Beijing OKs Chery's plan to build plant in Brazil
Chery Automobile Co. says its plan to build an assembly plant in Brazil has been approved by the National Development and Reform Commission, China's highest economic planning agency.
Chinese companies investing overseas are required to submit their investment plans to the commission.
The approval has cleared the way for Chery to build a $400 million plant in Sao Paulo. Chery also will bring some Chinese suppliers to Sao Paulo to supply the facility.
Last September, Chery signed an agreement with local Brazilian officials to build a plant with an initial output of 50,000 vehicles a year. Starting in 2013, the facility will produce Chery's S12 and A13 small cars.
With another $400 million, the plant will increase production to 150,000 vehicles a year, Chery said in a statement.
Chery now sells its Tiggo SUV as well as the S12 and A3 small cars in Brazil. The vehicles are shipped from Chery's assembly plant in Uruguay.
Chery is the only Chinese automaker that has unveiled plans to build vehicles in Brazil.
