China Automotive Systems (CAAS) Monday in Guarulhos, in the metropolitan region of São Paulo, Brazil, opened its first plant outside China, the Brazilian press reported.
The company, whose shares are listed on the US Nasdaq electronic stock exchange, invested 20 million reais in the plant which has an installed capacity to produce up to 700 steering systems for cars in three shifts.
The factory is due to begin production in June with a single shift and its first customer is FCA/Fiat in Betim (Minas Gerais), which will install the CAAS systems in three models to be launched from July: the Uni, Mobi and Palio.
The company already exports its products from factories in China to several countries, including to Ford and Fiat Chrysler Automobiles (FCA) in the United States and other manufacturers in Russia and India.
The director of the Guarulhos unit, Euclides Borgo Jr., said that in the case of Brazil it decided to build a plant due to the requirement of a minimum local content of 65 percent.
CAAS set up its first commercial office in Guarulhos in 2012, initially to sell steering systems imported from China, and immediately started to plan construction of a plant due to governmental requirements for local production of automotive components. (macauhub/BR/CN)