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Volkswagen Group engine plant next to VW vehicle plant in Kaluga, Russia: 150,000 capacity

A new engine plant is being initiated by Volkswagen Group. This new engine plant is expected to come up adjacent to the Volkswagen vehicle plant in Kaluga which is being constructed at an investment of €250 million. This plant will be used for production of the new engine generation EA211 which will begin production from 2015. Capacity of the plant is pegged at 150,000 engines per annum, and contracts in this regard are being signed as we speak.

Spread over an area of 30,000 sq meters, the new plant in Kaluga will supply engines for vehicle production of Volkswagen Group Rus in Kaluga while also to GAZ plant in Nizhny Novgorod. The engine produced will be a 1.6 liter petrol engine from E211 series thus making it the most up-to-date engine in Volkswagen Group. With this new plant coming up in Russia, Volkswagen will be expanding their industrial commitment within the country.

In association with the Russian Government, by 2016, about 30% of vehicle produced in Russia will be fitted with engines that are manufactured locally. Volkswagen Group is also planning further investment of €1 billion for development of new market driven products within the country.

News release: Volkswagen Group builds own engine plant in Russia
Local engine production at the Kaluga site within framework of Group growth strategy

State of the art engine technology from Russia as of 2015

The Volkswagen Group is expanding its capacities in Russia. Dr Martin Winterkorn, chairman of the Board of Management of Volkswagen Aktiengesellschaft, and Anatoly Artamonov, Governor of the Kaluga province, today will sign contracts in Moscow concerning the construction of an engine plant in Kaluga, Russia. The Volkswagen Group will invest approximately 250 million euro at the new location, where the modern engine generation EA211 will be produced locally as of 2015. The capacity is set at 150,000 engines a year. The engine plant is being built directly next to the Volkswagen vehicle plant in Kaluga.

“Russia is the primary strategic growth market in Europe for the Volkswagen Group. By 2018 we intend to sell a half a million vehicles here annually. To this end we will once again be investing approximately 1 billion euro in local production and new models”, said Dr Martin Winterkorn, chairman of the Board of Management of Volkswagen Aktiengesellschaft, on the occasion of the contract being signed. “Our new engine plant shows: The Volkswagen Group remains a powerful engine for the Russian automotive industry and the Russian economy in general.” The engine that will be produced in Kaluga in the future is a 1.6 litre petrol engine from the EA 211 series and thus represents the most up to date engine technology in the Volkswagen Group.

Volkswagen is investing approximately 250 million euro in the 30,000m2 new plant in Kaluga. As of 2015, the engine plant will supply engines for the vehicle production of the Volkswagen Group Rus in Kaluga as well as the contract production in the GAZ plant in Nizhny Novgorod. Crankcases, cylinder heads with assembly integrated, crankshafts as well as the complete engine assembly are all part of the planned scope of production.

With the construction of the engine plant, Volkswagen is expanding its industrial commitment in Russia. At the same time, the Group is fulfilling the targets agreed with the Russian government at the end of May 2011 in the ancillary agreement to decree 166. This determines that, as of 2016, at least 30 percent of vehicles produced in Russia will be equipped with engines that were manufactured locally.

Investments by the Volkswagen Group in Russia up to now have totalled approximately one billion euro. In order to respond to the strong increase in demand on the Russian automotive market in the future, the Group is planning to invest a further one billion euro in Russia for the development of new market-driven products, the further localisation of production as well as the construction of the new engine plant in Kaluga as was agreed today.



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