Kaluga Region: Industrial Output Stabilizes Amid Automotive Slowdown

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At the week’s start, regional authorities reviewed the first half of 2022 for the real sector of the region’s economy. The assessment, prepared by the region’s Ministry of Economic Development and Industry, shows that the automotive segment remains under pressure. A portion of factories, totaling nineteen enterprises, are only partially operating or are completely idle. (Kaluga24.tv)

Deputy Governor Vladimir Popov notes that the root causes are a shortage of component parts and a shrinking market. The region’s current climate has been shaped by sanctions and broader economic restrictions, a situation reported by Kaluga24.tv.

Even with car assembly plants shutting down, the overall industrial output of the region declined by just over five percent. This resilience is credited to stronger production in machinery and equipment, metal products, pharmaceuticals, and textiles. The wood processing sector also shows growth in demand and output, contributing to the regional industrial mix.

Since mid-April, the number of inactive companies has eased. Back then, thirty-three enterprises were idle and more than seven thousand workers were affected. The deputy governor did not specify the current count of workers who are temporarily inactive or whose assignments have been scaled back.

Historically, Kaluga’s auto manufacturing footprint has included major assembly facilities such as Volkswagen Group Rus, PSMA Rus (the Peugeot, Citroën, Mitsubishi joint venture), and Volvo Trucks, which shaped regional industrial dynamics and employment (Kaluga24.tv).

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