South Korean confectionery producer Orion Corporation plans to construct a factory in the Russian city of Tver estimated at 2.7 billion rubles ($95.2 million), a local administration spokesman said.

The construction agreement was signed between Tver Region Governor Dmitry Zelenin and the South Korean company's representatives, the spokesman said.

The new plant will create jobs for some 1,300 people.

"The citizens of Tver and the Tver Region will find stable work and fitting salaries," the spokesman said, adding that the government had pledged to provide legal and administrative support for the investors.

The Orion Corporation has a history of working with the authorities in Tver, where a subsidiary opened a branch in 2006 at an estimated cost of $40 million.