GOTEBORG, Sweden, March 20, 2003 (PRIMEZONE) -- Volvo (Nasdaq:VOLVY) (Other OTC:VOLVF) (Other OTC:VOLAF): Today's inauguration by Volvo Trucks of its own factory in Russia makes this the first Western truck maker to establish its own production facility for heavy trucks in the country. The company initially expects to produce 200-300 trucks annualy for the Russian market.
This move is the result of a joint project together with Russian partner AFK Sistema. The new facility in Zelenograd, just north of the Russian capital, is part of the focus on this country's growing market for modern heavy trucks.
There are currently about 12,000 Volvo trucks on Russian roads. Following a couple of weak years in the wake of the 1998 economic crisis, the market has recovered and last year Volvo delivered 423 trucks.
"An industrial base in Moscow will reinforce our position in Russia. It is important to have a firm local presence in order to grow with the market," said Jorma Halonen, President and CEO of Volvo Trucks.
At the same time as Volvo Trucks establishes its own production base in Russia, it is also investing in sales to meet the demand for modern heavy trucks.
With the establishment of its own production plant in Russia, Volvo Trucks now has production facilities in 15 countries the world over.
For further information, please contact: Claes Claeson, Volvo Truck Corporation telephone +46 31 - 66 39 08 or +46 708 - 36 39 08 E-mail: claes.claeson@volvo.com
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