VLADIVOSTOK FREE PORT RESIDENT TO BEGIN PRODUCING CHINESE TRUCKS IN PRIMORSKY TERRITORY
09 December 2016
The investor plans to bring the first vehicles to market in the second quarter of 2017, according to a press release from the Ministry for the Development of the Russian Far East.
Yubo-Sumotori concluded an agreement on the implementation of activities as a resident of Vladivostok Free Port. The company is a joint Russian–Chinese project to build a plant for the production and distribution of FAW-brand Chinese trucks in the Primorsky Territory city of Artyom.
“We regard Russia as a reliable strategic market. The company intends to make every effort to ensure that the project is successful”, noted FAW’s Managing Director for Import and Export Wang Zhijian.
“The project will be implemented in three phases. The first phase has already been completed: this past September, a joint venture carried out the sale of the first batch of FAW trucks. The second phase, which involves the assembly of finished vehicles using chassis and superstructures imported from China, will begin in early 2017. The third phase involves increasing localization, assembling major vehicle components, and creating a new plant”, said Vitaly Verkeenko, President of Sumotori Machinery Group.
It is predicted that the start of the project will see output of up to 2,000 heavy trucks a year. The volume of tax contributions to budgets at all levels over 10 years will be about RUB 867.7 million.