Engine maker eyeing Eastern Europe market

Registered in the China-Belarus Industrial Park, Sino-Belarusian engine manufacturer MAZ-Weichai is eyeing the Eastern Europe market with a production target of 20,000 units per annum.

"Belarus is located roughly at the center of Europe. By setting up a plant in this country, we are able to access the Eurasian Economic Union market," said Hu Haihua, general manager of MAZ-Weichai.

Half of the engines produced by the joint venture will be sold in Belarus and the rest to nearby countries including Russia, Ukraine and Kazakhstan. Previously, the engines were made in China and exported to Belarus, traveling a long distance.

"We expect Weichai's sales revenue in Belarus to reach about $10 million this year, increasing from less than $3 million in 2016," Hu said.

Overseas sales contribute nearly half of Weichai group's sales revenue, and the majority of overseas sales come from economies related to the Belt and Road Initiative, he said.

During the past 20 years, Weichai has gained global recognition for its internal combustion engine technologies, which are at the same level as its counterparts from Western European countries, according to Hu.

MAZ-Weichai will receive technology license fees for each engine it sells to Belarus, Hu said.

"People in the countries and regions related to the Belt and Road Initiative have become increasingly supportive of the initiative, as we not only provide funding but also technical support," he said. "The products we introduce to Belarus meet the Euro V and Euro VI emission standards."

The joint venture was formally established in September 2017, with Weichai group holding a 70 percent stake and MAZ Group, a large State-owned Belarusian automobile engineering company, holding a 30 percent stake.

Construction of the plant started on April 5 and is expected to be completed in November, meaning MAZWeichai will produce the first batch of engines this year.

The plant will make five models of engines for commercial vehicles, trucks, buses, engineering and agricultural machinery, with engine displacements varying from 3 liters to 17 liters.

Total investment in the plant could reach up to $50 million during the two phases of construction, depending on market demand. The factory will offer 130 to 140 jobs when it runs at full capacity, and 90 percent of the employees will be local residents, according to Hu.

He said cooperation between Chinese and Belarusian companies had encountered some problems, partly due to cultural differences.

"Chinese workers are often used to working overtime to get the job done quickly, whereas local workers are not," said Hu. "Our office sits next to MAZ's. We see its employees all leave work at 4:30 pm every day but we can't do the same."

"At first, our Belarusian colleagues did not understand why the Chinese stay late at work. However, as time goes by, they also follow Chinese practice and work until 10 pm sometimes," he said.

The company abides by local laws, discussing with employees the need for overtime, overtime pay and improvements to workplace efficiency, he said.