Great Wall Motors Company Limited signed the Cooperation Agreement between Great Wall Motors Company Limited and Tula Oblast Government on the Building of Automobile Investment Project with Russian Tula Oblast Government and Tula Oblast Public-Private Partnership Development Group. As per this agreement, Great Wall Motors Company Limited will invest approximate RMB 3.2 billion to build a solely-owned finished vehicle plant in Uzlovaya Industrial Zone, Tula Oblast, Russia.
It is reported that this finished vehicle plant will be built in two phases, with the total occupation area at 2,160,000m2. The estimated investment for the 1st phase hits Ruble 12 billion (approximate RMB2.1 billion). After the thorough completion of the manufacturing base, the total investment is estimated to hit approximate Ruble 18 billion (approximately RMB 3.2 billion). The planned production capacity will hit 150,000 units per year after this project is put into production. This is the first finished vehicle plant covering four manufacturing processes among China’s auto manufacturers in Russia as well as the first whole-process finished vehicle plant invested by Great Wall Motors Company Limited overseas.
The responsible person from Great Wall Motors Company Limited said that the overall strategic cooperation partnership between China and Russia nowadays provides a good cooperative environment for Great Wall Motors Company Limited and the Tula Oblast Government. Great Wall Motors Company Limited will strictly abide by the Russian laws and industry regulations and complete this project well to serve the Russian customers and local residents.
The industry experts believe that, confronted with increasingly fierce competition in domestic market, the investment of overseas plant becomes a new approach for proprietary brands to strive for breakthroughs and independent innovations. The building of the Great Wall Motors Company Limited plant in Russia for the realization of local manufacturing can not only reduce the cost and relieve the competitive pressure, but also establish a good brand image in the world and form an international competitiveness of truly sustainable growth.
