ST. PETERSBURG, June 13 (RIA Novosti) - Russia's economics ministry and Japanese carmaker Nissan signed a deal Tuesday to build an automotive plant in Russia.
Economic Development and Trade Minister German Gref and Nissan Chief Executive Carlos Ghosn signed the agreement on the sidelines of an economic forum in St. Petersburg.
Nissan said it would invest about $200 million into car making in Russia. The first cars will be rolled out in October 2008, and annual output is expected to reach 50,000 cars. The Japanese company said it would adapt its models for the Russian market.
A number of foreign carmakers, including U.S. giant Ford and France's Renault, are already working in Russia. German carmaker Volkswagen signed an agreement earlier this month to set up an assembly plant in central Russia, while U.S. General Motors will start construction of an assembly plant this week.
Ghosn and St. Petersburg Governor Valentina Matviyenko also signed a memorandum on understanding that said the plant would be built in the city's Kamenka industrial zone.
Gref said Nissan had chosen St. Petersburg in a tender that had also involved regions in European Russia including Kaluga, Moscow, Leningrad (around St. Petersburg) and Novgorod. He thanked the company for choosing the site and drafting the contract quickly.
"The company has had a swift start, and will hopefully keep up this pace," Gref said.
