China’s SUV producer HAVAL opened its first dealership in Russia’s northwest in St. Petersburg.
HAVAL representatives observed that the plans regarding a car making facility in the Tula region were still “intact, with the land acquired and recruitment underway,” and the plant with a designed capacity of up to 150,000 cars a year was to be completed on time.
“It is not our objective to sell /in Russia/ any cars produced in China,” HAVAL Motor Rus Mikhail Rotkin stressed. “This is why the company hit the market simultaneously with its new models and its construction plans to make the SUV more affordable for Russians.”
Haval Motor Manufacturing Rus (a Russia-based subsidiary of China’s Great Wall Motors) has broken ground for the construction of a car factory in the Uzlovaya district of the Tula region, the Tula Region Development Corporation said.
So far, “the design of the plant has been completed, and the project has been submitted for regulatory compliance review. A permit has been obtained for operations on the land plot, and improvements to the land plot have been done,” Haval Motor Manufaturing Rus General Director Zhang Junxue said at the groundbreaking ceremony offering his assurances of the timely commissioning of the plant.
Great Wall Motors and the government of the Tula region signed the agreement to build the plant in May 2014. To build the plant, the Chinese corporation acquired 216 hectares in the Uzlovaya Industrial Park. Once its first stage is in operation, the plant will be producing 80,000 cars a year, to expand its output to 150,000 by 2020. With projected investment of $500m, the plant will create 2,500 jobs.
Shchekinoazot and Plastik might become suppliers to the Great Wall plant at Uzlovaya. The investment envoy of the government of the Tula Region and General Director of Tula Region Development Corporation Denis Tikhonov spoke about this at the international industrial INNOPROM 2015 exhibition, where he stressed the major opportunities for co-operation between Tula enterprises and Chinese investors.
“Industrial co-operation between our countries has tremendous potential”, Denis Manturov noted. “It is particularly important that the subcommission for industrial co-operation will include working groups for civil aviation and civil aircraft building, ship-building, transport engineering, ferrous and non-ferrous metallurgy, and many others, as this will allow the work to be structured along the most sensitive lines of co-operation in industry”.
In his speech, Denis Tikhonov spoke about the region’s industrial policy priorities, which include engineering and machine-tool building. He noted that, over four years, industrial production in the Tula Region has gone up 50%, including 30% during the first five months of this year.
The investment envoy of the Region’s government focused the attention of the summit’s participants on possibilities for co-operation between Chinese investors and Russian enterprises. As an example of promising industrial co-operation, he gave establishment of an automotive cluster on the territory of the Uzlovaya industrial park in the Tula Region, according to the Region’s investment portal.
“Our Chinese partner, Great Wall, has started building the motor works on the territory of the industrial park. Once the enterprise is started up, this will give Tula producers an opportunity to become suppliers to the future conveyor. These are the Shchekinoazot and Plastik chemical industry enterprises, producers of industrial chemicals and polymers, and the metallurgical company Tulachermet, which is implementing a project for constructing a smelting and rolling complex, including special steels for car production. The task of the regional government is to help the Tula enterprises to put through the necessary modernisation and become quality suppliers to Great Wall. It is important and valuable to us that the Chinese partners are meeting our manufacturers half way and are prepared to provide them with the specifications of the automotive parts and the tactical-technical requirements on the products”, Denis Tikhonov said.
The authorities of the Tula Region are planning to promote clusters in the economy and create an automotive cluster in the region by 2017, the press service of the regional government reports with reference to Denis Tikhonov, CEO of Tula Region Development Corporation. The cluster will be established at the Uzlovaya industrial park, where China’s Great Wall in 2017 will launch an automobile plant comprising press, welding, painting, assembly shops and production of components.
According to Tikhonov, European and Asian manufacturers of car components are interested in the industrial estate in the Tula Region. Interfax learnt from Tula Region Development Corporation that talks are currently underway with Chinese, South Korean, and Japanese, U.S., German and Turkish companies over the creation of facilities to manufacture car components at the Uzlovaya industrial estate. Furthermore, the Tula authorities intend to involve local companies in the project — Tulachermet, Tulachermet-Stal, Shchekinazot, Plastik, and RTI.
The agreement signed by Great Wall, the Tula Region Government and the corporation envisions the production of up to 60% of components for the future Great Wall factory at Uzlovaya. Great Wall began the construction of an automotive factory at the Uzlovaya industrial park in August 2014. The annual capacity of the new factory is projected at 150,000 Haval cars. The facility is expected to be commissioned in 2017 and reach its design capacity in 2020. The new plant will create 2,500 jobs. Investments in the project will total RUB 26 billion.
Chinese private automaker Great Wall Motors (GWM) started the construction of a plant worth 520 million U.S. dollars in Russia's Tula Region, the regional government spokesperson said Monday.
Tula's governor Vladimir Gruzdev said that the regional government plans to purchase Chinese cars made by the GWM.
Speaking at the foundation stone laying ceremony of the GWM plant in Tula's Uzlovaya town, Gruzdev said the localized enterprise would build China-designed cars from scratch, not merely assemble them.
This is the first firm to be located in the Uzlovaya industrial park and it will employ 2,500 workers and has a capacity of making up to 150,000 Haval cars in 2020 after it starts production in 2017.
Great Wall Motor Co Ltd, a manufacturer of pickup trucks in China, is planning to set up a new automobile plant in Russia (Tula) to boost its sales in the country.
The new plant will have an annual output of 150,000 units. With a total investment of RUB 3.2 billion, the new plant will produce three SUV models comprising the H2, H6 and H8. The plant will reach full production by 2020.
Great Wall Motor, a China-based vehicle manufacturer is planning to invest in a plant in Lipetsk in Russia this year, according to a report by Chinese state-owned news agency Xinhua.
Great Wall Motor also plans to build a plant in the Russian city of Ussuriysk.
Currently, Great Wall assembles models for sale in Russia at a plant in Gzhel near Moscow.
Great Wall Motor Company Ltd
Company's website: www.gwm-global.com
T: +86 3122197688
Contact: Mr Feng Ying Wang, Managing Director
Great Wall Motor is involved in the research, design, development, manufacture, distribution and sale of cars, SUVs, pick-up trucks, and automotive-related parts and components.