Geely Confirms Plans for Belarus Joint-Venture Plant

VIENNA – Chinese auto maker Geely confirms plans to expand its BELGEE joint-venture operation in Belarus, which assembles cars from semi-knocked-down kits in Borisov near the Belarus capital of Minsk.

Geely and the government of Belarus celebrate the official signing of an agreement called the “Geely-Belarus joint-venture agreement on the establishment of a large automobile-assembly project” during a visit to China by Belarusian President Alexander Lukashenko.

In fact, the BELGEE JV was established in 2011. Geely partners in Belarus with two state-owned companies: BELGEE is owned 50% by dump-truck manufacturer BelAZ, 32.5% by Geely and 17.5% by Soyuzavtotekhnologii, a 50-50 JV between Belarusian supplier BATE and China’s Shentou Investment.

“The Geely-Belarus joint venture agreement will both promote the development of the Belarusian automobile industry and provide Geely with a platform from which to expand its presence in the (Commonwealth of Independent States) market, representing an important step in the company's overseas ambitions,” Geely says in a statement.

With the document signed in China, Geely and the state of Belarus confirm earlier plans to construct a plant with annual capacity of 120,000 cars assembled from complete-knocked-down kits.

The investment will be more than $500 million, Belarus Industry Minister Dmitry Katerinich tells local media.

“Building on this initial foundation, the project's production capacity and product line will subsequently be expanded, eventually allowing it to supply Russia, Ukraine and the wider CIS market,” Geely says in a statement.

The new plant reportedly will be located near the village of Peresady in the Borisov district.

Plans published earlier this year call for two stages, with annual capacity of 60,000 cars to be reached by the end of 2015 and 120,000 planned for 2016 to 2017. The second stage is expected to include a stamping operation as well.

Volume SKD assembly of the Geely SC7 sedan started in February at the BELGEE plant in Borisov. BELGEE also built the first units of the Geely Emgrand X7. But only Geely vehicles had been produced through June.

Geely says the JV also will build the SC5 small sedans and LC Cross small hatchbacks in addition to the Geely SC7 and Emgrand X7 models.

The JV, which until now sold its cars only through one dealership in Minsk, is creating a countrywide dealer network. Russia is expected to become BELGEE’s main market.

Geely cars also are assembled in Russia and Ukraine. Geely is the best-selling Chinese brand in the two countries.