Chery Invests In Brazil Auto Industrial Park

On September 17, chery Automobile Co., Ltd. and the St. Paul State Government entered into a framework agreement on plant investment. Hence, Chery became the first Chinese automaker that had invested in a plant in Brazil.
 
Located in JACarei, St. Paul, the project will be wholly funded by Chery and constructed into a Chery industrial park in Brazil with an area of 1,000,000m2 and a total investment of USD 400,000,000 according to the overall plan. The project is scheduled to be constructed in two phases: Phase 1, with an investment of USD 130,000,000, will build a plant with an annual two-shift production capacity of 50,000 vehicles in 2013; Phase 2, with an investment of USD 270,000,000, will achieve an annual three-shift production capacity of 150,000 vehicles, and will introduce outstanding Chinese suppliers to the park on the basis of the business conditions of the market and plant to provide matching products for Chery and other vehicle manufacturers. Chery model series such as S12 (A1) and A13 (Fulwin 2) will be introduced at the initial stage, all of which are flexible fuel vehicles meeting the requirements of the Brazilian market, with others to be introduced on the basis of market development at the later stage.
 
In September 2009, Chery Tiggo went on the Brazilian market, won great attention and recognition from the market, and was ranked as one of the best SUV of the year in Brazil. In 2010, follow-up models such as Chery A1 and A3 passed the Brazilian emission and safety certifications and were successfully introduced to the market. Now, Chery has authorized over 50 sales service outlets in Brazil, and is extending its sales service network rapidly to the west, south and north of Brazil with the developed southeast as the center. With the constant growth of Brazil’s demand for Chery vehicles, Chery has resolved to invest in a plant in Brazil. It conducted in-depth and meticulous surveys of six states on macroeconomic environment, land and resource supplies, tax incentive, financial support, supply chain, logistics, trade union and labor cost, took into consideration facts that St. Paul and Jacarei are in the center of the Brazilian auto consumption market, have a complete auto supply chain and enjoy exceptional conditions for auto industry development, and finally fixed Jacarei as the site through comprehensive comparison.
 
Mr. Mário Mugnaini Jr., chairman of the Investment Bureau of St. Paul; Mr. Hamilton Ribeiro Mota, mayor of Jacarei; Mr. João Carlos Maranha, deputy secretary-general of the Development Department of St. Paul; Mr. Emerson Goulart Caetano de Souza, secretary-general of the Development Department of St. Paul; Mr. Chen Shulong, secretary of the CPC Wuhu Municipal Committee; Mr. Yin Tongyue, chairman of Chery Automobile Co., Ltd and other leaders attended the signing ceremony.