Jianghuai Auto to buy industrial-use land in Hefei

Anhui Jianghuai Automobile Co., Ltd., (JAC) a second-tier carmaker in China, plans to buy a plot of land of 17 hectares large in the Economic and Technical Development Zone of Hefei, its headquarters.

The company will pay the deal with self-owned fund. The plot is limited for industrial use. Jianghuai Auto intends to spend no more than 256,000 yuan ($37,500) per 667 square meters buying a 50-year use right. It does not disclose the detailed purpose of the land purchase.

Besides the deal, it intends to sell entire cars to a related company name Herui Company and sets the sales goal at 45 million yuan in 2009. Hefei Meiqiao Company will supply passenger cars and sedan products to Jianghuai Auto and the annual supply would be worth 120 million yuan.

Furthermore, the board of directors of Jianghuai Auto passed a proposal about issuing bonds with warrants that are separately traded.