Foton Motor builds factory in Brazil

Chinese truck maker Beiqi Foton Motor Co Ltd will invest $300 million to build its first factory in Brazil, which is expected to begin production next year, authorities in the Bahia state said.

Foton Motors do Brazil, a subsidiary of Foton Motor, has signed an agreement with the Bahia government on Sept 7 to build a plant in Camacari.

The factory, which will cover an area of 1 million square meters, is expected to produce two types of commercial vehicles. By 2017, its annual production capacity will reach 30,000 vehicles.

Camacari is one of Brazil's hubs for the auto industry, with Ford Motor Co and Jianghuai Automobile Co Ltd both present in the area.

Chinese truck makers are drafting strategies to enter the overseas market, amid the lackluster domestic market.

Foton Motor mapped out its 2020 Strategic Plan in 2010, aiming to set up five plants in five different countries, with planned capacity of 100,000 vehicles for each factory.

In April 2011, Foton established a production base in East Africa. In addition, the company is also expected to set up plants in India and in Russia.