Cornerstone laying ceremony for Volvo plant - Cornerstone laying ceremony for Volvo plant : Volvo Vostok

Cornerstone laying ceremony for Volvo plant

The construction of a new plant of the Volvo group started in Kaluga with a cornerstone laying ceremony on October 15. Volvo and Renault Trucks are to be assembled at this plant. Total investments in construction will reach 100 million euros.
Kaluga is located 200 km southwest of Moscow. The construction of the plant is scheduled for completion by 2009.  Annual production at the plant will constitute 10,000 Volvo trucks and 5,000 Renault trucks, which will make it possible to satisfy the ever-increasing demand for heavy trucks in Russia and the CIS countries. The construction of the plant will help create nearly 1,000 new vacancies. As for the line-up, Volvo FH/FM/FL/FE and Renault Premium and Kerax trucks will be assembled at the plant. 
It should be added that Volvo Construction Equipment has also purchased 15 hectares of land in Kaluga within the framework of a 100-million-euro Volvo Group investment program. The site is intended for future production of excavators. Production is scheduled to start after 2010.
 "Russia, Ukraine, and Eastern Europe are among the world's fastest growing markets and the Volvo brand is held in great respect here," Said Thomas Kuta, president of Volvo CE in Russia, commenting on the deal. "The establishment of regional industrial production is a real advantage for the company, which aims to become a leading player in the construction equipment sector. Such capital investment also considerably shortens the adaptation period. Kaluga Region is only two hours from Moscow and is close to the main Moscow-Kiev highway linking Russia with Europe. This investment increases Volvo CE's advancement into the region and will make the company's products more accessible for Russia, Ukraine, CIS countries, and Eastern Europe, which will be greatly appreciated by local users and governments."

Taking part in the formal ceremony were President of Volvo Trucks Staffan Jufors, President of Renault Trucks Stefano Khmielewski, Governor of Kaluga Region Anatoly Artamonov, and Swedish Ambassador to the Russian Federation Juhan Mulander.
Supply by Volvo Trucks to the Russian market has increased significantly in recent years, from 500 units in 2003 to 2,500 units last year. Demand keeps growing this year - 2,600 trucks had already been shipped by the end of August, which is double the sale volume of the same period last year. At the present time, the Volvo Trucks dealership network has 35 authorized service stations and 20 sales offices located throughout Russia.
Renault Trucks sold a total of 533 units on the Russian market in 2006, while 608 new trucks had already been delivered by the end of August this year. Sales doubled in comparison with last year. At present, Renault Trucks Vostok service network includes 19 maintenance shops. Since the time Renault Trucks entered the Russian market in 2004, the number of shops has been growing rapidly.  
In order to satisfy the increasing demand on the Russian market, the plant in Kaluga will also produce Volvo Construction Equipment. No final decision has been made yet, but it is expected that equipment will be assembled, manufactured (in limited quantities), and stored at the plant. Production is scheduled to start after 2010, and obviously excavators will be the first to roll off the assembly line.