Volvo invests $1.159 billion to make truck cabs in Russia
The market for Western-style, premium heavy trucks in Russia is expected to hit about 28,000 vehicles in 2012
GÖTEBORG, Sweden—The Volvo Group is investing $ 1.159 billion (783 million Swedish krona) in a new facility to make truck cabs at its existing plant the Russian city of Kaluga.
The facility, which Volvo expects to begin production in 2014, will manufacture cabs for the Volvo and Renault Trucks with a total annual capacity of 15,000 cabs.
“The investment is a natural step in efforts to further consolidate our strong position in the premium heavy trucks segment in Russia,” says Volvo’s CEO Olof Persson.
The plant in Kaluga, about 200 kilometers south of Moscow, was inaugurated in 2009 and currently supplies Russia and surrounding countries with trucks under the Volvo and Renault Trucks brands.
Volvo forecasts the total market for Western-style premium heavy trucks in Russia is expected to be about 28,000 vehicles in 2012, a two-fold increase compared with 2010.