Foton Invests $0.3 Billion to Build A Plant in Brazil

www.chinatrucks.com: According to foreign media, Foton has signed an agreement with Brazil to build an assembly plant in Brazil in 2013 with the USD 0.3 billion investment. Both sides has signed the contract formally in Dec. 15, and announced it in December 20th.

In September 7th 2012, Foton Motors do Brazil Company signed a memorandum of understanding with Brazil’s Bahia, the state government in Brazil. Both sides planned to build a plant in Camaari city of Bahia. Foton expects the new plant to be begun the production by the end of 2013. The annual capacity will reach 30,000 units of vehicles by 2017. It will hire about 1000 people. According to the letter of intent, the plant covers an area of 1 million square meters. It is expected to produce two commercial vehicles, which is a pickup and a minibus.

 

Foton will produce vehicles by the way of CKD firstly. Then it gradually increase the local purchase rate of parts, and reach 65 percent by 2017. Foton will set up 130 distribution shops from 2013 to 2017.

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