Chinese car manufacturer Lifan (Chongqing; www.lifan.com) has laid the first stone for its new production plant in Russia during an official ceremony on 16 July 2015. Lifan, which has been China’s top auto maker in Russia since 2011, is investing USD 300m (EUR 274m) in the plant located on a 60 ha (600,000 m²) site in the Lipetsk special economic zone (SEZ). Initial production capacity will be 60,000 cars per year. The company will sell the cars in Russia and also export them to other countries.

In a congratulatory letter, China’s vice premier Wang Yang said: “I sincerely hope that Lifan Group has all opportunities to accelerate technological growth, strengthen the innovative approach and further improve the international competitiveness of Chinese car brands to allow our country to increase volumes.”

Stanislav Voskresensky, Russia’s deputy minister of economic development and head of the secretariat of the intergovernmental Russian-Chinese Commission on Investment Cooperation, described the proposed factory as a “landmark event “which will serve to strengthen the economic ties between Russia and China."

Lifan’s Gang Mu, vice president and general manager for foreign markets, commented: “We see the Russian market has great potential. We have been successfully developing the Lifan brand in Russia using the principle of permanent updates and technical improvements in the line-up. The opening of a full cycle plant in Lipetsk is part of the strategy to expand Lifan’s presence in Russia.”

Optimal logistics, good availability of human resources as well as the prospects for further development of localised production were the reasons given for choosing the Lipetsk SEZ. In addition, the zone was recognised as the most attractive investment platform for big business in the "Financial Times" 2014 global ranking of special economic zones.

There are also plans to open a Russian centre for technological development, according to Sun Tszetszyun, general director of Lifan Motors Rus who has promised a discount of RUB 10,000 (EUR 148) for any Lipetsk resident that buys one of its new cars.

In a separate move, Lifan Motors Rus and Russia’s Metcombank have launched a joint financing package for customers. Lifan Finance is offering loans of up to six years without a down payment and said it can make a decision within one hour of receiving the required documents. Vyacheslav Galuzinsky, deputy general director of Lifan Motors Rus, said this special offer for new Lifan cars expands the scope of its client audience.