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Thai Business, China's Chery May Form Joint Venture

Agribusiness conglomerate Charoen Pokphand Group's proposed joint venture to assemble Chinese cars in Thailand would have an initial plant capacity of 4,000 to 5,000 vehicles.

BANGKOK, Thailand (AP) — Thailand's agribusiness conglomerate Charoen Pokphand Group said Wednesday it is in discussions with a local partner and China's Chery Automobile Co. Ltd. and may join a venture to assemble the Chinese cars locally.
 
The plan has not been finalized and is still in negotiations, said Suthana Hongthong, manager of corporate communications for CP Group, who could not provide additional details. An official announcement could come early next year, she said.
 
The plan would team the CP Group with local partner Yontrakit Group and Chery in an investment of at least 1 billion Thai baht (US$32 million; euro22 million), the Bangkok Post reported, citing Thanakorn Seriburi, vice chairman of CP Group.
 
The proposed joint venture assembly plant would have an initial capacity of 4,000-5,000 vehicles, according to the Post and the Nation. Production would be aimed at both domestic and regional markets, Suthana said.
 
Imports from Indonesia might be a first step to opening up the Thai market prior to setting up an assembly plant, said Suthana. CP Group had earlier said it would look at importing Chery cars made in Indonesia for distribution in Thailand.
 
''The plan has grown from there,'' she said. Executives from all of the potential partners will meet at an industry show before the end of the year to discuss the joint venture plans, she said.
 
Chery, based in the eastern city of Wuhu in Anhui province, is China's biggest domestic automaker and has domestic manufacturing tie-ups with Chrysler Group of the U.S. and Italy's Fiat Group.
 
The Chinese automaker also assembles vehicles with partners in Russia, Ukraine, Egypt, Uruguay and Indonesia.
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