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Nissan Announces Plans for New Manufacturing Plant in St.Petersburg, Russia

Nissan Motor Co., Ltd., plans to invest US$200 million
(5.5 billion Rubles) in a new assembly plant in St. Petersburg, Russia. The announcement was made in Tokyo by President and CEO, Carlos Ghosn, during a press conference for the 2005 fiscal year results. Production will begin in 2009. The plan is subject to the approval and signing of an agreement with Russia’s Ministry of Economic Development and Trade.

When fully operational, the plant will employ around 750 people with a currently planned capacity of up to 50,000 units per year. The plant will produce a variety of vehicles specifically adapted for the Russian market.

“Russia has been a very successful market for Nissan and we see great prospects for the future,” said Ghosn. “Russia is an important part of our global growth strategy. This investment demonstrates our confidence in the high potential of the Russian economy,” continued Ghosn.

The factors that led to the selection of the St. Petersburg site include an available, high-quality work force, attractive location and infrastructure, a supportive business climate and the commitment from the regional government.

“The continued growth of the Russian market, and Nissan’s presence in that market, was a key factor in deciding to start local production,” said Colin Dodge, senior vice president, manufacturing, purchasing and supply chain management, Nissan Europe. “We are confident this plant will build upon Nissan’s reputation as an efficient and flexible manufacturer of high quality, attractive vehicles aimed at satisfying the needs of our Russian customers,” Dodge continued.

Established in August 2003, Nissan Motor Rus (NMR) is a Nissan national sales company. Based in Moscow, NMR began commercial operations on January 1,
2004 and currently employs 100 people. NMR distributes Nissan vehicles and parts across the Russian dealer network, which currently comprises around 30 sales outlets. In 2003, Nissan sold 9,470 units. Following the establishment of its wholly-owned national sales company, sales grew significantly in 2004 (28,436 units) and continued in 2005 (46,485 units). Russia will become the first European market to offer the Infiniti luxury brand with a planned launch in the fall of 2006.

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