BEIJING - Chinese vehicle maker Foton Motor will build its sixth overseas assembly plant in Colombia, said the company on Friday.
With an initial investment of around $4 million calling for 400 new jobs and an annual production rate of 5,000 light trucks, the assembly plant is to be completed by 2012, according to the company.
Foton Motor, a subsidiary of Beijing Automotive Industry Holding Co, will supply the local and regional markets by the new factory.
The company said Colombia was chosen because of its fluid commercial relationships with neighboring countries, its unique geographical location between North and South America, the strong performance of the Colombian economy and its growing auto sector.
"The decision to build an assembly plant in Colombia is proof that the country is increasingly becoming an investment destination in Latin America. We are pleased by this show of confidence expressed by Foton," said Proexport President, Maria Claudia Lacouture.
Foton Motor has 11 assembly plants in China's mainland and five more overseas.
Colombia is the fifth-largest auto maker in Latin America. With a GDP of $244 billion, the country is the fifth largest economy in Latin America.