French auto parts supplier Plastic Omnium said Tuesday that it is planning to build a factory in St. Petersburg, its third in Russia, to meet growing demand.
The factory will be built next year by its 51-percent-owned joint venture, Inergy, launched in April with fuel systems manufacturer DSK.
Inergy, which makes fuel systems for Renault Dacia and supplies AvtoVAZ, recently won contracts with Ford, General Motors and Nissan.
By 2015, Inergy expects to make more than 1 million fuel tanks in Russia, giving it 40 percent of the local market.
In India, where it co-owns a bumpers factory in Pune that supplies GM, Mahindra & Mahindra and Volkswagen, Plastic Omnium said it had gained full control of the joint venture after buying the 40 percent held by Varroc.