Chinese car manufacturer Chery to build factory in Brazil’s Sao Paulo state

6 August 2010

Sao Paulo, Brazil, 6 Aug – Chinese car manufacturer Chery plans to install a factory in Jacareí, 82 kilometres from the Brazilian city of Sao Paulo, an investment of US$700 million, according to a report Friday in Brazilian newspaper Estado de Sao Paulo.

The paper said that at the end of August Chery officials are due to travel to Brazil to sign a protocol with the city’s prefecture to seal the deal.

The factory will be set up on a plot of land of 1.5 million square metres on the Rodovia Dutra road, which links Sao Paulo to Rio de Janeiro.

The start of operations is scheduled for 2013. Initial capacity will be between 150,000 and 170,000 units per year.

The paper also said that with its entry into the Brazilian market Chery would suspend its partnership with Brazilian group JLJ, which controls Nutriplus in Salto (Sao Paulo).

The first product will be a small car, identified as project S18, in the same class as the Gol and the Palio, which is being developed in China and will be produced in Brazil.

According to Estado de São Paulo Chery’s operation will start with importing kits (CKDs) for assembly and gradually will start manufacturing parts. (macauhub)