06:30 GMT +3 hours23 November 2014
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Putin Attends Russian-Japanese JV Opening Ceremony

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(updated 18:28 28.10.2014)
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Russian President Vladimir Putin has attended the opening ceremony for a Russian-Japanese car assembly plant in the Russian Far Eastern city of Vladivostok.

Russian President Vladimir Putin has attended the opening ceremony for a Russian-Japanese car assembly plant in the Russian Far Eastern city of Vladivostok.

Putin left his signature on one of the first vehicles produced by the Sollers-Mazda joint venture.

The agreement on the establishment of a joint car assembly plant (Mazda Sollers Manufacturing Rus) on a parity basis was signed by Russia’s Sollers and Japan’s Mazda Motor Corporation in late April. At the first stage, the plant will produce 50,000 cars annually. Later its capacity will be increased to 70,000.

Putin praised the project and said it will be profitable to both Russian carmakers and their Japanese partners, adding that it is also “good for the budget system as it creates jobs and ensures that taxes are paid.”

Sollers is a Russian company providing a range of services, including car manufacturing, sales and maintenance.

Startup investment in the new venture will total $350 million, Sollers chief Vadim Shvetsov said.

Primorye Territory Governor Vladimir Miklushevsky said that the joint venture will have “a multiplication effect on the region’s development.”

“The new plant is a strategic project that will bolster the development of related industries and will create many jobs,” the governor said.

He pointed out that the Primorye authorities plan to support the Sollers-Far East plant, including in the search for new production facilities, if necessary.