Sumotori Group forms JV with China's FAW to assemble trucks in Primorye
VLADIVOSTOK. Aug 17 (Interfax) - Sumotori Group has formed a joint venture with China's First Automobile Works (FAW) to assemble FAW trucks in Primorye, and plans to localize production in future.
Sumotori and FAW will sign an agreement at the second Eastern Economic Forum in Vladivostok at the beginning of September, the Primorye regional administration's press service said.
Sumotori head Vitaly Verkeyenko said cooperation with FAW began in 2015.
"Development will go in three stages. The first has already begun - two months ago a joint venture was formed and the first [FAW] automobiles will already arrive in Vladivostok in September of this year. The second stage, which we will begin at the start of next year, is the delivery of chassis and upper section separately for trucks. Automobiles with the note 'Made in Primorye' in the manufacturer's certificate will be assembled on the basis of the joint venture in Artyom under the license of the Sumotori manufacturing plant. There is already a production base, which we will completely modernize with our Chinese partners. The third stage is deeper localization of production and assembly of major automobile components. There are plans to build a new plant," Verkeyenko was quoted as saying.
The joint venture plans to apply for status as a resident of the Free Port of Vladivostok.
At the first and second stages, the trucks will be sold primarily in the Far East, and at the third stage there are plans to expand sales to all of Russia.