Haval has started the construction of an engine factory in Russia

Haval has started the construction of an engine factory in Russia


 

RusAutoNewsCom.- As reported by the Tula region administration, Great Wall Motor company has started the construction of an engine factory for Haval automobiles in Russia. A ceremony was held at Uzlovaya Industrial Park on 25 November, marking the launch of the construction of the factory.

Within the framework of the SPIC signed in September, GWM plans to invest 42.4 billion rubles in the construction of the car plant, which will carry out localised production concerning the main components, including engines, transmissions, electronic control modules and vehicle control systems. The new plant will have an annual production capacity of 80,000 engines and become the first overseas factory of Great Wall, making the full-cycle production of automobiles. The construction will be completed and the operations will commence at the plant, built on a 10,000 m2 area, in 2022 according to plans. More than 90% of the engines for Haval vehicles in Russia will be assembled at the enterprise. The new project will create 300 jobs.

The production capacity of the plant has risen on a continuous basis for the duration of 1.5 years following the launch of production. Models such as: Haval F7, Haval F7x and Haval H9 have been rolling off the conveyor of the factory since the start of production in June 2019. According to GWM data, the sales of Haval automobiles have increased by 75% in Russia in a year. 13,300 Haval vehicles have been sold in Russia within the first ten months of the 2020.

As stated by the senior management of Haval company, the capacity will be adjusted in accordance with the market dynamics in the future, in order to satisfy the growing demand for Haval vehicles, which is the anchor resident of Uzlovaya. The staff number already exceeds 1400 people in the enterprise. The new project means additional 300 workplaces and an approximate amount of 4 billion rubles investment. The company aims to develop further in the Tula region. There are plans for deeper localisation in components production. “We have established ourselves in the aim of long-term cooperation” – as told by the governor of the Tula region Alexei Dyumin at the ceremony.

The participants were greeted by the chairman of the board of directors of Great Wall Motor Jack Wei, in a video conferencing mode. “The success in Russia has a strategic meaning for the globalisation of the company. The sales of Haval have been rising since the start of production in Tula region, proving the growth of the recognition of Great Wall Motor in the eyes of the Russian clients” – Wei emphasised. The exhibited Haval automobile range was examined by the First Deputy Governor of the Tula region: Vyacheslav Fedorishev and the President of Haval in Russia: Zhang Junxue.

As stated by Zhang Junxue, 16,300 vehicles have rolled off the conveyor of the plant in 18 months and the number will hit the 20,000 mark at the end of the year.

Haval has kept an upward trend despite the pandemic, in contrast with the overall shrinkage in the market and the share of the company has doubled in comparison with the year before. The support provided by the government of Tula region, the regional Corporation of Development and the Russian Ministry of Industry and Commerce is an undeniable factor behind the successful performance of the enterprise. Mr. Zhang has expressed his sincere gratitude for the support from all parties: “The signature of the SPIC has strengthened the investment credibility of Great Wall Motor in the Russian market. I’m confident in the fact that thanks to the devoted strategy on the deepening of localisation and the quality of the product, which is adapted to the requirements of the market, the status of Great Wall will without a doubt change from newcomer to the market leader”.