03 June 2004 15:47
Electrolux to build washing machines in Russia
St Petersburg, 3 June: Sweden's Electrolux Group holding is to build a plant in the Russian city of St
Petersburg to produce washing machines, St Petersburg's deputy governor Yuriy Molchanov told a conference Thursday
[3 June]. The investments in the construction are expected to amount to 70m euros.
Earlier on Thursday Russian business daily Vedomosti reported that the plant is to cost 9m euros to build. On
Wednesday the relevant agreement was reached between the representatives of the company and St Petersburg governor
Valentina Matviyenko. According to Molchanov, the plant is expected to be launched in January 2005 and is to produce
washing machines under the Electrolux and Zanussi brands. Electrolux is to build the plant on the site of another St
Petersburg plant, the refitting of which is to start this month.
At the first stage Electrolux is to import assembly units for the plant but later will use assembly units made by
Russian manufacturers. The Swedish company is now considering 150 Russian companies that could provide assembly units
for the plant, Molchanov said. The plant's capacity at the first stage is to amount to 250,000 washing machines a
year but in two years the company plans to increase the plant's capacity to a million units a year, Molchanov said.
Electrolux said earlier that the plant's annual capacity is to amount to 150,000 washing machines.
Analysts say that launching a production unit in Russia will enable Electrolux to strengthen its position on the
Russian market and to lower production and logistics costs.
[Passage omitted: general background on Electrolux]
[Prime-TASS news agency] |
RUSSIA IN FACTS
