OREANDA-NEWS. Siegfried Wolf, Chairman of the Board of Russian Machines Corporation, and Luo Kaiquan, Vice-president of China North Industries Corp. (NORINCO), signed a Memorandum of Cooperation. The signing ceremony took place in the presence of President of Russia Vladimir Putin and Chinese Leader Xi Jinping during the official visit of Russian governmental delegation to China. By signing the Memorandum, Russian Machines and NORINCO set the framework for extensive mutually beneficial partnership in areas of automotive industry for heavy-duty trucks and passenger cars and railroad equipment engineering.

In the field of trucks, cooperation between NORINCO and Russian Machines includes creating a model line of URAL trucks with the use of BEIBEN aggregate base. The new trucks are to be produced at the facilities of URAL automobile plant in Miass,Chelyabinskregion, and will complement the existing product line of the enterprise. The other strategic field of cooperation is localization of truck components production. The project will allow URAL plant to diversify its product portfolio, to enter the new segment of road vehicles with a new competitive and affordable product, to expand export perspectives, to increase the load of production and to create new jobs. On the other hand, cooperation between Russian Machines and NORINCO will see international-level engines made atYaroslavlmotor plant used with Chinese trucks.

As a perspective field of cooperation, the parties also discuss the production inRussiaof a new Chinese passenger car brand and components, involving competence, know-how and experience possessed by Russian Machines and GAZ Group.

In the field of railroad equipment engineering, according to the Memorandum, Russian Machines and NORINCO will establish competitive supply of railcar casting components fromChinatoRussia. High-quality components fromChinawill allow Russian producers of freight cars to introduce competitive and affordable products to the market. The parties also have plans to cooperate in the development of new freight railcars which will then be manufactured and serviced inRussiausing production capacities of Russian Machines.

Implementation of the Agreement will provide Russian consumers with a wide range of high-tech, reliable, and competitive machinery products.