Ministry of Industry and Trade of the Russian Federation signed a SPIC with China's Great Wall

Ministry of Industry and Trade of the Russian Federation signed a SPIC with China's Great Wall

Ministry of Industry and Trade of the Russian Federation signed a SPIC with China's Great Wall

The Ministry of Industry and Trade of the Russian Federation signed the first special investment contract (SPIC) with a Chinese car manufacturer – a subsidiary of the Chinese carmaker Great Wall (Hawail Motor Manufacturing Rus LLC), which produces Haval SUVs at a car plant in the Tula Region.

In August 2019, the updated SPIC 2.0 came into force. At the same time, a number of projects, even before its approval, received the approval of the interdepartmental commission, not having time to complete the technical procedure for signing special investment contracts under more favorable, old conditions. This situation arose, in particular, with the Haval SPIC in the Russian Federation. In July, the State Duma passed a law that allowed Great Wall to sign an approved SPIC on the old terms.

“The high level of localization increases the competitiveness of the Chinese manufacturer in the Russian market. The implementation of the SPIC guarantees the long-term development of the company in Russia in the field of localization of key components, assemblies and systems,” the press service of the Ministry of Industry and Trade quotes the head of the department Denis Manturov.

The department notes that the automaker has undertaken serious obligations to localize key components: the engine, gearbox, electronic units and vehicle control systems. “The aggregate score of commitments to master technologies within the framework of the SPIC is over 7 thousand points, being the highest in the industry. Investments (within the framework of the SPIC – IF) will amount to 42.4 billion rubles,” the Ministry of Industry and Trade emphasizes.

In turn, the Governor of the Tula Region Alexei Dyumin noted that the regional authorities welcome the decision of the Great Wall management to implement the second phase of the project. “I am sure that Haval cars have a great future not only in the Russian market, but also in the CIS and Europe. The government of the Tula region will continue to create all the necessary conditions for this project to be successfully implemented,” said the head of the region, quoted in the message of the Ministry of Industry and Trade. According to Zhang Junxue, President of Haval Russia, the company will continue to invest in Russian production.

The Russian full-cycle Haval plant began work in June 2019 on the territory of the Uzlovaya industrial park in the Tula region. Now four models of the brand are produced there: the F7 and F7x crossovers, as well as the H5 and H9 frame SUVs.

The production capacity of the plant at the first stage is 80 thousand units per year, the planned production capacity is 150 thousand units per year. The next stage in the localization of Haval in Russia will be the launch of an engine manufacturing plant. The company has completed its design and construction is scheduled to be completed by the end of 2022.

It is planned that the plant will provide production and assembly of engines for more than 90% of Haval vehicles in Russia. An industrial complex with an area of 10 thousand sq. m will be located on the territory of the existing Haval plant in the Tula region. It will employ 300 employees, according to a press release from the Ministry of Industry and Trade.

Leave a Reply

Your email address will not be published. Required fields are marked *