Chinese, Russian automakers form joint venture
18:41, 19 July 2011
ULYANOVSK. July 19. KAZINFORM China's fifth largest automotive group, Beijing Automotive Group (BAIC Group), announced Tuesday the establishment of a joint venture with Russia's AMS Auto. Kazinform refers to Xinhua.
The Beijing-based BAIC Group said total investment in the joint venture, BAW-RUS Automotive Co., Ltd., is about 176 million U.S. dollars, with a registered capital of 20 million dollars.
Two companies in the BAIC Group -- Beijing Automotive Works (BAW) and BAIC International Corp. -- and BAW Motor Corp. (BMC), an AMS affiliate, are involved in the joint venture that will produce light, medium and heavy cargo trucks to be sold under the BAW brand in Russia.
BAW, BAIC International Corporation and BMC will hold respectively 42 percent, 8 percent and 50 percent of the shares.
The joint venture is expected to produce 60,000 units per year by 2017. Kazinform cites Xinhua. See www.xinhuanet.com for full version