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The Official Start of Production of Great Wall Motors’ Tula Factory Started A New Journey of Globalization of Chinese Automotive Brands

Category: Enterprise News 2019-06-14

On Jun 5th, Great Wall Motors' Tula Factory in Russia (hereinafter referred to as “Tula Factory”), the first overseas full-process vehicle manufacturing plant built by Chinese automotive brands, was officially completed and put into production. Meanwhile, HAVAL F7 was also launched overseas as the first global car of Chinese automotive brands. It marked that Great Wall Motors’ globalization strategy has entered a new stage, and more importantly, Chinese automotive will also start a new journey of globalization. 


Great Wall Motors' Tula Factory in Russia was completed and put into production

As the largest non-energy equipment manufacturing project invested by Chinese manufacturers in Russia, the completion and start of production of Tula Factory is a key step for Great Wall Motors to expand the global market, and reflects the profound friendship between the Chinese and Russian people. It is a new milestone of economic and trade exchanges between China and Russia, marking a new era for Chinese automotive brands in the Russian automotive market.

As the first overseas full - process factory Tula Factory shows a new level of China’s automotive industry

Great Wall Motors' Tula Factory in Russia is the first overseas complete vehicle manufacturing plant built by Chinese automotive enterprises, covering the four major production processes of stamping, welding, painting and general assembling. The project has a planned annual output of 150,000 vehicles with a total investment of USD 500 million and localization rate up to 65%, and lasted for 4 years. With advanced technology introduced, Tula Factory represents the new level of China’s automotive industry. It sets an example for Chinese automotive enterprises to “go global” in shifting from the former output of product trade to the standard output of technology. 


Great Wall Motors' Tula Factory in Russia

In terms of production, the stamping workshop in Tula Factory is equipped with a full-automatic closed production line, and the automation rate of main welding wires in the welding workshop has reached 100%. Advanced automatic assembling line is also used in the painting workshop to ensure the quality of paint film and improve the automation level of line. The double-line arrangement is used in general assembling process, and the flexible design can meet the demand of the production of both bearing and non-bearing vehicle models.  



The full-automatic production line of Great Wall Motors' Tula Factory in Russia

In terms of quality control, in order to ensure that all vehicles delivered to users meet their requirements, 100% static and dynamic inspection on each vehicle will be carried out in Tula Factory before it leaves the factory. Meanwhile, professional road test inspectors will carry out road test on each vehicle to ensure that all quality requirements are met.


The Launch of HAVAL F7

When China started its automotive industry, China adopted the mode of “market for technology” to gradually build up a modern automotive industry system due to a relatively weak industrial foundation. Now, as the automotive industry grows bigger and stronger, Chinese automotive brands begin to rapidly improve the local production level by means of standard output of technology, so as to further expand overseas markets.

Explore the eastern European market and help Chinese automotive brands to compete globally

Since 2018, China’s automotive market has been transforming from an incremental market to a stock market. Therefore, it is an inevitable choice for Chinese automotive enterprises to go global, expand broader overseas markets, build globally competitive products and create automotive brands with global influence. 


Great Wall Motors' Tula Factory in Russia

Therefore, the completion and start of production of Tula Factory has great significance for the globalization of Great Wall Motors. With the in-depth layout of localization, Great Wall Motors may further understand the laws and regulations, consumption preferences and quality management system of the local markets, so as to efficiently build products that better meets the needs of local markets. In the future, Great Wall Motors will continue to provide global consumers with innovative, technological and reliable products, as well as quality service experience.

Tula Factory is located in the Uzlovaya Industrial Park, Tula, Russia, close to the intersection of M4 Expressway and P140 Expressway, 35km away from the capital of Tula and 18km away from Moscow. Thanks to the convenient transportation, the high-quality products from Tula Factory will be sold not only in local market of Russia, but also in the neighboring countries of Russia, such as Kazakhstan, Azerbaijan, Moldova and Kyrgyzstan. The superior geographical location makes it an important transit point for Great Wall Motors to expand the Asia and Europe and a starting point for Great Wall Motors to reach the Europe and global markets. 

In addition, Tula Factory also offers OEM assembling to other Chinese automotive brands, thus making Chinese automotive brands not completely dependent on other local OEM plants and greatly reducing the cooperation risk. Moreover, it will not only facilitate the joint development of Chinese automotive brands in Russia, but also further reduce damage to the natural environment from new plants and make full use of the existing advanced production capacity.


Wei Jianjun, Chairman of Great Wall Motors

In the view of Wei Jianjun, Chairman of Great Wall Motors, the issue facing Chinese automotive brands in globalization is not technology or product quality, but the ability to go global, which requires more resources and energy. Tula Factory was officially completed and put into production after overcoming various difficulties and making extraordinary efforts. It has explored a relatively complete path of globalization for Chinese automotive brands to “go global”, and will bring lasting and far-reaching impact to the globalization of China’s automotive industry.

Boosting the transformation and upgrading of the economic structure of China and Russia as a role model for China-Russia cooperation

At present, Chinese economy has entered a period of deepening transformation. The globalization is becoming a new growth point for the further development of Chinese enterprises. Meanwhile, brand building has gradually become crucial to Chinese economy. It is more important and urgent than ever to promote the transformation from “Made in China” to “Create in China”, from “Chinese speed” to “Chinese quality”, and from “Chinese products” to “Chinese brands”.

Therefore, as the first car built in Tula Factory, Great Wall Motors selected HAVAL F7, the flagship model of HAVAL F series and the first global car with perfect modeling and rich technology configuration. It aims to establish the high-end image of Chinese automotive brands, and boost the export layout of Chinese automotive enterprises and even the whole country. In the future, Tula Factory will also produce HAVAL F7x, HAVAL H9 and other models. 

The completion and start of production of Tula Factory is an important step for China’s automotive industry in response to the “Belt and Road” Initiatives. It proves that China’s automotive industry has made a solid step from “going up” to “going global”, and it is a milestone of China’s transformation from an importing country to an exporting country of vehicles, laying a solid foundation for China’s transformation from a big manufacturing country to a strong one. 


Russian employees of Great Wall Motors' Tula Factory in Russia

In addition, as the largest industrial project in Tula, the completion and start of production of Tula Factory will also contribute to the economic development of Russia. Last year, Russia issued a statement, aiming to become the world’s fifth largest economy by 2024, which urgently needs a large amount of capital investment to change the current economic situation. The total investment of Tula Factory Project is more than USD 500 million, and its’ total output value may exceed RMB 18 billion after it is put into production, achieving profits and taxes of more than RMB 3 billion, stimulating the employment of about 4,000 local residents in Russia with significant economic and social effects. 


Russian employees of Great Wall Motors' Tula Factory in Russia

More importantly, with advanced production technology, quality control and environmental protection measures, Tula Factory will form the “banyan effect” in the future, which will drive the formation of local automotive manufacturing industrial cluster and downstream industrial chain and further promote the transformation and upgrading of the local industrial structure in Russia.  


Great Wall Motors' Tula Factory in Russia

As a Chinese automotive enterprise actively assuming social responsibilities, Great Wall Motors has carried out a series of activities in Russia as always. In 2017, Great Wall Motors donated 1.5 million rubles to the No.30 Middle School in Shakhovska Village to repair the roof of the school building, thus ensuring the smooth opening of the school. With the support of the local government, Great Wall Motors has also built a railroad enabling the plant to get access to the Russian railway network. In December 2017, the first railway branch line to Tula Factory was officially opened.

The completion and start of production of Great Wall Motors’ Tula Factory in Russia not only pushes Great Wall Motors’ globalization strategy to a new height, but also starts a new journey of the globalization for Chinese automotive brands. More importantly, it is one of the important achievements of China-Russia strategic cooperation in the process of the transformation and upgrading of the economic structure of China and Russia. The completion of Tula Factory will facilitate the continuous improvement of China-Russia comprehensive strategic partnership as fruit of the continuous improvement of China-Russia relations.

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