Foundry Daily News

Opel plant in Belgium could be moved to Russia

RIA Novosti reported that the Opel plant in the Belgian city of Antwerp is likely to be closed by the carmaker's new owners and production could be moved to Russia. The US car giant General Motors took a long awaited decision in early September to sell Opel to a consortium of auto parts maker Magna and Russia largest bank, Sberbank. The decision was approved by the Opel board and the German government.

The Magna Sberbank consortium will own a 55% stake in Opel on a parity basis and the German carmaker will control 10% with GM retaining 35%. The new owners are set to leave the Opel plants in Germany intact, but plan to close two European production sites, including one in Belgium. According to Trends, the Opel plant in Antwerp is likely to be closed by the end of the year and production could be moved to Russia's car giant AvtoVAZ in the Volga city of Togliatti.

Mr German Gref CEO of Sberbank said in earlier report that Magna and Sberbank had not yet picked an industrial partner for Opel in Russia and did not rule out cooperation with AvtoVAZ which was assured by Prime Minister Mr Vladimir Putin recently that the government would ensure its continued operation as it struggles with the financial crisis.

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