ST. PETERSBURG - Kia Motors trying to set up a joint venture in the Crimean resort of Feodosiya. It could start assembling vehicles by the end of the year.
Andrei Senchenko, deputy prime minister of the district's government, said the Russian International Fund for Investment and Development would provide some financing. The venture also involves a local partner.
Preliminary talks on components supplies have already been held with Goth Logistics Services, a western European firm.
Kia intends to make the Clarus executive-class car and the Besta and Topic minivans. Two facilities will be involved. One will use stationary team production, and the other will have an assembly line. The team production unit has a capacity of 5,000-10,000 units a year and requires investment of $5 million. The assembly line will be able to turn out 50,000-60,000 cars and vans a year and will cost $70 million.
Total investment in the venture, including working capital, will amount to $280 million.