Chery to set up assembly factory in Russia

HEFEI, Feb. 9 (Xinhuanet) -- Having established a production base in Iran, Chinese automobile manufacturer Chery is considering to build an assembly plant in Russia, a manager of the company said.

The manager, who declined to give his name, told Xinhua that Chery has reached an agreement with Avtotor of Russia to assemble auto parts there and cooperation details are in discussion.

According to Russia media reports, Chery will use the standby production capability of Avtotor to assemble automobiles. Chery and Avtotor are also considering to set up a new plant, with a total investment of 200 million U.S. dollars, if auto sales are successful.

The manager disclosed that Chery has been seeking overseas cooperation partners, and plans to build production bases in Russia, Romania, Poland and other countries in East Europe.

He said Chery has already singed agreements with importers in the United States and Europe, and plans to sell automobiles to U.S. and European markets.

Chery has sold automobiles to more than 30 countries, with 18,000 units exported in 2005, which accounted for 10 percent of its total sales