Sao Paulo, Brazil, 20 Jan – Chinese group Lifan Industry has set up a partnership with Grupo Effa, a Uruguayan manufacturer of Chinese cars for Brazil, and has established that Brazil will be its base for operations in South America.
Under the terms of the deal signed last week at the headquarters of the Chinese group, in Chongqing, a new company will be created, called Lifan Motors do Brasil, to act in the Brazilian and other south American markets, according to the Brazilian press.
The Lifan and Effa groups have also agreed to make joint investments in Brazil and Uruguay by 2014, of around US$120 million as part of this partnership.
The investment will be used to modernise and expand the capacity of the assembly line in Uruguay, the research and development of products, marketing activities, expansion and restructuring of its network of showrooms, the launch of new models and installation of a new factory in Brazil starting in 2014.
Located in San José, in the Montevideo metropolitan region, and inaugurated in April 2010, the factory currently puts together the Lifan 320 and Lifan 620 models of car.
Founded in 1992, the Lifan Industry Group is currently one of the biggest private groups in china, and in 2003 it set up Lifan Automobile, following the acquisition of Chongqing Special Purpose Use Vehicle Manufacturing. (macauhub)