09 Sep 08 Volvo Trucks to Build Russian Plant

The Swedish company Volvo has recently showed its interest in putting up a plant in the region of Kaluga in Russia. A group of representatives from the company known for safe cars and trucks has recently visited the region which is said to be a precursor to building an assembly plant in the country. The company announced that the delegation was sent to the region to study the local business atmosphere. The company is planning to build trucks at the proposed assembly facility in the area south-west of capital Moscow. This plant will surely increase the presence of the second largest bus and truck manufacturer in the growing Russian truck market.

About 20 representatives from car parts manufacturers in Sweden visited the said area. The visit is the first that the executives have made to the area after Volvo announced that they will be building an assembly plant in the said area. After studying the local business practices in the area, Volvo is expected to sign an agreement with the Kaluga government before starting the construction of the new assembly plant.

In fact, it was hinted that Volvo has more plans for the region except the truck assembly facility. It was reported that Volvo might build a parts manufacturing center in the region which might produce Volvo rotors, suspension assembly and other essential auto parts. It is also possible that Volvo will put up a repair and maintenance center in the region. The presence of such facility will greatly help Volvo increase their popularity among Russian truck buyer if they will provide a maintenance and repair center for Volvo trucks.

Aside from Volvo, other Swedish companies have expressed their interest in putting up businesses in the area after visiting the area and learning the current local business environment. These companies are manufacturers of auto parts which is a great complement to the truck assembly plant.

Tags: truck manufacturer, Trucks, Volvo trucks