A delegation from the Chinese province of Jilin, which visited Primorsky Territory, invited Russian officials to consider the construction of FAW plant in the region. In their opinion, the joint assembly enterprise will reduce the cost of Chinese cars due to import duties, which, according to experts from China, are an obstacle to the promotion of the products of the FAW plant, located in the Jilin province bordering Russia, in the Primorye car market.
A joint China-Russia project for production of trucks and special machinery under the FAW brand was launched in the city of Artyom of the Primorye Territory. This was reported by the press-office of the Ministry for Development of Russian Far East.
According to the agency, by the end of this year the first lot of machinery with load capacity up to 30 tons will be ready for sale. Two of the 16 dump trucks already produced were purchases by the resident of the Free Port of Vladivostok, Poltavsky Razrez LLC.
In 2018. the Chinese First Automotive Group Works (FAW) Corporation can launch its second model at the plant in Kaliningrad, as Vladimir Scherbakov, the founder of the Avtotor Company, told the reporters.
“We talk about two models. One model will be produced throughout the current year (Besturn X80, launched in late April), the second one may be started early next year. It belongs to the same series and doesn’t compete with any domestic models”, he said.
Autotor, a Russian automobile holding, starts production of passenger cars of the Chinese First Automotive Group Works (FAW) Corporation. The plan of preparations for production launch was signed today in Kaliningrad; the ceremony included the presentation of a Besturn X80 car manufactured by Avtotor as part of a pilot lot.
According to the Far East Development Corporation, Russian-Chinese Production Company Yubo-Sumotori will manufacture Chinese FAW trucks in Primorsky Territory. Total investment at Stage 1 of the project will account for RUB 28 mln, 52 news jobs are expected to be created.
Autotor of Kaliningrad has produced a batch of passenger cars for FAW (China) including the ones to participate in Moscow Auto Show 2016 to begin on 25 August. Two persons familiar with partner companies' executives told Vedomosti about it. Autotor has assembled several experimental samples of FAW Besturn X80 and FAW D60 crossovers to be presented at the company area during the auto show, FAW representative has confirmed. Now, the auto concern, according to it, is negotiating further assembly of the models at Autotor. It has not disclosed any potential production volumes citing the start of the negotiations.
Sumotori Group (specializing in trading and maintaining light and commercial motorcars) and First Automotive Works (FAW, China) will arrange production of trucks of the Chinese brand in Primorie, as the Territory Administration announced on Wednesday. The agreement to that effect is scheduled for execution at the second Eastern Economic Forum to be held in September.
"The development will include three stages. The first stage has started already. Two months ago a JV was established, and the first motorcars are to be in Vladivostok as early as September. The second stage that we are to start early next year includes separate deliveries of truck chassis and superstructures, says Vitaly Verkeenko, Sumotori Group CEO (quoted by Primorie Territory Administration in its statement). The third stage, according to him, includes going increasingly local, assembling major automotive units and establishing a new plant.
According to Van Zhejiang, FAW Chief Import and Export Officer (quoted by the Territory Administration), the Company intends to take all reasonable effort to make the project a success: "Russia is our reliable strategic market".
First Automotive Works
Company's website: www.faw.com
Contact: Xianping Xu, President, Bod Chairperson
First Automobile Works (FAW) (Automotive Works No. 1) is a Chinese state-owned automotive manufacturing company. Now FAW is producing motorcars of 6 classes including light, medium and heavy trucks, SUVs, passenger cars, buses and compact cars.
In terms of motorcar production, FAW ranks the second in China after Shanghai Automotive Industry Corporation (SAIC).