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Avtovaz closes deal to acquire former Nissan plant in St. Petersburg

In December, Avtovaz announced the beginning of implementation of the project on production of cars at the former Nissan plant in St. Petersburg

MOSCOW, February 7. /TASS/. Avtovaz has announced the closure of the deal to acquire the former Nissan plant in St. Petersburg (Nissan Manufacturing RUS LLC) that passed into Russia’s ownership earlier, for 1 euro. Relevant documents were signed by Avtovaz President Maksim Sokolov and CEO of FSUE NAMI (the State Research Center of the Russian Federation) Fyodor Nazarov.

"As part of the agreements, Avtovaz JSC acquired a 99% share in the authorized capital of Nissan Manufacturing RUS LLC at a 1 Euro price with payment in ruble equivalent at exchange rate of the purchasing date. The deal will retain a call-option for the Nissan company to repurchase former assets in Russia within 6 years if in the future a corresponding decision is made and approved by the Government of Russia," the Russian auto producer said in a statement on Tuesday.

Earlier, FSUE NAMI, which operates under the authority of Russia’s Industry and Trade Ministry, acquired all of Nissan’s Russian assets. In particular, the transactions included the production and research facilities of the company in St. Petersburg, as well as its sales and marketing center in Moscow.

In December, Avtovaz announced the beginning of implementation of the project on production of cars at the former Nissan plant in St. Petersburg. The company plans to commission the production in the second half of this year and produce up to 10,000 cars by yearend.

"These will be new LADA brand models of the C and D segments. Production output this year may reach up to 10K units. High professional competencies of our team may further ensure the increase of production output up to almost any values if there is demand in the Russian market. In 2024-2027 we will localize these cars with the key task to use to a greater extend capabilities of more than 30 regional component suppliers," Sokolov was quoted as saying.

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