Annual production of 100,000 Jianghuai Automobile Brazil Plant officially laid the foundation


On December 4, local time, China Jianghuai Automobile held a groundbreaking ceremony for the foundation of the Brazilian factory. Several Jianghuai executives, Chinese diplomats in Brazil and Brazilian government officials attended the ceremony. The plant will be put into production in 2014 and will produce 100,000 passenger cars and commercial vehicles each year.


Jianghuai's Brazilian factory officially laid the foundation


At this ceremony, Jiang Jinhuai Chairman An Jin, Deputy General Manager of Jianghuai Auto Co., Ltd., Brazilian Minister of Industry and Trade Fernando Pimentel, Governor of Bahia Jaques Wagner. He participated in the foundation laying ceremony. There were more than 100 people in the media and more than 500 customers.


The JAC also confirmed the part of the data previously disclosed by the media. The factory is a joint venture between Jianghuai Automotive and local partner SNC, a wholly-owned subsidiary of SHC. Jianghuai holds 34% of the equity, while SNS holds 66% of the equity. The investment in the factory project is 250 million U.S. dollars, and the total investment in the future will reach 900 million reals (about 500 million U.S. dollars).


The new plant is located in the center of Cama?ari in Bahia, in the northeast of Brazil. It covers an area of ​​4.7 million square meters and has a capacity of 100,000 cars and trucks per year. It will create 3,500 direct jobs for the local people. , and 10,000 indirect jobs.


In addition to the factory, there will be four nearby craft centers, a test run, a research center and an emissions laboratory.


80% of the construction work is undertaken by Brazil and 20% by JAC. At present, JAC's representative in Brazil is Sérgio Habib, President of the SHC Group. He also serves as President of JAC Brazil.


Before that, the president of Jianghuai Brazil Habib disclosed that the original JAC planned to put the Brazilian plant into production in 2013. However, due to the tightening of the Brazilian financial credit policy, the proportion of auto import tariffs has been significantly raised, thus delaying the commissioning date to 2014; In 2015, JAC will account for 2% of the Brazilian automobile market's sales share, which exceeds the total share of the Chinese car manufacturers' market share in the passenger car market in Brazil last year.


In Brazil, China’s third-largest automobile export market, Jianghuai Automobile, despite marching from March 2011 to sell J3 and J3 Turin models, has already dominated the auto market. In 2011, Jianghuai exported a total of 37,725 vehicles (including passenger cars and commercial vehicles) to Brazil, becoming the highest-volume independent Chinese brand in Brazil and the second largest export volume among multinational brands.


Production model


It is reported that the JAC Brazilian factory mainly produces vehicles under the price of 50,000 rials ($27,000), including cars and trucks, covering passenger cars and commercial vehicles.


Foreign media reported this year that Jianghuai Automobile intends to start production of its newly officially launched Ruiying IISUV model (ie the previous SII) at a Brazilian plant. JAC Ruiying IISUV officially unveiled this year at the Beijing Auto Show, targeting both domestic and international markets.


Foreign media indicated that the Brazilian market will import the car in 2013; in addition, although the official is not yet confirmed, Jianghuai Automobile intends to realize local production of the car in Brazil. The JAC Brazil plant will be put into operation in 2014 and will likely produce Ruiying IISUV.


Has encountered construction risk


In August of this year, Brazilian media reported that Jianghuai Automobile had stopped construction of the plant for two reasons. This is Jianghuai’s second intention to abandon the Brazilian factory project. Last year, shortly after the Brazilian government decided to increase the imported vehicle's Industrial Product Tax (IPI) by 30%, JAC said for the first time that the project was shaken.


The first reason is still the adjustment of the IPI tax rate by the Brazilian government's new auto management system. The plan belongs to the government plan "Brasil Maior" promulgated last April. According to the Brasil Maior plan, the IPI tax rate for imported vehicles from countries other than Mercosur and Mexico is maintained at a 30% rate; for vehicles manufactured in Brazil by overseas car makers, if the localization rate of parts is less than 65%, IPI The tax rate also increased by 30 percentage points.


The Brazilian government has made policy adjustments after changing the IPI tax rate, but has not decided to withdraw the IPI high tax rate policy. During the construction of the Brazilian factory, JAC will continue to pay taxes at high IPI rates. Although the factory can enjoy a certain amount of tax exemption after it is put into production in 2014, the tax exemption can only benefit half of the estimated production capacity of the depot project.


The second reason cited by Jianghuai Automobile in interpreting the “unfeasibility of building depots” is that the real value of the Real devaluation of the US dollar has changed from 1.7:1 last year to 2:1 this year. Exchange rate fluctuations have caused a certain impact on JAC's project operations in Brazil.


Since then, within the Brazilian government to discuss the revision of the IPI policy issues, coupled with the call for the role of car companies, Jianghuai Brazil stopped building the shadow gradually dissipated. Today, the new factory has finally laid a foundation for investment and construction after experiencing the storm and will become an important step for Jianghuai's further expansion in Brazil.



Saucepans & Sauciers

We are professional on the Cookware production, saucepans, saute pan, cooking pan and so on.

We can meet your special requirement of the any cookware items.

Our cookware is hot selling in worldwide.

Welcome to sent the inquiry and check our quotation.


Red Finishing Saucepan42 Jpg2 Jpg

Saucepans, sauce pan, stainless steel saucepan, nonstick saucepan,cooking pan, Sauciers

Jiangmen Wellway Houseware Co.,Ltd , https://www.wellway-jm.com