British luxury car manufacturer Jaguar Land Rover and Chinese automaker Chery Automobile have begun construction on a new manufacturing facility, as part of a CNY 10.9bn ($1.73bn) joint venture (JV) project, in east China's Jiangsu province.
Chery Automobile's partnership with Jaguar Land Rover marks the Chinese automaker's entry into international market and strategic development.
The new JV, named as Chery Jaguar Land Rover Automotive, is aimed at creating a new partnership brand to assemble vehicle models customised particularly for the Chinese market, in addition to the marketing and distribution.
Scheduled to begin operations in July 2014, the new plant is expected to manufacture about 77,000 Land Rover sports utility vehicles (SUV), 23,000 Chery cars and 30,000 units of Jaguar vehicles per annum by 2016.
Jaguar Land Rover chief executive officer Dr. Ralf Speth, Chery Automobile chairman and chief executive officer Yin Tongyao said a joint statement: "Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers."
The JV project also includes construction of a new research and development centre as well as an engine manufacturing plant.
