Beijing Automotive Group Co., Ltd. Establishesa Joint Venture with AMS Auto in Russia
By Baic Foton, PRNEMonday, July 18, 2011
ULYANOVSK, Russia, July 19, 2011 -
- The JV Will Assemble an
Estimated 60,000 Units per Year
Beijing Automotive Group Co., Ltd. (BAIC Group), the fifth
largest automotive group in China, today announced the
establishment of a joint venture automotive company between two
companies operating under BAIC Group, namely the Beijing Automotive
Works Co., Ltd (BAW) and BAIC International Corporation, and BAW
Motor Corporation (BMC) operating under AMS Auto of Ulyanovsk,
Russia. The joint venture is called BAW-RUS Automotive Co., Ltd.
Its main business will be commercial vehicle assembly,
manufacturing, and sales. BAIC Group is the first major Chinese
automotive group to establish a joint venture in Russia after the
economic crisis.
(Photo:
The total investment for the joint venture is about USD
176 million with a registered capital of USD 20 million. BAW, BAIC
International Corporation and BMC will hold respectively 42%, 8%
and 50% of the shares.
The JV will gradually reach an assembly line totaling an
estimated 60,000 units per year. The yearly capacity will reach
20,000 units through KD (knockdown kit) in the first phase from
2012 to 2015. The products, covering light, medium, and heavy cargo
trucks, will all be sold under the BAW brand in Russia.
Since beginning cooperation with AMS in 2003, BAIC Group has
sold nearly 10,000 units of light trucks in Russia as it evolved
from selling auto parts to finally assembling light trucks through
KD over the years.
After China and India, Russia is the fastest growing auto market
in the world and is expected to become the largest new auto market
in Europe this year. Of the top ten international auto brands which
sell cars and light commercial vehicles, nine of them have built
assembly plants in Russia. BAIC Group fully utilizes supportive
policies from the Russian government and hopes to decrease
production costs through step by step, localized production in
order to be more competitive.
Mr. Heyi XU, Chairman of BAIC Group, said: “The cooperation
between BAIC Group and AMS is a long-term, strategic decision. BAIC
Group will create a positive, cooperative environment with good
faith, while assembling the best products, and do so in the most
efficient to provide the Russian market with quality vehicles. BAIC
Group looks forward to expanding our cooperation with AMS in the
future to supply a wider range of vehicles to Russia.”
Last year, FOTON, a truck and bus brand under BAIC Group, signed
a memorandum of cooperation with the Moscow government. The joint
venture contract signed today by BAIC Group and AMS shows that BAIC
Group had started a comprehensive, in-depth development phase
within Russia.
About BAIC Group
Beijing Automotive Group Co., Ltd. (BAIC Group) was established
in 1958 with its head office located in Beijing. With RMB 79.7
billion in assets and 65,000 employees, BAIC Group is among the top
five Chinese automobile manufactures. In 2010, BAIC Group sold a
total of 1.501 million vehicles with sales revenue of 158.4 billion
RMB. BAIC Group owns four finished automobile manufacturing
companies (BAIC MOTOR Corporation Ltd., Beiqi Foton Motor Co. Ltd.,
Beijing Hyundai Motor Company and Beijing Benz Automotive Co. Ltd.)
and 17 subsidiaries involved in automobile parts, research and
development of automobiles, clean energy vehicle, service trade and
talent training in automobile, etc.
Mr. Simon Vericel, Hill & Knowlton (China), Direct line: +86-10-5861 7570, Email: simon.vericel at hillandknowlton.com.cn
Tags: Baic Foton, China, July 19, Russia, Ulyanovsk
