Zhejiang Geely Holding Group will set up a vehicle assembly plant in Brazil with an investment of $311 million, Brazilian magazine Veja reported on Nov 21 on its website.
The magazine said that the most likely location for the plant is Santa Catarina state, but that the location will be announced later.
The plant is expected to create 1,500 jobs and to have an annual production capacity of 100,000 vehicles, the report said.
Geely plans to manufacture two to three models in the plant starting in 2015, with prices between $10,000 and $11,000.
At the beginning of the year, the company expressed interest in setting up a factory in Brazil. However, it decided to wait for some time due to policy changes in the Brazilian car industry.
The company has already held talks with Brazilian government members two times this year to discuss the project, the report said.
A group of Brazilian authorities, including Industrial and Trade Minister Fernando Pimentel and the Governor of Santa Catarina Raimundo Colombo, visited China at the beginning of November and said that they would welcome the plant.
According to the arrangement proposed by Brazilian authorities, a Geely delegation will negotiate the details of the plant further with Brazilian President Dilma Rousseff in Brazil in December.
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