Daimler has opened the Mercedes-Benz passenger car factory in Moscow Region

Daimler has opened the Mercedes-Benz passenger car factory in Moscow Region


 

Interfax.- German car manufacturer Daimler has opened a Mercedes-Benz passenger car factory in Moscow Region on Wednesday, as reported by an Interfax correspondent from the opening ceremony.

The president of Russian Federation Vladimir Putin, the chairman of the board of Daimler: Dieter Zetsche, the vice-president of Russia: Dmitry Kozak, the minister of industry and commerce Denis Manturov and the governor of Moscow Region: Andrei Vorobyev have taken part in the ceremony.

The construction of the Mercedes-Benz car factory has started in Yesipovo Industrial Park in June 2018, following the signature of a Special Investment Contract (SPIC) for the duration of 9 years, amongst the government of Russian Federation, Mercedes Benz Rus, the administration of Moscow Region and the rural settlement of Peshkovsky Solnechnogorsk district of Moscow region, in addition to Daimler, Kamaz and Daimler Kamaz Rus and Mercedes Benz Manufacturing Rus.

In November 2018, the general director of Mercedes-Benz Manufacturing Rus: Axel Benze had revealed plans to start car assembly at the factory by the end of the first quarter of 2019, just before the opening ceremony in April. During the time, commissioning works were being carried out in the workshops of the plant. Recruitment of a total number of approximately 1000 workers were planned for the factory until the end of 2018.

According to the signed SPIC, Daimler will invest more than €250 million in the production site – minimum 15 billion rubles. The duration of the SPIC will be 9 years and the annual production capacity 25 – 30,000 vehicles.

Tax privileges will be provided for the enterprise under the terms of the SPIC, on profit tax in particular, a reduction in the tax rate for 10 years from the moment of receiving the first profit. The tax rate will be 0% until the end of 2025, 10% between 2026-2028 and 13.5% from 2029 onwards. At the same time, the enterprise may be granted a concession in the form of a tax rate reduction by 4.5 percentage points from the start date of production. In addition, the property created within the scope of the project will be exempt from tax for 10 years.

The “Moscovia” factory will be integrated into a single global network, covering all production sites of the Mercedes-Benz Cars division.

Full-cycle production will be made in the factory. E-class sedans will be manufactured in the plant at the first stage, to be gradually followed by GLE, GLC and GLS SUVs.