SKF said it would invest 235 million kronor in the new plant, which is expected to create employment for around 150 people.
Although the group has not yet decided on an exact location for the site, it is expected to be in the Moscow area.
“This new investment will further strengthen SKF’s position as world leader in the railway industry,” SKF said in a statement.
Construction will start in September 2008, with the new factory expected to be operational by April 2010.
“SKF has a leading position in supplying taper bearing units to the railway industry all over the world and intends to get an important part of the Russian market,” said SKF.