Nissan opens Russian plant
Japanese car maker, Nissan sees great opportunity in Russia as it builds its new $200 million assembly plant in St. Petersburg.
The new Russian plant is expected to begin building the redesigned Teana sedan in early 2009. The facility, which includes paint, trim and chassis lines, will have an annual capacity of 50,000 units. After the launch of the Teana, Nissan expects to add production of the redesigned X-Trail crossover.
The factory will produce annually 50,000 cars at the first stage. The volume of investments in the project will total $200 million.It will also open doors to 750 new employees.
Nissan executive vice-president Carlos Tavares noted that the decision on building Russia’s first factory was prompted by the company’s strategy, presupposing a rise in revenues and an increase in profits on investments as well as by geographic expansion.
“Geographic expansion in our understanding is not only a rise in car sales. We also determine where it is more expedient for us to make investments and to create new production facilities,” said the representative of the Nissan management.
He called the Russian market as very promising for Nissan: in the first six months of 2007 alone, the volume of Nissan car sales jumped up by 82 percent. The company placed fourth among foreign brands in Russia.
According to forecasts announced by Tavares, “Russia will soon outstrip Britain which is now the largest Nissan market in Europe”.
The Petersburg factory will use the most efficient production processes, successfully applied at the British Nissan factory. The Japanese corporation will also ensure training of the Russian personnel in advanced methods.
Tavares called the presence in the city of a seaport as an additional advantage for building the Russian Nissan factory in St. Petersburg, which “offers the company broad logistical opportunities”.
Petersburg Governor Valentina Matviyenko noted that “the seaport of St. Petersburg already mulls over a possibility of building a new terminal specially to meet the needs of the car industry”. The St. Petersburg plant is Nissan’s first in Russia. The automaker said it expects Russia will overtake the U.K. this year as Nissan’s top sales market in Europe. Last year, Nissan sold 75,000 vehicles in Russia.
Russia’s booming economy and fast growing market has attracted a number of carmakers in recent years - most notably Toyota, Renault and Kia Motors.
Accountants PricewaterhouseCoopers have predicted that the Russian car market will be worth $96bn in sales by 2011.