German BSH Bosch und Siemens Hausgeraete will invest 50 million euros (approx. U.S. $65 million) into refrigerator plant construction in St. Petersburg's new industrial zone, the company said.
The construction will start in the first quarter of 2007 on a 25-hectare land plot in the Neudorf-Strelna land development in Russia.
The Neudorf-Strelna zone is one of the few in the city with modern engineering communications networks, a factor that played a decisive role in the company's choice of location.
"We chose St. Petersburg because of its excellent assets in terms of infrastructure and manpower, the transport accessibility, and availability of potential suppliers," Eva Delabre, BSH corporate communications officer, said.
"We found the local investment climate good and the administration competent," Ms. Delabre said.
Bosch expressed interest in building a factory in Neudorf back in December, but was unable to confirm the decision until now. It will be the company's second plant in Russia, the first being a gas-stove factory that opened in the Moscow region in 1998.
"Russia is a big emerging market and the company hopes for further growth and development in the country," Ms. Delabre said.
The new plant is supposed to provide the nearby towns of Lomonosov and Peterhof with 500 new job places in the first year of operations.
Bosch said the plant will have an annual capacity of 500,000 refrigerators after the first order of assembly lines is installed. According to the city statistics bureau, St. Petersburg has about 2 million households, and if the average refrigerator life span is 12 years, the factory will provide a considerable contribution to the local consumer appliances market. (The St. Petersburg Times)
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