Magna Steyr Plans Building a Plant in St. Petersburg

19. Juni 2006, 00:00

Inspired, perhaps, by such world leaders as Nissan and General Motors (GM), a big maker of spares, Magna...

Inspired, perhaps, by such world leaders as Nissan and General Motors (GM), a big maker of spares, Magna Steyr (MS) of Austria is arriving in St. Petersburg. MS is willing to construct its own plant close to Shushary industrial district of the city and produce parts for cars of Nissan and GM there. The budget is around USD 50 million, i.e. a foreign investor may count on getting some tax benefits.

"Magna has filed an application to the city’s administration for an area of around 50 hectares,” said Maxim Sokolov, who heads St. Petersburg Committee for Strategic Investments and Projects. The construction is due to start in 2007.

According to Sokolov, MS pledges to funnel USD 50 million, so it may hope for receiving local tax benefits. The property tax, in particular, could be trimmed by 50 per cent for three years and the profit tax transferred to municipal budget curtailed by 4 per cent.

In Shushary, MS will make plastic parts for the skin of cabins, bodies and transmission to be used to assembly cars of Nissan and GM, which are building plants in St. Petersburg now.

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