GM-Avtovaz begins building $209 mln production facility
SAMARA. June 14 (Interfax) - GM-Avtovaz, the joint venture between Avtovaz and GM located in Togliatti, has begun building a production facility for next-generation Chevrolet Niva SUVs, the JV said in a press release.
The 200,000-square meter plant, which will cost an estimated $209 million, is located at a site owned by a subsidiary, JV Systems LLC.
The new plant will have capacity to produce 120,000 bodies for next-generation Chevrolet Nivas.
Production is scheduled to begin in December 2015.
The new facility includes body and metal forming stations, a logistical center and production workshops.
Avtozavodstroi from Togliatti has been selected to design and build the new facility.
GM-Avtovaz began producing the Chevrolet Niva on September 23, 2002.
It was reported earlier that the JV may boost production to 120,000 cars a year by 2015 from 98,000 currently. Once production of the new bodies begins, output of older models will be halted.
Samara region is home to a special economic zone (industrial production). A total of 13.6 billion rubles was spent on creation of infrastructure for the zone in 2010-2013, including 7.2 billion rubles from the federal budget, 774 million rubles from regional and local budgets and 5.6 billion rubles in non-budgetary financing.
