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New Nissan Manufacturing Plant In Russia Finalized

American Government Special Collections Reference Desk

Topics:  Nissan

New Nissan Manufacturing Plant In Russia Finalized

Tracy Dawson
June 14, 2006

The Nissan Motor Co., Ltd. would be going ahead with its plans on building a new manufacturing plant in Russia, specifically in St. Petersburg. In fact, as part of this plan on building this plant, the company has already gone ahead and signed an agreement with the country’s Ministry of Economic Development and Trade of the Russia Federation which is more known as the MEDT.

The agreement is known as the Decree 166. Those who signed on this agreement included Herman Gref who is the Minister of Economic Development and Trade of the Russian Federation. On Nissan’s end, it was Nissan’s president and CEO, Carlos Ghosn, who signed. Apart from the said decree, Nissan still had to sign a Memorandum of Understanding with the St. Petersburg Government. Ghosn signed on this memorandum along with Valentina Matvienko who is the governor of St. Petersburg.

This new assembly and manufacturing plant that will be built in St. Petersburg, Russia would cost the company a whopping $200 million. The company foresees that come the year 2009, this plant would be functional and fully operational. Plans also include that this plant would be able to create more jobs for many people. There would be around 750 people to be employed. Production of the plant would also take up to 50,000 units per year. Nissan cars that are specially targeted for the Russian automobile market would be among the list of cars that would be manufactured in this plant.

According to Ghosn, “In signing this agreement, Nissan is committing to contribute significantly to the development of the Russian car market. Through the creation of new employment and investment in the local community, Nissan is making a confident statement about its operations in Russia. We look forward to a long and mutually-beneficial relationship with the people of St. Petersburg.”

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