Overseas accelerates the signing of Russian special investment contract by Great Wall

SMM News: great Wall Motor is speeding up its overseas layout. Recently, the Russian Tula factory of Great Wall Motor officially signed a special investment contract in Russia (hereinafter referred to as "SPIC") with the Ministry of Industry and Trade of the Russian Federation. As the first Chinese car company to sign Russia's SPIC, the signing of the contract means that Great Wall Motor will enjoy the same preferential policies as Russian car companies and obtain a more fair and open market environment.

It is reported that SPIC is a policy of the Russian Federation government to provide incentives to investors, which can provide tax and non-tax concessions to contracted enterprises, and the convenience of state procurement projects, with the aim of stimulating investment in Russian industrial production and supporting the implementation of large-scale industrial projects in Russia.

Under the framework of this agreement, Great Wall Motor is expected to invest a total of 42.4 billion rubles (3.7 billion yuan) to build an automobile factory with deep localization of core components, including engines, transmissions, electronic control modules and vehicle control systems. Dennis Manturov (Denis Manturov), minister of industry and trade of the Russian Federation, said: the high degree of localization will greatly improve the competitiveness of Great Wall Motor in the Russian market, and the implementation of SPIC will ensure the considerable development of Great Wall Motor in the field of localization of Russian key parts.

Zhang Junxue, vice president of Great Wall's Russia project, said that this will further promote the process of localized production of Great Wall in Russia. In the future, Great Wall Motor will fulfill the commitment of parts localization investment to further enhance the local competitiveness of vehicle products.

Great Wall Automobile Russia Tula factory is located in Tula Industrial Park, Tula State, Russia. It is the largest factory construction project invested by Chinese automobile enterprises in overseas markets, covering four major production processes: stamping, welding, painting and final assembly. The project has an investment of 500 million US dollars and lasts for 4 years, with a planned annual production capacity of 150000 vehicles, of which the first phase has a production capacity of 80, 000 vehicles.

Since the first Harvard F7 went offline, the Russian Tula factory has realized the local production of many models, such as Harvard F7, Harvard F7x, Harvard H9 and so on. From January to August 2020, the cumulative sales of the Harvard brand increased by 75% compared with the same period last year, ranking first among Chinese auto brands in Russia for several months in a row. It is reported that in the future, Great Wall's factory in Russia will not only supply local product demand, but also export new cars to Kyrgyzstan, Azerbaijan and other regions.

It is reported that at present, the construction of the second phase of the Great Wall Russian Tula plant is under way, in which the design phase of the localization project of the engine factory has been completed. The factory plans to cover an area of more than 10,000 square meters, and the construction is expected to be completed by the end of 2022. The engines produced by the factory will be carried on more than 90% of Harvard cars. At the same time, the engine factory will also provide more than 300 jobs to promote local employment and economic development in Russia.

Editor's comments:

Accelerating the overseas layout of Chinese brands can not only open the door to greater sales, but also provide more support for brands. At present, the layout of Great Wall Motor in Russia is deepening, and its competitiveness and influence are also expanding, which is of great value for Great Wall Motor to focus on the needs of users around the world, polish the strength of products and improve the level of service.