State Technology Corporation Rostekhnologii plans to embark on a joint small arms production venture with Italian firearms company Bretta, Kommersant business daily reported on Friday.
Director General of Rostehnologii Sergei Chemezov told Russian Prime Minister Vladimir Putin on Thursday the state corporation is negotiating with the Italian company on the production of "hunting and sporting arms, and handguns for the special services and police."
A source familiar with the details of the negotiations told Kommersant the projected annual sales of the project amount to around 35 million Euros. Annual production is projected at 160,000 weapons, including 100,000 hunting weapons (half of which will be exported to CIS countries) and 60,000 pistols for the security services.
The joint venture is to be based at the Molot plant in Russia's Kirov region. Production at the factory is currently suspended due to economic decline.
The joint venture is unlikely to solve the plant's unemployment problems as only 10% of the plant's former staff will be employed in the project.
MOSCOW, May 7 (RIA Novosti)
