Mainland auto maker to launch Russia plant
Updated: 2006-03-29 08:05
By Lillian Liu(HK Edition)
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Great Wall Motor Co Ltd, the mainland's leading pick-up truck maker, said it would set up a factory in Russia this year, with the hope of becoming a leading player in the former Soviet Union .
Great Wall Motor will invest US$70 million in the new factory by the second half of 2006. The expansion plan was inspired by increasing demand from buyers in Russia, which consumes 32 per cent of the motor makers' exports in 2005.
Planning to sell a total of 70,000 units this year, of which 30,000 are for exports, Great Wall Motor hopes the Russia-based factory, which is primarily engaged in the production of pick-up trucks, will achieve an annual output of 50,000 units within three years.
"Russia is our biggest overseas market. More than one-third of our exported vehicles are sold in the country. Setting a factory there would help us reduce the delivery and tariff costs," said Wei Jianjun, chairman of the Great Wall Motor at a press conference yesterday.
In October 2005, Great Wall Motor established a branch office in Moscow, aimed at facilitating export businesses, relevant sales and after-sales services in the region.
"Russia's harsh climate demands high quality vehicles that could withstand both severe weather condition and pot-holed roads. Our company could not only meet the needs but also provide customers best prices and good after-sale services, which is our key to success in the market," said Wei.
In the year 2005, the auto maker's export value surged by more than 378 per cent year-on-year with export volume reaching a record high increasing by over 298 per cent.
Based in Baoding of North China's Henan Province, Great Wall Motor sold a total of 57,198 vehicles last year, of which, 14,326 units were exported overseas.
Iraq and Ukraine are also among its largest exporting markets, accounting for 16 per cent and 8 per cent exports respectively.
(HK Edition 03/29/2006 page3)