Russian Haval plant intends to boost production localization to 80% over 6 years
TULA. Aug 19 (Interfax) - The Haval automobile plant (a brand of China's Great Wall Motor) in the Tula region plans to localize more than 80% of production in Russia within six years, the press service for the regional government said in a statement after a working visit by Industry and Trade Minister Denis Manturov to the region on Friday.
In the course of the visit, the minister visited the Haval plant, which is located in the Uzlovaya industrial park.
"Over the next 6 years, the company plans to reach a localization level of more than 80% for cars produced at the Tula site. The company's plans fully correspond to the objectives of providing the Russian market with cars with a high level of localization, outlined in the draft strategy of automotive industry development through 2035 developed by the Russian Ministry of Industry and Trade," the statement reads.
The full cycle automobile production investment project will ensure creation of 4,000 jobs, the press service said. To date, almost 2,000 jobs have been created.
The plant complex includes a workshop for stamping, welding, painting, assembly and production of components. Last year the plant was modernized: new equipment was installed and software for welding and painting as well as for checking and testing car functions was updated.
The plant currently produces the entire range of Haval models represented in Russia.
As reported, a plant for the production of Haval car engines is being built adjacent to the car factory. Construction work is due to be completed by late 2022. It is envisaged that the factory will provide production and assembly of engines for more than 90% of Haval cars in Russia.
Plans to create a research and development center have also been announced.
In late September 2020, the Industry and Trade Ministry signed a special investment contract (SPIC) with Haval Motor Manufacturing Rus LLC.
The Ministry of Industry and Trade said that the automaker has made serious commitments to localize key components: the engine, gearbox, as well as the car's electronic units and control systems. "The cumulative score of commitments to localize technology within the framework of the SPIC is more than 7,000 points, being the highest in the industry. Investments [under the SPIC] will amount to 42.4 billion rubles", the ministry said.
Russia's full-cycle Haval factory began operations in June 2019. Investments in the first phase of the plant amounted to more than $500 million.
The plant was the first overseas full-cycle production facility for the Chinese brand. At present five models are produced here: the F7 and F7x crossovers, the H9 frame SUV, and the Dargo and Jolion crossovers.
The plant's production capacity at the first stage is 80,000 cars per year, while planned production capacity is 150,000 cars per year.
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