BAI Group Establishes a JV in Russia
2011-07-25 Source：www.chinabuses.org
www.chinabuses.org:Beijing Automobile Works Co.(hereinafter referred to as "Beijing Auto"), which is the subsidiary of China's fifth largest auto group Beijing Automotive Holdings Limited (hereinafter referred to as "BAI Group"), and Beijing Automotive International Trading Co., Ltd (hereinafter referred to as "Beiqi International Trade" ) announced today in Ulyanovsk, Russia that they would establish a joint automobile manufacturer BAW Ross Automobile Co., Ltd. with BMC,the subsidiary of AMS Group.The joint venture will conduct the assembly, manufacturing and sales of commercial vehicles in Russia market. BAI Group is the first automotive company that have established joint venture in Russia since the economic crisis.
The total investment of the joint venture is about $ 176 million, registered capital of that is $ 20 million. The share holding for Beijing Automotive Group and AMS Group is 50/50, in which BAI Group holds 42%,while Beiqi International Trade only 8%.
The planned annual production capacity of the joint venture is 60,000 commercial vehicles. In the first phase from 2012 to 2015, the annual output will reach 20,000 units, all in CKD method. The products include light trucks,medium and heavy trucks, all of which would be branded with "BAW", and will be sold in Russia.
The cooperation relationship of BAI Group with AMS Group can date back to 2003, initially from the sale of auto parts and accessories ,then to the KD assembling for the light trucks.Up to now,BAI Group has sold nearly 10,000 units of light trucks to Russian.
Beiqi Foton, a subsidiary of BAI Group has already signed a cooperation memorandum with Moscow city government before. The establishment of this joint venture marks the new stage that BAI Group would step into, with comprehensive in-depth development outlook in Russia automobile industry.
"Beijing Automotive Group and AMS Group have a long-term strategic partnership. BAI Group will dedicate itself to the creation of cooperative opportunity with the greatest sincerity, best product, and highest efficiency .After the joint venture put into successful operation, BAI Group is willing to further expand the cooperation scope and strengthen the cooperation to offer Russian market more products with AMS Group, such as: SUV, wagon, car and etc.. We are striving to provide better services and make contribution to the local economic development "said Xu Yihe, presidet of BAI Group at the signing ceremony.
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