Volkswagen laid foundation for new
plant in Kaluga
Photo: Volkswagen
The Minister of Economic
Development and Trade of the Russian Federation, German Gref,
and the Chairman of the Board of Management of Volkswagen
Aktiengesellschaft, Dr. Bernd Pischetsrieder, laid the symbolic
foundation stone for Volkswagen’s new Russian plant in Kaluga on
Saturday. “This investment in Kaluga is of great strategic
importance for our Group. By producing in Russia, the Group has
the chance to profit from dynamic growth on the Russian
automobile market.” The contracts for setting up the plant were
signed in Moscow on May 29, 2006.
It is planned to begin assembling
semi-knocked down Volkswagen and Skoda brand models as early as
next year. The full plant with an annual capacity of 115,000
vehicles is to commence production in 2009. A body shop, paint
shop, assembly lines and offices will be built on the approx.
400 hectare site located on the outskirts of the city of Kaluga.
“The automotive market in Russia
is one of the world’s most interesting. So far, Group brands
have only been represented in Russia through sales companies.
However, if we wish to enjoy sustained benefits from the growth
forecast for this market, we have to produce in Russia as well,”
Pischetsrieder said. He underlined that production in Kaluga
would bring as many as 3,500 direct new jobs for Volkswagen in
Russia. Further positive labor market effects were expected as
component suppliers and other enterprises active at various
stages in the automotive value chain located in the region.
.
“Furthermore, numerous
components will be delivered from other Group plants in
the medium term. That will stabilize jobs at other
plants in the Group,” Pischetsrieder added.
The new plant will build
vehicles tailored to the needs of Russian customers and
suited to local road and climate conditions. “We will be
building vehicles to Volkswagen’s global quality
standards and deploying advanced machinery and tools as
well as highly-skilled manpower,” Pischetsrieder
emphasized.
He added that the price of the
locally-produced model would be in line with prices on the
Russian market. Other Volkswagen models would continue to be
exported to Russia after the plant had been commissioned, so
that the Group would be offering customers a broad range of
vehicles. “Experience has shown that the Group’s enhanced local
presence also strengthens imports of complete vehicles,”
Pischetsrieder said.
Detlef Wittig, Chairman of the Board of
Management of Skoda and member of the Board of Management of the
Volkswagen brand, drew attention to the market initiative which would be
running parallel to construction work in Kaluga: “We will be gradually
expanding the network of dealerships and service companies for the
Volkswagen and Skoda brands in Russia to keep pace with growing
production capacity. Our goal is to offer customers both high-quality
vehicles and a service oriented to international standards. Attractive
financing packages from our Russian financing subsidiary will round off
our customer offering.”
Construction work at the site some 160
kilometers south west of Moscow began as soon as the contracts setting
up the Volkswagen plant were signed at the end of May. More than 500
people are currently working at the site round the clock, and over 200
heavy-duty construction vehicles are being deployed. The earthworks
alone present a challenge for the construction team. Before the plant is
finished, in excess of six million cubic meters of earth will have been
moved to level out the site surface.
In the final construction phase, the new
plant in Kaluga will have its own railway line to ensure the reliable
delivery of parts and components. One section of land has also been
earmarked for suppliers wishing to settle on site.
