CHINA: Chery inks Iran assembly deal

Chery will open a $US370m (EUR270m) plant in Babol in northern Iran with local automaker, Khodro  and Canadian investment firm Solitac, the Chinese automaker was reported to have said on its web site.

Chery reportedly said it would own 30% of the Iranian factory, with Khodro holding 49% and Solitac 21%.

The factory will assemble Chery's compact S21 sedan, also known as the QQ6, from kits supplied by Chery for sale in Iran and surrounding countries, the statement cited by the Associated Press (AP) said.

The venture "can strengthen Chery's competitiveness in Iran or even in the entire Middle East market so as to build up Chery into a 'Chinese brand in the world market'," Chery president Yin Tongyao reportedly said in the statement, dated Friday.

Chery last month inked a deal with Chrysler to make cars for export to the United States and other markets and, last week, agreed a deal with Fiat Group to produce Fiat and Alfa Romeo models for sale in China, AP noted.

Chery also assembles vehicles with partners in Russia, Ukraine, Egypt, Uruguay and Indonesia, the report added.