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Great Wall Motor opens first EU car plant

Updated: 2012-02-27 10:24

(chinadaily.com.cn/Agencies)

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Chinese automaker Great Wall Motor Co Ltd opened its first European factory on Feb 21 as part of its strategy to lift sales in the region.

The plant in the Bulgarian town of Lovech will assemble 50,000 units of Great Wall's Hover SUV, Steed pick-up and Voleex city car models and employ 2,000 people when at full capacity in 2013.

Investment in the plant by Litex Motors, a joint venture in which Great Wall holds a minority stake, is targeted to reach 100 million euros.

Growth in China's once-sizzling auto market fell back last year and European sales are expected to contract this year as austerity and economic uncertainty bite into consumer spending.

But China's top manufacturer of sport utility vehicles and pick-up trucks will aim to sell 600,000 vehicles in 2012, up 23 percent, with an export target of 100,000 vehicles.

Great Wall exported 83,000 units from China last year to 120 countries and regions, including Europe.

Great Wall Motor Co went public in September 2011 and raised $619 million from its Shanghai initial public offering.

The cars produced in Lovech will be the first made in the Balkan country since 1996 when production of the Rover Maestro ended.

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