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Dutch exhaust systems and towbars manufacturer Bosal has bought a huge 244,000 m2 site at Kaluga, 180 km south-west of Moscow, and intends to build up an manufacturing plant there in stages to serve the Russian market.

Volkswagen and Volvo have already committed themselves to the same location, but Bosal is one of the first component companies to choose to locate in Kaluga.

The company plans a 153,000 m2 factory, with the first 28,000 m2 ready by the end of 2008. It will focus production of exhaust systems and towbars for OEMs and the aftermarket in Russia and central and eastern Europe. Until the new plant comes on stream, Bosal will lease premises to supply Russian-made Logans.

Later plans involve expansion to include jacks, catalytic converters, hot alloyed strip castings and foil products. Bosal says the eventually more than 1,000 people will work at the Kaluga site.

Bosal intends the location to be the hub of its logistics and distribution network in Russia and it will make its distribution facilities available to other suppliers who locate in Kaluga, it says.

Bosal opened its first Russian factory at Novoorsk last year. It makes towbars.