Volkswagen is planning on expanding its operations in Russia and in a bid to do so they have signed a new contract with the government of Kaluga Province in Russia.
The German brand will be building a new 30,000m2 engine plant right next to its current plant. Volkswagen group will be investing a total of 250 million Euros in this new plant that will have an annual capacity of 150,000 engines. VW will manufacture the 1.6 litre petrol engine from the EA 211 series which will be the most up-to-date engine technology in the Volkswagen Group. By 2016, 30 percent of the vehicles produced in Russia will be equipped with engines manufactured at this new plant. Up until now VW has invested a total of one billion dollars in Russia and will be investing more in the future.
