Great Wall Motors has begun construction of a new vehicle assembly plant in Russia’s Tula region, following an agreement signed earlier this year with the local government.

The Chinese automaker will spend US$520m on a full production facility in the city of Uzlovaya, which is scheduled to begin production of Haval brand cars in 2017. By 2020, the plant is expected to employ 2,500 people making 150,000 vehicles a year.

Tula governor Vladimir Gruzdev said the regional government would be the first customer for the cars once assembly begins.