Disclaimer: this article was originally published by Mechanical Intelligence Station.
Sources: https://mp.weixin.qq.com/s/bIGa2_OXDpDkGHBcy6r0Yw
According to a report by the Russian “Businessman Newspaper,” two sources familiar with the negotiation process informed the paper that Alpha Balt Engineering, a developer and manufacturer of energy equipment, will establish a joint venture with Chinese engine manufacturer Y Chai to produce diesel and natural gas generators in Saint Petersburg. They claimed that the project’s investment is estimated to be about 5 billion rubles.
Sources stated that initially, the enterprise will produce diesel generator sets for the fuel and energy complex facilities and intends to manufacture generator sets for the shipbuilding industry in the future. One source noted the possible production site for the joint venture may be located in the Shushary area, which is part of the Special Economic Zone of Saint Petersburg. The factory is planned to commence operations between 2028 and 2030.
News of the joint venture’s factory construction was also corroborated by a report from “RBK Saint Petersburg,” which reported that Alexander Sitov, the acting chairman of the Saint Petersburg Committee on Industrial Policy, Innovations, and Trade, had announced the plan to build a factory producing Chinese Y Chai engines in Saint Petersburg.
Sitov revealed that negotiations with the Chinese partners had been ongoing for over a year. Meanwhile, several engine manufacturers had made contact with the municipal government.
According to the official, the production site will be determined by 2025. “Only after that can we talk about starting construction. We expect construction to start this year,” Sitov added.
He further explained that the enterprise would produce ship engines and power engines.
It is noteworthy that Y Chai has been in operation since 1951, and its trademark was registered in Saint Petersburg in 2008, owned by Guangxi Y Chai Machinery Company.
Previously, “Kommersant-SPb” reported that enterprises within the Saint Petersburg Special Economic Zone achieved a revenue of 92.8 billion rubles last year. Since the Special Economic Zone was established in 2006, the total revenue from its enterprises reached 498.3 billion rubles, with total investments amounting to 126.9 billion rubles.
In 2024, there were reports that the regional government was discussing the idea of creating clusters for Chinese industrial enterprises in the Shushary area of the Saint Petersburg Special Economic Zone. Alexander Beglov, the Governor of Saint Petersburg, mentioned that the production of high-tech equipment and pharmaceuticals might be popular fields for Chinese investment.
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