Mexico's Alfa says to build new autoparts plant for VW in Russia
MEXICO CITY, July 18 (Reuters) - Mexican conglomerate Alfa said on Thursday its autoparts unit Nemak plans to build a new plant to supply German carmaker Volkswagen in Russia, representing a $80 million investment.
The plant, which should begin operation in 2015, will manufacture cylinder heads and engine blocks for a new high-technology motor for Volkswagen in Russia, according to a statement.
Russian law requires auto manufacturers in the country to use mostly locally produced parts, the statement said.
Monterrey-based Alfa, which also groups phone services and petrochemicals companies, earlier this week reported a sharply lower second-quarter profit hurt by charges at its petrochemical unit.
Alfa shares were down 0.37 percent at 32.53 pesos in morning trading on Thursday,