Lifan will start the construction of Lipetsk car factory in Spring 2015

Lifan will start the construction of Lipetsk car factory in Spring 2015

Autostat – Chinese manufacturer Lifan will start the construction of the automobile factory it’s preparing to establish in Lipetsk region in Spring 2015. Approximately $300 million will be invested in the factory. As one may remember, the agreement proposing the establishment of an automobile factory by Lifan and the regional administration was signed in October 2014.

The factory, which will be built in Lipetsk Special Economic Zone (SEZ), will have an annual production capacity of 60,000 automobiles at the first stage. According to the predictions, approximately 1500 workers and experts will be employed at the facility. The factory, which will include welding and paint shops, will manufacture all models.

The company currently manufactures X60, Cebrium sedan, Solano, Celliya and Smily hatchback models at Derways factory, established in Cherkessk. Lifan Motors Rus chairman: Sun Tzetzuyun states that the cooperation with Derways will continue until 2018 at least. The localisation rate of Derways factory is 15%.

The initial minimum localisation rate of the Lipetsk factory has been declared as 10%. It has been stated that this rate will reach minimum 30% in 2021, when the factory starts operating in full capacity, with the inclusion of the production in Derways.

Chairman Tzetzuyun has stated that the company has made an agreement with Fujang Glass operating in Kaluga, which is also Lifan’s supplier in China, for car glass supplies. The company is negotiating with Cordiant -resident in Russia- and Yokohama for tyre supplies. Seats, discs and car batteries are amongst the components, which Lifan aims to procure in Russia. Engines, pressed components, chassis and other components will come from China. Tzetuyun also revealed plans to establish an engine factory in Russia after 2021. The realisation period of this project depends on market conditions, according to the chairman.