Chery Auto to Build New Plant in Dalian

Chery Auto continues its expansion plans with a new factory, this time in Dalian, the coastal city of northeast China. The new production plant will have a goal of 200,000 passenger cars per year, according to a report by gasgoo.com, and will start operations in mid-2011. The Chinese carmaker will invest $688 million in the plant, with the resulting output to be split between local and overseas markets.

Chery earlier this month announced plans for another production facility in Turkey that would help the company expand its product offering in Europe and seek new buyers through government scrappage schemes. Chery Automobile Co. is ready to invest up to $500 million for a new plant in Turkey but more details are yet to be announced.

According to various media reports, that two Chinese executives have already traveled to the northwestern province of Sakarya in January 2009 to find a site for the construction of the new factory.

"The Chinese 'Chery" automotive firm has applied to Turkish authorities to make US$500 million of investments in Turkey, and open to world markets via our country," Turkey's Industry & Trade Minister Nihat Ergun said at the Frankfurt Motor Show in Germany.

Chery is also one of the companies that tried to expand its coverage in Europe but purchasing new and important companies that didn't survive the crisis. For example, the Chinese carmaker has been linked with a deal for Volvo but company representatives have always denied to comment on the rumors. Geely, another important Chinese manufacturer, is reportedly the favorite party to take over the Swedish unit.