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According to Brazilian media news, China Beiqi Foton planned to build a Brazilian headquarters in Rio de Janeiro, Brazil, and set up an auto plant to start production in 2015.
Julio Bueno, head of the Economic Development Energy Industry and Services Department in Rio de Janeiro, Brazil, disclosed to Reuters Brazil that Fukuda plans to have its Brazilian headquarters in the state and will also establish an automaker with an annual capacity of 20,000 cars. Bueno said that the new plant has not yet finalized the boycott, but after it is put into production in 2015, it will be outside the plant in Sao Paulo, Futian, the company’s second automaker in Brazil.
It is expected that the investment in the new plant in Futian will be R$ 250 million, approximately RMB 670 million, which will create 450 direct jobs locally. According to Orlando Merluzzi, executive vice president of Foton Brazil, from 2018 onwards, Foton will expand its production line in Brazil to produce heavy and super-heavy trucks, which are expected to attract new suppliers to invest in the state.
Merluzzi added that Fukuda plans to raise funds from Brazil’s National Economic and Social Development Bank Rio de Janeiro State Branch to obtain 80% of the project funds; in the first two years of production, 75% of parts will be produced in China; and from 2017, the local productivity of parts will be Will increase to 65%.
In addition, on September 7 last year, Foton Motors do Brazil, a subsidiary of Foton, signed a memorandum with the government of Bahia, Brazil, to establish a factory in the city of Camaari, but did not confirm the address. The plant will have a capacity of up to 30,000 vehicles/year by 2017 and employ approximately 1,000 people. According to the letter of intent, the factory will cover an area of ​​1 million square meters and is expected to produce two commercial vehicles, including a light truck and a micro-surface.
Beiqi Futian will build a second plant in Brazil and start production in 2015>