Chinese automobile manufacturer Great Wall Motors (GWM) has signed an agreement with the Russian Tula Oblast Government for construction of an automobile manufacturing facility with investment of CNY3.2bn ($513.44m).
The company will build a solely-owned vehicle plant in Uzlovaya Industrial Zone, Tula Oblast in Russia in two phases.
GWM will invest CNY2.1bn ($336.94m) in the first phase construction, which will include the thorough completion of manufacturing base for the 2,160,000m2 facility. the remaining amount will be added to the base during later stages.
Following the completion, the new facility will have an estimated production capacity of 50,000 units per year and will represent first whole-process finished GWM vehicle overseas plant.
The plant will be the first finished vehicle plant covering four manufacturing processes among China's auto manufacturers in Russia
GWM said that the overall strategic cooperation partnership between China and Russia nowadays provides a good cooperative environment for the company and the Tula Oblast Government.
The project is expected to help the company in using the local manufacturing capability to reduce cost as well as decrease the competitive pressure.
