Sweden’s Electrolux Group, a major producer of household appliances will build a washing machine plant in St. Petersburg, the deputy governor of the city Yury Molchanov told reporters on Thursday. According to Molchanov, total investments in the construction of the plant are expected to amount to †70 million, Prime-Tass economic news agency reported. Meanwhile, earlier today the Vedomosti business daily reported that the plant is to cost †9 million to build.
The agreement between Electrolux’ representatives and Governor of St. Petersburg Valentina Matvienko was reached on Wednesday. Molchanov told reporters that the plant is expected to be launched in January 2005 and will produce washing machines of the Electrolux and Zanussi brands.
The plant’s initial output capacity is expected to be 250,000 washing machines a year, but in two years the Swedish company plans to increase the output to one million units a year, said the city official. Meanwhile Electrolux officials said earlier that the plant’s annual capacity is to amount to 150,000 washing machines.
The analysts said that launching a production unit in Russia will enable Electrolux to strengthen its position on the Russian market of household appliances and to lower its production and logistical costs.
From Mosnews