Friday, December 05, 2008

Beiqi Foton to set up sales unit in Russia

Beiqi Foton Motor Co Ltd<600166>, the largest commercial vehicle producer in China, said on Thursday its board has approved to set up a wholly-owned unit in Russia, according to its filing with the Shanghai Stock Exchange.

The sales unit, with a registered capital of US$2 million, will be located in Moscow and target the market in eastern and central Europe, which is one of the fastest-growing overseas auto markets with growth up to 8.8% in 2007 from 6.7% in 2005, the company said in the statement.

Meanwhile, the unit is expected to directly buy vehicles and parts from Beiqi Foton, and then sell them through the its sales network in Russia,

The establishment of the unit is not only an important step for Beiqi Foton to expand to the Russian market, but also lays a good foundation for the its cooperation with Daimler AG in the international market.

On Aug. 7, Beiqi Foton and Daimler signed a letter of intent to cooperate globally in commercial vehicles.

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