Chinese automotive group Chery plans to get 30 pct of its parts at new Sao Paulo factory from Brazilian companies

22 July 2011

Jacareí, Brazil, 22 July – Chinese group Chery plans for 30 percent of the parts used in the vehicles it makes at its factory in the city of Jacareí, in the Brazilian state of Sao Paulo, to come from Brazilian companies, the Brazilian press reported, citing the chairman of Chery Brasil, Luis Curi.

At the group’s first car factory outside China, Chery plans to attract Brazilian companies to supply the parts for the factory, where the group will initially invest over US$200 million.

Chery has factories in 12 countries, but these are merely assembly units for parts manufactured in China.

Curi said that if it were not possible to attract Brazilian companies to provide 30 percent of the parts, the group would contact Chinese companies to set up factories in Jacareí.

The chairman of Chery Brasil said that in the long term the aim was to incorporate 50 percent of Brazilian parts.

Construction of the new factory in Jacareí, 90 kilometres from Sao Paulo, began Tuesday with the ceremony to lay the first stone. (macauhub)