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. Last Updated: 07/27/2016

Renault to Increase Production

Renault, the second-biggest French carmaker, says it will raise production capacity at its plant in Moscow in response to increased demand for the Logan model in Russia.

Renault and the city of Moscow will sign a preliminary agreement Friday to expand the Avtoframos plant, the carmaker said in an e-mailed invitation Thursday. The expansion goes beyond a previously announced 25 percent capacity increase.

"Due to the success of the Renault Logan project in Russia, Renault and the Moscow government plan to increase the capacity of the Avtoframos plant," the carmaker said.

The Renault Logan was the second most popular model in Russia last year, after Ford Motor's Focus, with 49,323 cars sold, seven times more than in 2005, according to the Moscow-based Association of European Businesses. Renault was the No. 6 most popular brand in Russia last year, with 72,484 cars sold.

Olga Sergeyeva, a Renault spokeswoman, declined to say how much the Moscow plant's capacity would be increased.

Details of the expansion will be announced Friday, she said, while noting that "tomorrow we will talk about territorial expansion."

The Avtoframos facility, which employs about 2,000 people, can produce as many as 60,000 cars per year. It produced 51,179 cars in 2006. Renault wants to sell more than 100,000 cars in Russia in 2009.

Avtoframos was set up as a 50-50 joint venture between Renault and the Moscow city government in 1998. Renault now owns 94.1 percent of the venture, Sergeyeva said.