Great Wall Motors Company Limited to Build Solely-Owned Plant in Russia, with Estimated Production Capacity at 150,000 Units/Year
On May 20, Great Wall Motors Company Limited signed the Cooperation Agreement between Great Wall Motors Company Limited andTula Oblast Government on the Building of Automobile Investment Projectwith Russian Tula Oblast Government and Tula Oblast Public-Private PartnershipDevelopment Group. As per this agreement, Great Wall Motors Company Limitedwill invest approximate RMB 3.2 billion to build a solely-owned finishedvehicle plant in Uzlovaya Industrial Zone, Tula Oblast, Russia.
It is reported that this finished vehicle plant will be built in twophases, with the total occupation area at 2,160,000m2. The estimatedinvestment for the 1st phase hits Ruble 12 billion (approximate RMB2.1 billion). After the thorough completion of the manufacturing base, thetotal investment is estimated to hit approximate Ruble 18 billion (approximateRMB 3.2 billion). The planned production capacity will hit 150,000 units peryear after this project is put into production. This is the first finishedvehicle plant covering four manufacturing processes among China’s auto manufacturers in Russia as wellas the first whole-process finished vehicle plant invested by Great Wall MotorsCompany Limited overseas.
The responsible person from Great Wall Motors Company Limited said thatthe overall strategic cooperation partnership between China and Russia nowadaysprovides a good cooperative environment for Great Wall Motors Company Limitedand the Tula Oblast Government. Great Wall Motors Company Limited will strictlyabide by the Russian laws and industry regulations and complete this projectwell to serve the Russian customers and local residents.
The industry experts believe that, confronted with increasingly fiercecompetition in domestic market, the investment of overseas plantbecomes a new approach for proprietary brands to strive for breakthroughs andindependent innovations. The building of the Great Wall Motors Company Limitedplant in Russiafor the realization of local manufacturing can not only reduce the cost andrelieve the competitive pressure, but also establish a good brand image in theworld and form an international competiveness of truly sustainable growth.