China's Chery plans Argentine car plant - report
* Plant to be built with Argentina's Socma group
* Investment seen at $170 million, output 40,000 units
BUENOS AIRES, July 23 (Reuters) - Chinese carmaker Chery plans to build a new assembly plant in Argentina in a joint project with the local Socma group, requiring a $170 million investment, a leading newspaper reported on Saturday.
Chery Automobile, which started selling cars overseas in 2002, is now China's biggest auto exporter. [ID:nL3E7IF0JE]
Quoting a Socma executive, daily La Nacion said the Argentine plant would be built in the Buenos Aires suburb of Berazategui with an initial production capacity of 40,000 vehicles per year.
Capacity would rise to 70,000 in a second phase, the report said, adding that construction would start as soon as financing had been secured.
Car production is surging in Argentina due largely to strong demand from neighboring Brazil, where Chery started building a $400 million plant earlier this week. [ID:nL3E7IK1VK]
Chery also assembles some 7,000 vehicles per year in neighboring Uruguay.
Argentine automobile output rose 24 percent in June from the previous year to 80,795 units, according to the private ADEFA industry group. Exports climbed 15 percent to 46,737 units last month.
(Reporting by Helen Popper; Editing by Vicki Allen)
((email@example.com; +5411-4510 2505; Reuters Messaging: firstname.lastname@example.org)) Keywords: ARGENTINA CHERY/
(C) Reuters 2011. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.
- Tweet this
- Share this
- Digg this