Models pose with Haval H7 SUV of Great Wall Motors during an automobile exhibition in Shanghai, April 22, 2013. [Photo/IC]

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

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 localized 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," Interfax 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.

With new SUV delayed, Great Wall sales tumble	Great Wall Motor plans to open Russia factory