China's Great Wall Motor Opens Auto Plant in Europe

China’s leading maker of SUVs and pick-up trucks opened its first European plant on February 21.

Great Wall Motor Co Ltd opened its plant in the Bulgarian town of Lovech and will produce the first autos made in Bulgaria since production of the Rover Maestro ceased in 1996. When the Great Wall Lovech plant reaches full capacity in 2013 it will assemble 50,000 units of the Great Wall Hover SUV, Steed pick-up and Voleex city car using 2,000 employees. The plant will ultimately cost 100 million euros ($134.5 mil.).

Great Wall exported 83,000 vehicles to 120 countries and regions last year. Despite slowing growth in China and a likely contraction in Europe, Great Wall has targeted a 23% growth in total sales over 2011 to 600,000 vehicles in 2012, with exports of 100,000 units.

Great Wall became the first private auto company to become public in 2003 with a Hong Kong IPO. In September 2011 it raised $619 million in its Shanghai IPO in September 2011. As of 2010 it became China’s top producer of SUVs. It was also the only Chinese car company sell in the EU. In 2011 Great Wall sold 434,500 units, making it China’s tenth most-productive automaker.