Israel Corp plans more investment in Chery Quantum

Shanghai, July 2 (Gasgoo.com) Israel Corp, one of Israel's largest holding companies, said yesterday that its board has approved a plan to inject another $334 million in Chinese auto venture Chery Quantum, media reported.

Chery Quantum Auto Co., Ltd. is a 50-50 joint venture formed in 2008 between China's largest independent carmaker Chery Automobile and Quantum LLC under Israel Corp. The JV intends to develop Western-standard vehicles for China's domestic market as well as for export. Israel Corp. now holds 50% of Chery Quantum.

Israel Corp said its planned additional investment in the Chery venture will be made in four payments between 2011 and 2013. Israel Corp also said on Thursday it was considering a public bond offering, according to its statement to the Tel Aviv Stock Exchange (TASE).

Chery Quantum Auto will locate its 150,000-vehicle project, including workshops for pressing, welding, painting, and general assembly, in Changshu, a fast-growing city in the eastern Chinese province of Jiangsu.

The project will mainly make high-end products for overseas market. Through the cooperation with Quantum, Chery Automobile hopes to march into Europe and the U.S. and raise its image both at home and abroad.