Foton Motors of Brazil signs contract to build factory in Bahia

12 September 2012

Foton Motors of Brazil, a subsidiary of Chinese group Beiqi Foton Motor Co., is due Wednesday to sign with the government of the Brazilian state of Bahia, an agreement to build vehicle factory in the Camaçari industrial park, in the metropolitan region of Salvador, the state government said Tuesday.

The agreement includes investment of US$300 million (605 million reals) in the factory, which is expected to start operating at the end of 2013 and produce 30,000 vehicles a year by 2017.

In the statement, the state government said that growth of the Camaçari industrial park and the presence of specialised suppliers, as well as a factory of US automotive group Ford, contributed to Foton motor Group’s choice of location.

The company has three points of sale in Brazil, in Várzea Paulista, Anchieta and Guarulhos, all in São Paulo, according to its website.

The announcement comes some two months after JAC Motors, also from China, gave up on its 900 million-real investment to build a factory in the same region, due to a hike on the Tax on Imported Products for imported cars set by the federal government.

Founded in August 1996, and with its headquarters in Beijing, the Foton Group is the biggest automotive group in China and manufacturers heavy and light goods vehicles, tractors and other machinery. (macauhub)