Great Wall Motors’ Tula factory in Russia starts production, setting Chinese auto brands on a new journey to global markets
TULA, Russia, June 7, 2019 /PRNewswire/ — Great Wall Motors’ Tula factory in Russia, the Chinese automaker’s first wholly-owned full-process manufacturing plant outside its home market, was formally put into production on June 5, 2019. The USD 500 million Tula factory was completed following four years of construction with a designated annual capacity of 150,000 units, 65 per cent of which will be produced locally. At the same time, the Chinese automaker’s first model being sold worldwide, the Haval F7, rolled off production lines and is now available in markets outside of China. This signifies that the automaker has entered a new stage with its global strategy but more importantly sets Chinese auto brands on a new journey to world markets.
The start-up of the Tula factory is of great significance to Great Wall Motors as the automaker accelerates the implementation of its global strategy. With the establishment of the local plant, the automaker is well positioned to effectively produce automobiles that can better meet the needs of the local market. The Tula plant is expected to have a lasting and far-reaching impact on the globalization of the Chinese automobile industry as it can serve as a “turnkey” model for global expansion by other Chinese automakers seeking to expand into international markets.
The largest investment project of the Chinese manufacturing industry in Russia, is expected to generate over 18 billion yuan (approx. USD 2.6 billion) in total output value and over 3 billion yuan in before-tax profit (approx. USD 430 million) while creating nearly 3,000 jobs. The plant is an important step in the Chinese automaker’s efforts to respond to the Chinese government’s “Belt and Road” initiative. More importantly, built on the automaker’s advanced manufacturing technology, quality management and environmental protection measures, the Tula plant is on track to speed up the formation of the local automobile manufacturing industry cluster and the downstream industry chain, promoting the transformation of the local industrial structure. In addition, the plant not only marks a new milestone in the economic and trade exchanges between China and Russia, but also represents a new era for Chinese automobile brands with operations in Russia.