Mercedes-Benz opens new factory in Russia
Aim is 25,000 vehicles annually
Mercedes-Benz opens factory in Russia
On April 3, Mercedes-Benz officially inaugurated its new production facility in Russia. In the “Moscovia” car plant, located some 40 kilometers from Moscow, the premium manufacturer will produce four models for the Russian market. The Daimler Group has invested more than 250 million euros in its Russia site.
These are the key figures for the new Mercedes-Benz plant near Moscow:
- Less than two years of construction time,
- around 1,000 employees,
- 25,000 vehicles annual capacity
The new Mercedes-Benz plant near Moscow was officially opened on April 3 with the participation of Russian President Vladimir Putin, Minister of Economics Peter Altmaier and Daimler CEO Dieter Zetsche. “Despite German sanctions, the German economy continues to grow very strongly in Russia, as shown by major investments by car manufacturers such as Mercedes, as well as Volkswagen and numerous small and medium-sized companies. Last year, German companies invested so much in Russia that net direct investment in the country compared to the previous year increased by 26.4 percent to two billion euros, “says AHK CEO Matthias Schepp.
Production for the Russian market
“Moscovia”, the name of the new Russian site, is located about 40 kilometers northwest of Moscow in the industrial park Esipovo and covers an area of 85 hectares. Mercedes-Benz wants to serve the local market from here – initially with E-class sedans, later with three other SUV models.
Already in 2019, 5,000 vehicles are expected to roll off the production line, with capacity utilization of 25,000 units per year. Mercedes-Benz currently sells around 38,000 cars a year in Russia, including light commercial vehicles.
“We will do our utmost to support such projects, which are being implemented jointly by Russian companies and international partners,” said President Vladimir Putin in his speech.
Mercedes-Benz will not be disappointed by the deepening of the Russian business, Putin said. After all, over the next ten years, the Russian budget expects to receive 4 billion rubles (about 60 million euros) from the new location, said the Russian president, in addition to the 19 billion rubles (more than 250 million euros) that the Daimler Group has already invested in Russian production.
Federal Minister of Economics Peter Altmaier made positive comments in his speech. The Russian economy has made great achievements over the past 20 years. “In this major lighthouse project, we have proof that Russian-German cooperation can be expanded even more,” says Altmaier.
“The Mercedes-Benz Moscovia plant is another building block in our strategy of producing where our customers are. And both partners benefit from this: Russia and Mercedes-Benz,” said Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.