German heavy truck maker and engineering group MAN announced on April 14 that it will launch production in Russia, one of the biggest markets in the sector.
The group signed a "memorandum of understanding" with the governor of the city of St. Petersburg, sealing the deal on Aril 14.
"MAN will in future be building trucks for its target markets in Russia, Belarus and Kazakhstan in Russia," the company said.
"In the medium term, a production capacity of some 6,000 vehicles per year is planned," at the St. Petersburg plant.
"It is above all the advantageous infrastructure conditions that speak in favor of St. Petersburg," added Lars Himmer, managing director of MAN Truck & Bus in Russia.
"We will probably build our production line in existing premises, that will save us long construction and start-up times," he added.
MAN plans to invest some 25 million euros (US$36 million) in the Russian factory which it will own and on founding a MAN-owned production company in St. Petersburg.
Last year the truck-maker sold 3,500 six-toe-plus vehicles in Russia and foresees strong growth in years to come.
Copyright Agence France-Presse, 2011