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Cornerstone Laying Ceremony Held for Chery Brazil Industry Park

Jul 19, 2011|22 hits

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On July 19, 2011, the cornerstone laying ceremony for Chery Brazil Industry Park was held at Jacarei, St. Paul. Some 700 people from all circles were present, including Alkmin, governor of St. Paul; Qiu Xiaoqi, Chinese ambassador to Brazil; Wang Qingyuan, commercial counselor; Hamilton Ribeiro Mota, mayor of Jacarei; Yin Tongyue, chairman of Chery; Zhou Biren, general manager of Chery International, as well as councilors from St. Paul, enterprise representatives, representatives of China-invested organizations, Chery’s distributors in Brazil and journalists.

Alkmin and Hamilton addressed the ceremony, congratulating Chery on the cornerstone laying of the park, thanking the Chinese side for building a plant in Jacarei, and pledging that the St. Paul State Government and the Jacarei Municipal Government will offer strong support to the park. Ambassador Qiu Xiaoqi delivered an ebullient speech, congratulating Chery on the launch of park, saying the launch of the project represents the fast development of Sino-Brazilian relations. In recent years, with the joint efforts of the two sides, friendly ties and pragmatic cooperation between the two countries have been cemented constantly; China has become Brazil’s largest trade partner and export market as well as second largest source of import, and jumped as a country with the most investment in Brazil. Yin noted, as China’s largest independent automaker, Chery gives top priority to the construction and operation of the park in its overseas strategy. The project’s success will mark a new era of Chery’s overseas operations.

After that, Alkmin, Qiu, Hamilton, Yin and other guests unveiled the cornerstone and posed for a photo. At last, Qiu, Yin, Zhou and the executive level of Chery’s distributor in Brazil gave a collective interview to nearly 50 media outlets, elaborating on the construction progress of the park to journalists and guests.

St. Paul is Brazil’s most developed state, with an industrial output value accounting for 45 percent of the country. Particularly, the state is developed in the auto industry, 12 world-famous automakers have built plants here so far, with a total annual output of 1.2 million units. Located in Jacarei, the park is about 80 kilometers from downtown St. Paul. Chery chose Jacarei to construct the park, because it is situated in the center of southeast Brazil with a mature auto market, and it has convenient transportation and a perfect auto supply chain. Besides, the local government has been attaching great importance to and offering strong support for the project. For these reasons, Chery decided to build a plant in Jacarei. In the second half of 2010, Chery and the Jacarei Municipal Government reached a memorandum of understanding on plant building. With a total investment of about USD 400 million, the park is scheduled to be constructed in two phases. With an investment of USD 140 million, Phase I will make annual production capacity reach 50,000 units in 2013. Phase II will increase the total investment to USD 400 million and make the annual production capacity up to 150,000 units. At the same time, Chery will, based on market situation and the business conditions of the park, introduce Chinese automotive parts suppliers to the park to supply matching products to Chery and other vehicle manufacturers. The park will cover 1 million square meters and create 3,000 direct jobs after construction completion, is expected to be completed and put into operation in September 2013. Phase I will involve three production lines: coating, welding and assembling, and a stamping line will be added in Phase II. Thus, the park will become Chery’s first overseas plant with all the four production lines: stamping, welding, coating and assembling. The first batch of models proposed to be manufactured in the park include Face (A1 in China) and A13 (Fulwin 2 in China), two best-sellers in Brazil. Besides, to cater to the demand of the Brazilian market, Chery will give priority to Flex.and make the annual production capacity up to 150,000 units. At the same time, Chery will, based on market situation and the business conditions of the park, introduce Chinese automotive parts suppliers to the park to supply matching products to Chery and other vehicle manufacturers. The park will cover 1 million square meters and create 3,000 direct jobs after construction completion, is expected to be completed and put into operation in September 2013. Phase I will involve three production lines: coating, welding and assembling, and a stamping line will be added in Phase II. Thus, the park will become Chery’s first overseas plant with all the four production lines: stamping, welding, coating and assembling. The first batch of models proposed to be manufactured in the park include Face (A1 in China) and A13 (Fulwin 2 in China), two best-sellers in Brazil. Besides, to cater to the demand of the Brazilian market, Chery will give priority to Flex.

In recent years, with economic development and the rapid growth of the Brazilian auto market, Brazil’s total auto sales has reached 3.3 million units in 2010, ranking fourth in the world, and the market will be promising in the future. Since entering Brazil in 2009, Chery’s products have been popular with Brazilian consumers, with sales surging. In the first half of this year, Chery’s exports to Brazil amounted to 18,000 units, up 321 percent year on year, accounting for over 25 percent of Chery’s total exports. Currently, Chery has four models in Brazil: Tiggo, Face (A1 in China), Cielo (A3 in China) and QQ. In the meantime, the number of Chery’s sales outlets in Brazil has topped 80, almost covering the whole Brazil. With the progressive expansion of the market, Chery is developing other sales outlets in a planned and systematic manner.

As China’s largest autonomous passenger vehicle enterprise, Chery has been in pursuit of “independent innovation, world first class and human benefit”. Now, Chery has achieved cumulative sales of 3 million units in the world, with its consumers spreading in over 80 countries and regions; Chery’s product concept of “More Energy-saving, Much Safer, More Environment-friendly” has been well recognized worldwide. The park’s construction and operation will bring Chery’s overseas operations into a new stage.

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