( RIA Novosti ) - Swedish car maker Volvo plans to start construction of a truck plant in the Russian region of Kaluga, southwest of Moscow, on October 15, the company said Monday.
Volvo Trucks will set up a plant building both Volvo and Renault trucks in a free economic zone outside Kaluga, a city about 188 km southwest of Moscow, which should amount to some 3.5 billion rubles ($134.72 million) worth of investment.
The facility is expected to begin operation in 2009 and will produce 10,000 Volvo and 5,000 Renault trucks a year. The Kaluga Region allocated 40 hectares of land in Kaluga-Yug for the Volvo plant.
Volvo has an assembly line near Zelenograd, in the Moscow Region, which has been operating since 2003. However, production is currently running at full capacity with a maximum of only 500 vehicles being assembled a year.