Fiat to build new plant in St. Petersburg

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Fiat is preparing to sign an agreement by March 2012 for the construction of a plant in St. Petersburg, Russia.

“Fiat has found a serious Russian partner,” said Alexey Chichkanov, head of the Investment Committee and the city’s strategic projects. “It will be a modern factory with large production volumes.”

The partner has not yet been identified; some sources close to the negotiations say it is Sberbank.

The Russian economic ministry announced last June Fiat would invest 1.1 billion euros in Russia to produce 120,000 cars per year. The new factory will help Fiat increase its presence in Russia, predicted to be one of the four fastest-growing economies over the next decade. The company will also be able to take advantage of government incentives for manufacturing development.