German auto maker MAN Truck&Bus AG will launch truck production in St Petersburg in northwest Russia at the end of the first quarter of 2012, MAN Chief Executive Georg Pachta-Reyhofen said on Thursday.
The St Petersburg authorities and MAN signed a memorandum of intention on Thursday to establish truck production in Russia.
MAN's production facilities will be located in the Arsenal plant, the former production site of the U.S. auto giant GM. The German auto maker also intends to invest an additional $25 million in construction of its own facilities, the chief executive said.
The plant's annual output will reach about 6,000 trucks in 2013.
"We are not talking about assembly alone. We'll enhance production at each of the stages. We'll start with the upgrade of chassis, and then we'll build a painting and varnishing division," Pachta-Reyhofen said, adding that the company expected to receive most components from local suppliers.
"I hope that all the major components will be produced in Russia. We have already signed an agreement with KamAZ (Russia's largest truck maker), under which they will produce engines for us," Pachta-Reyhofen added.
ST PETERSBURG, Russia, April 14 (RIA Novosti)
