Beiqi Foton Motor to set up subsidiary in Russia

Beiqi Foton Motor Co Ltd (SHA 600166) said its board has approved the establishment of a wholly-owned subsidiary in Russia.

In a statement filed with the Shanghai Stock Exchange, the company said the unit will be located in Moscow with registered capital of two mln usd.

Central and eastern Europe, particular Russia, is one of the fastest-growing overseas auto markets, with growth accelerating to 8.8 pct in 2007 from 6.7 pct in 2005,' the company said.

The subsidiary will directly purchase autos and parts from the company and then sell them through its sales network in Russia, the company said.