Friday, February 02, 2007

Renault to Invest and Expand More in Russia

Russia is becoming a very attractive market for the auto industry. It can offer cheap but highly skilled labor for the auto makers while its auto market is flourishing too. Renault is now keen to take advantage of the Russian market. That is why it is going to increase its investment in Russia.

Forbes reported:

French car maker Renault SA will invest $150 million to double its production capacity in Russia and generate 1,000 new jobs, the company said Friday, citing soaring demand for its budget Logan brand.

Under an agreement signed Friday with the Moscow government, Renault (other-otc: RNSDF.PK - news - people ) will increase capacity at its Avtoframos factory in Moscow to 160,000 vehicles per year by mid-2009, the company said in a statement.

For its part, City Hall will provide additional land for the expansion, which will boost the factory work force to 3,300 from 2,300.

Russia is strategically located between Asia and Europe. So, if Renault can produce cars here it is can address both the markets.