The Chinese car company Chery aim to increase its production in South America with a factory in Venezuela that begins producing vehicles in 2011.

The established factory, with a cost of 20 million USD, will manifacture over 20,000 cars annually, reported Chery International board.

For this project, a cooperation agreement has been signed between the company and the China Development Bank supported by the Venezuelan government.

The main aim of this first chinese company in Venezuela is the local market, which includes the presence of markets from various other nations.

Venezuela imports over 50 percent of its auto parts, and the government has asked foreign auto makers, including from China, to transfer technology to this country. Chery Automobile Co., the largest auto exporter in China, has answered the call. Chery Automobile Co. operates 16 production facilities outside of China, including two in Latin America, one each in Uruguay and Brazil. The factory is going to be the Chinese exporteurs’ third and the biggest facility in South America region.

[adrotate group=”10″]