Haier Group has announced a new refrigerator plant in Russia as part of its localization efforts, China Daily reported.
Haier, considered to be China's largest maker of home appliances, is splurging $55 million on this fresh Russian venture that includes boosting its R&D and setting up manufacturing and assembly facilities.
China Daily reported that $39 million has been used to set up the plant, while the remaining will be spent this month on components and production.
The new 24,500sqm facility is in Kamsky Industrial Park, Naberezhnye Chelny, which is said to be a significant industrial city in Tatarstan Province.
The site, tagged as the first non-energy Sino-Russian project, is expected to reach an annual output of 500,000 refrigerators by 2020.
During the first stage, production capacity is pegged to hit 250,000 units. Target markets comprise of the Commonwealth of Independent States, Russia and Europe.
The plant will have two laboratories dedicated to product quality check and technology innovation.
"Innovation and cutting-edge technologies are the genes of Haier's global strategy," Haier Group's rotating president Liang Haishan was quoted as saying by China Daily. "Tatarstan is one of the most prospective Russian regions in terms of economic development, technologies and innovations."
Liang added that Tatarstan's investment environment and competent administrators bode well for Haier.
"We are very proud that we managed to create all the necessary conditions in the region to attract such hi-tech companies as Haier," Tatarstan Republic's president Rustam Minnihanov said.
Minnihanov added that opening up a factory in Russia signals a relationship that will mutually benefit the country and China.
Aside from the refrigerator factory, Haier has also begun setting up a TV assembly unit and an R&D center in Russia.
Currently, the Chinese company has about 200 service centers in 120 Russian cities, according to Plastics News Europe. The group's annual turnover has jumped 10-fold since 2010.