Toyota Motor to close its factory in Russia

MOSCOW (Reuters) -Japan’s Toyota Motor Corp has determined to shut its plant in Russia, Russia’s Ministry of Business and Commerce mentioned in an announcement.

The automaker suspended manufacturing in St Petersburg in March on account of provide chain disruptions and stopped car imports into Russia.

Toyota will make sure the fulfilment of all social obligations, in addition to important extra pay-offs to the workers, the ministry mentioned, and can retain after-sales service of Toyota and Lexus automobiles and keep its vendor community.

Russia’s Kommersant newspaper first reported the plans, citing unnamed sources, earlier on Friday.

The manufacturing facility, which has a capability of 100,000 models a 12 months and produced the Camry and RAV4 fashions, might be preserved and could also be offered sooner or later, Kommersant’s sources mentioned.

The ministry and regional authorities are engaged on potential situations to develop the location, the ministry mentioned.

Toyota didn’t instantly reply to a request for remark.

Many factories in Russia have suspended manufacturing and furloughed staff on account of shortages of high-tech gear and an exodus of Western producers after Moscow despatched armed forces into Ukraine on Feb. 24.

(reporting by Reuters; modifying by Kevin Liffey, Jason Neely)