Itaco Precast S.r.l. of Italy will build a factory for the manufacture of precast concrete structures in Russia’s southern Rostov region, the local governor’s press service reported on Wednesday.
Governor Vasily Golubev and Itaco President Michele Angelo Randolphi signed a memorandum on cooperation between the regional government and the company in Rostov-on-Don on Tuesday.
Some 4 bln rubles ($120.5 million) will be invested in the plant. Its design capacity is estimated at 400,000 square meters of housing per year.
“This project will help us create a more powerful construction industry infrastructure and implement our housing construction program in the region,” Golubev said after the signing ceremony, adding that the regional government is keen to have better-quality housing which conforms to European standards.
The project will also create 1,200 new jobs with salaries that cannot, according to the agreement, be lower than the average pay for the region.
Randolphi asked the governor to help expedite the paperwork, promising that the factory will take just over a year to build. He said the project would be implemented in two stages: first, the factory would be built, and then the company would start building new housing.
The Rostov Region ranks sixth in Russia and second in the Southern federal district in terms of new housing built. In 2011, 1.88 million square meters of housing were built in the region.