Beijing Automotive Group has formed a joint venture company called BAW-RUS Automotive to assemble and sell commercial vehicles in Russia.
The JV is between the Beijing Automotive Works unit of BAIC International Corporation and BAW Motor Corporation (BMC) and AMS Auto of Ulyanovsk, Russia. BAIC claims to be the first major Chinese automotive group to establish a joint venture in Russia since the global economic crisis that began in 2008.
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Investment is about US$176m with registered capital of $20m. BAW, BAIC International Corporation and BMC will hold 42%, 8% and 50% respectively of the shares.
The JV plans a KD kit assembly facility with capacity eventually reaching 60,000 units a year. Output will be 20,000 units in the first phase from 2012 to 2015. The light, medium, and heavy cargo trucks produced will be sold under the BAW brand in Russia.
