Chinese private automaker Great Wall Motors (GWM) started the construction of a plant worth US$ 520 million in Russia's Tula Region, the regional government spokesperson said recently.

Tula's governor Vladimir Gruzdev said that the regional government plans to purchase Chinese cars made by the GWM.

Speaking at the foundation ceremony of the GWM plant in Tula's Uzlovaya town, Gruzdev said the localised enterprise would build China-designed cars from scratch, not merely assemble them.

"This company brings in the most advanced technology. Tula regional government promises to buy these cars," a news agency quoted the official as saying.

This is the first firm to be located in the Uzlovaya industrial park and it will employ 2,500 workers and has a capacity of making up to 150,000 Haval cars in 2020 after it starts production in 2017.