKD facility in the city of St. Petersburg will begin operation. Total investment in the new facilities amounts to $115 million.

“This project clearly demonstrates our commitment to Russia as one of the world's fastest growing auto markets,” said Wagoner. Chairman and CEO of GM. “With the addition of this new, wholly owned facility, GM and its partners will be able to assemble more than 100,000 cars a year in Russia.”

The new assembly plant on the outskirts of St. Petersburg will employ more than 700 workers who will be recruited specifically for their ability to set up and operate a world-class production facility.

“We are delighted that General Motors has recognized the value of strategic investment projects in our city,” said Valentina I. Matvienko, governor of St. Petersburg. “We will endeavor to repay this trust by ensuring that General Motors is satisfied with the choice of its newest manufacturing plant. It is my fervent hope that General Motors has blazed a trail that its suppliers will soon follow to enjoy the benefits the St. Petersburg region offers.”

The facility will operate according to GM’s global manufacturing system to ensure the highest levels of quality. In order to leverage the company's global manufacturing expertise, GM’s leading assembly plants will host numerous new employees from Shushary for comprehensive training programs.

GM has been active in Russia since 1992. The St. Petersburg project complements existing GM operations in Togliatti and Kaliningrad.

Established in Togliatti in 2001 as the first joint venture on the Russian automotive market, GM Avtovaz builds the Chevrolet Niva and Viva. GM, with partner Avtotor, began SKD operations in Kaliningrad in 2004 and now assembles Cadillac, Hummer and Chevrolet models.

For MORE NEWS BRIEFS, click here.

For a FREE SUBSCRIPTION to Expansion Management, click here.

For MORE NEWS BRIEFS SORTED BY COUNTRY, click here.

For MORE NEWS BRIEFS SORTED BY STATE, click here.

For MORE NEWS BRIEFS SORTED BY INDUSTRY or FUNCTION, click here.