The mayor of St. Petersburg, Russia, Valentina Matvienko, said Monday in New York that her city is talking with major automakers, including Nissan Motor Co., to encourage them to locate factories there, confirming a recent Interfax report.

Citing a source close to the talks between Nissan and the city, the Russian news agency said earlier in the day that Nissan had selected a 100-hectare site outside St. Petersburg for an auto assembly plant.

Matvienko said her city expects two major automakers, including a Japanese one, to set up operations in the city soon, but said negotiations are continuing and no final decision has been reached.

A Nissan official in Russia told Kyodo News earlier the company was studying the Russian market but nothing concrete has been decided on whether to build a factory in the country.

If Nissan goes ahead, it will be the second Japanese automaker, after Toyota Motor Corp., to have a factory in Russia. Toyota is building a factory in St. Petersburg with production scheduled to begin in late 2007.

Matvienko said she is in talks with six Japanese companies to get them to set up auto parts plants in the city.

News source: search.japantimes.co.jp
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