Foton Auto sets up manufacturing base in Russia

Foton, a leading domestic manufacturer of commercial vehicles in China, will assemble and produce its own brand of vehicles in Russia starting at the end of 2010, and it will establish a manufacturing base with an annual output of 100,000 units in Russia in 2012.

Currently, Foton has signed an agreement with the Moscow municipal government in the presence of Guo Jinlong, the mayor of Beijing, and Yury Luzhkov, the mayor of Moscow. At the same time, Foton's European Division Department, also known as Russian Foton, was officially launched.

The agreement states that the installment and production of vehicles must begin in Russia by the end of 2010 and a production base with an annual output of 100,000 units will be established in Russia by 2012. After that, Russia will become Foton's production and operation center in Europe.

The reason for choosing Russia as Foton's global strategic entry point is that Russia was the first major destination for Chinese automobile exports in the first few years of the financial crisis, and it played a very important role, said Wang Jinyu, general manager of Foton.

By People's Daily Online