China's Great Wall to invest in car assembly

January 19 (Business Insight Malaya) Great Wall Motor (GWM) Co. Ltd., one of the largest automotive companies in China, in partnership with Statemotor Corp. will invest at least $8 million in an assembly facility in the Philippines, according to Cristino L. Panlilio, managing head of the Board of Investments (BOI).

Panlilio recently met with officials of the local venture to firm up their investments.

In July, BOI approved the project registered by Statemotor for the assembly of the Chinese brand commercial vehicles and parts manufacturing.

Statemotor is owned by State Properties Corp. led by Allen Roxas as chair.

To qualify as participant in the Motor Vehicle Development Program, a company has to make an investment of at least $8 million in assembly and parts manufacturing.

The BOI approved the project under Classification II (Commercial Vehicles) of the Motor Vehicle Development Program.

Based on that approval, Statemotor is locating the line at its plant on J. Aguilar avenue in Pamplona.

Assembly capacity will be at 500 units annually.

To comply with the program, Statemotor entered into a technical licensing agreement for the supply of knocked (KD) kits, KD parts and components with GWMl whose major products include sedans, sport utility vehicles, pick-ups and multipurpose vans.

GWM has authorized Statemotor to locally assemble the Wingle 4x2 and 4x4 pickups and the Hover 4x2 and 4x4 SUVs.

Statemotor is the distributor of GW vehicles in the Philippines.

GWM is one of the largest automotive firms in China, with products sold to more than 120 countries and regions.

As China's first private automobile enterprise listed on the Hong Kong Stock Exchange, it has more than 30 subsidiaries and over 22,000 staff members with an annual capacity of 400,000 complete vehicles and the capability to independently produce key parts such as engines as well as front and rear axles.

Statemotor has been importing completely built-up (CBU) units since 2009 to test the quality and performance of Great Wall vehicle models for market distribution.

It initially brought in completely built-up units such as cars, trucks and buses on its first year of operation.

The partnership has been expanded into a technical licensing agreement for the supply of KD kits, KD parts and components for the assembly of GWM’s SUVs, pick-up and MPV series.

Other than Great Wall, Statemotor has partnerships with China's major auto companies Zhong Tong Bus Holding Co. Ltd. (for buses), Yuchai Machineries Co. Ltd. (engines), and SAIC GM Wuling Automobile Co. Ltd. (for mini pick up trucks).

Statemotor's assembly plant in Talon 1, Las Pinas City would as the serve company's depot for the Great Wall and Zhong Tong products as well as the showroom and service center.

It could build a bigger facility to accommodate expansion.