Hyundai VIA has begun construction on an auto engine plant near St. Petersburg.
The enterprise initially plans to make 240,000 engines per year. Then, the capacity will increase, and the plant will make 300,000 Gamma I engines of 1.6 liters.
The project has been established under a special investment contract. The investors “injected” US$185 million (13.1 billion Rubles) into the project. The plant will bring about 500 jobs to the city.
Test launch of the plant is planned in Q1 2021, and mass production is scheduled to start in October 2021. Read The Article
PSR Analysis: The engine building industry is a focus for the Russian Government. One part of its development plan is to concentrate as much engine building as possible inside the country. It looks as though the SPIC (Special Investment Contracts) is a proper tool for this. PSR
Maxim Sakov is Market Consultant, Russia, for Power Systems Research
