Inside Line (Moscow) - Beijing Automobile Works (BAW), one of China's leading automakers, plans to invest up to $100 million to establish a joint manufacturing venture in Russia's Ulyanovsk region.
The new venture is expected to focus on assembly of BAW B40 utility vehicles and related commercial vehicles.
Total production capacity of the plant has not yet been disclosed. A final agreement between the sides should be signed next month.
The first reports about the possibility of the establishment of BAW production in Russia appeared in 2006, but implementation of the project at that time was suspended.
Established in 1958, BAW initially licensed Russian vehicle designs. During the Soviet times, it specialized in the production of GAZ and ZIL cars, as well as military SUVs, based on the Soviet UAZ-469 model. After the collapse of the U.S.S.R., BAW reorganized its product lines and currently focuses on the production of SUVs, based on several U.S. Jeep models.
