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      Lifan to invest $150m in Russian factory

      2014-08-21 16:31 chinadaily.com.cn Web Editor: Qin Dexing
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      Lifan Industry (Group) Co Ltd plans to invest $150 million in an automobile production factory in Russia's Kaluga province through its wholly-owned Singapore-based subsidiary, Lifan International (Trading) Pte Ltd.

      An agreement of investment has been signed between Lifan International and local authorities, a statement said on Tuesday.

      Lifan International's investment in Russia is part of the parent company's greater global strategy.

      Mou Gang, vice-president of Lifan Industry (Group) Co Ltd, said that by 2015, Lifan's export automobile sales are expected to reach 120,000 units with overseas sales accounting for 40 percent of total sales.

      Lifan Group has already entered the Asian, African, South American and European markets with overseas factories operating in Iran, Iraq, Ethiopia, Uruguay and Russia.

      A representative of Lifan Group told cnstock.com that export sales in 2013 reached more than 5.35 billion yuan ($850 million).

      The investment comes as the Russian economy is suffering from heavy sanctions imposed by the West, which has greatly weakened the consumption capabilities of Russians. As a result, Chinese automobile sales in Russia slumped in the first half of this year.

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