The company initially expects to produce 200 to 300 trucks a year for the Russian market.
The move is the result of a joint project with Russian partner AFK Sistema. The new facility, located in Zelenograd, just north of the Russian capital, is part of the focus on this country's growing market for modern heavy trucks.
There are currently about 12,000 Volvo trucks on Russian roads. Following a couple of weak years in the wake of the 1998 economic crisis, the market began to recover and last year Volvo delivered 423 trucks.
"An industrial base in Moscow will reinforce our position in Russia. It is important to have a firm local presence in order to grow with the market," said Jorma Halonen, president and CEO of Volvo Trucks.
At the same time as Volvo Trucks establishes a production base in Russia, it is also investing in sales to meet the demand for modern heavy trucks. With the establishment of its own production plant in Russia, Volvo Trucks now has facilities in 15 countries.