Business news

MINSK, 30 November (BelTA) - The degree of localization of the production of BelGee passenger cars should reach at least 50% by July 2018, Belarus Deputy Prime Minister Vladimir Semashko said following the meeting with the President of Belarus to discuss the investment passenger car assembly project, BelTA has learned.

The head of state was reported on the current status of the construction of the plant. According to Vladimir Semashko, delivery of the equipment and its installation will begin in January-February. The first phase of the plant will be launched by the end of 2016. In 2017, it should produce 60,000 cars. The Deputy Prime Minister drew attention to the fact that the perspective capacity of the plant is 120,000 cars per year. "If the market starts growing, a decision will be taken to start the second phase,” he said.

Vladimir Semashko said that even under the most pessimistic scenario, given the certain decline in the market, the plant can sell 50,000 cars.

China’s CITIC is the general designer and general contractor of the project. The company will be eligible to the terms previously guaranteed to the BelGee founders. The head of state intends to sign a relevant decree this week.

“I believe that thanks to their good price-quality ratio, safety, and service, the automobile Geely and our joint product BelGee have found their customers. Figures speak for themselves. For example, in 2013 the sales of Geely cars on the Russian market rocketed by 41% while those of such leading automobile producers as Mercedes, Audi, Volkswagen, Renault, Citroen, Mitsubishi, and Honda dropped by 15-35%. Today the share of Chinese automobiles on the CIS market makes up some 4% and is projected to reach 10%,” Vladimir Semashko noted. He added that in two years the demand on the Russian market alone is expected to reach some 3 million Geely cars.

“Therefore, we can sell some 250,000-300,000 cars on this market. Our target is 120,000 cars per year. The degree of localization should reach at least 50% by July 2018,” the Vice Premier said. He pointed out that many Belarusian companies will be involved in the production of components to achieve this level of localization.

According to the business plan, as much as $318 million will be invested in the construction of the plant and internal infrastructure and some Br320 billion – in the development of external infrastructure including roads, railroads, systems of gas, electricity, and water supply, the sewerage system, etc. Once the first production line is commissioned, the plant will employ 1,285 workers. Some 1,850-1,900 people will be working there once the plant achieves its designed capacity. “I should note that these will be highly qualified specialists who will work with state-of-the-art equipment and get decent pay,” Vladimir Semashko stressed.