Chery to invest 20 billion yuan to top domestic auto brands

• Source: Global Times
• [11:22 February 08 2010]
• Comments

Chery Automobile is planning to invest 20 billion yuan in Ordos, Inner Mongolia Autonomous Region, North China, to expand its production capacity.

The Chinese automaker confirmed that the company is approaching officials of Ordos after its 20 billion yuan project was brought to light from the local merchants Information.

Chery is expecting an annual production capacity of 2 million vehicles once the project is carried out. In 2009, the automaker had an annual production capacity of 600,000 units. The figure will increase along with the launch of its Dalian plant with 200,000 vehicles productivity, and its Wuhu plant with 10 billion yuan investment.

The Ordos project is located at the machinery and equipment manufacturing plant at Dongsheng district, and the local government has reserved a large area for Chery.

A person in charge of the project revealed that the local government and Chery have negotiated twice, and Chery which maps out the scale of 20 billion yuan can finance locally. "But there is no new progress at present, we will continue discussing the issue after the Chinese New Year."

Agencies and Shi Jierui contributed to this story