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ULYANOVSK, July 18 (Itar-Tass) —— The first Russian-Chinese joint company for the production of transport vehicles will be created in Ulyanovsk, the press service of the regional administration said on Monday.
According to the press service, on Tuesday, the Beijing Automobile Works (BAW) and the Russian AMS Group will sign an agreement on the setting up of a joint venture for the production of commercial and light vehicles.
Under the plans, more than five billion roubles (USD 1 = RUB 28.17) will be invested in the creation of a new facility of a designated capacity up to 40,000 vehicles a year, the press service said.
Previously, an agreement of intent on the setting up of the joint venture in Ulyanovsk was signed between Chinese BIAC corporation and the Ulyanovsk-located BAW Motor Corporation company back in 2009, the press service reaffirmed.
Currently, the Ulyanovsk-based plant of the BAW Motor Corporation assembles three models of BAW trucks with a capacity from 0.99 to 4.00 tonnes, as well as buses for 38 seats, the press service of the regional administration said.
The new facility, which will be named BAW-RUS Motor Corporation, will procude small and medium buses, four-wheel vehicles, minivans, and trucks with the capacity up to eight tonnes, the press service said.
The facility is expected to be fully commissioned by 2015, when it will start assembling up to 40,000 vehicles a year, the press service said. The level of the production localisation will be increased to 70 percent by 2015.
The company plans to create 1,500 new jobs by the year, the press service of the Ulyanovsk regional administration said.