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Moscow plant to produce auto parts for Chinese crossovers — authorities

In September 2020, the Industry and Trade Ministry signed a special investment contract with Haval Motor Manufacturing Rus, the Russian subsidiary of the Chinese automaker Great Wall

MOSCOW, February 13. /TASS/. Alfa Automotive Technologies (AAT), a Moscow-based auto component manufacturer, will annually produce up to 6.5 million body parts for Haval F7 and Haval Jolion crossovers.

This was announced in the press service of the Moscow city department for economic policy and property and land relations.

As Vladimir Yefimov, deputy mayor of the capital for economic policy and property and land relations, said at the press conference, AAT has signed a relevant agreement with Tula-based plant Haval Motor Manufacturing Rus.

"Thanks to this agreement, Alfa Automotive Technologies will become the leading partner of the Tula-based plant for the production of body components in Russia," Yefimov said.

"Under the terms of the agreement, the enterprise will produce 106 different body components for popular Chinese crossovers. The annual production volume will be between 5 million to 6.5 million parts. As a result, the share of domestically produced components in the assembly of these cars in the Tula region will exceed 50% in 2023," he said.

As Vladislav Ovchinsky, head of the Moscow Department of Investment and Industrial Policy, noted, the plant will sit on a territory covering 36,600 square meters.

To build the facility, Moscow city authorities leased a 3.25-hectare land plot to a company in the Biryulyovo Zapadnoye district, south of Moscow, as part of a large-scale investment project. The volume of investments in the construction of the facility exceeded 2.9 billion rubles ($39.3 mln).

As AAT CEO Zorigto Sakhanov noted, the local production of auto components for Haval F7 and Haval Jolion crossovers is a strategic step in promoting Haval Motor Manufacturing Rus products on the markets of Russia and neighboring countries.

"The agreement with the Chinese manufacturer confirms the engineering capabilities of our company and the undeniable quality of products. Thus, the company makes a feasible contribution to the development of local production, import substitution and technological sovereignty on the domestic automotive industry," he stressed.

In September 2020, the Industry and Trade Ministry signed a special investment contract with Haval Motor Manufacturing Rus, the Russian subsidiary of the Chinese automaker Great Wall. The volume of the company's investments in the establishment of local production will amount to 42.4 billion rubles ($576 mln). That will involve the launch of local production of key automotive components: engine, gearbox, electronic components and vehicle control systems. The enterprise will provide production and assembly of engines for more than 90% of Haval vehicles in Russia.