Business news

MINSK, 8 April (BelTA) – The construction of the MAZ-Weichai engine factory has begun in the China-Belarus industrial park Great Stone, BelTA has learned.

The joint venture established by the Belarusian automobile engineering company and the Chinese corporation Weichai is supposed to start making engines by the end of 2018. The groundbreaking ceremony took place in September 2017. Preparatory work — the development of design documents, expert evaluation, and the approval of technical matters — took about half a year. The construction workers have prepared the site for erecting the factory buildings. A solemn ceremony took place at the construction site to celebrate the beginning of the construction process. Weichai Corporation Vice President Xu Hong took part in the ceremony.

The factory will make diesel engines for trucks, buses, and utility vehicles. The factory is designed to make up to 20,000 engines per annum. In addition to satisfying the demand of the Belarusian automobile industry the enterprise will be able to export some 30% of its output. MAZ Director General Dmitry Katerinich noted that the project has been approved and backed by China President Xi Jinping. “MAZ maintains manufacturing cooperation links with several engine suppliers. Making engines of our own is a strategic task for us,” added Dmitry Katerinich.

The joint venture MAZ-Weichai will occupy 3.5ha in the China-Belarus industrial park Great Stone. It will enjoy the preferences available to the park’s resident companies. The factory will be owned by OOO MAZ-Weichai. The charter capital will be made up of direct investments by the Chinese company and MAZ, with the share of the Belarusian company at 30%. CAMC Engineering Company is the general contractor for building the factory.

The possibility of jointly building an engine factory was first discussed when the Belarusian head of state visited China in 2016. A memorandum of cooperation was signed back then. The document provided for starting the production of diesel engines in Belarus.