Chery to build Russia plant in 2009

Chinese automaker Chery Automobile plans to build a new plant in Russia's western enclave of Kaliningrad in 2009 to produce 200,000 cars per year, a regional government official said today.

Felix Lapin, the Kaliningrad region's economy minister, told reporters the company would invest $200 million in the plant, and its construction would begin in 2007 or 2008.

He also said the company planned to export some cars made at the plant.

Chery's sales in Russia jumped sharply to about 12,000 units last year from 1,700 units in 2005, with a majority of the models assembled by Avtotor, whose Kaliningrad plant also assembles vehicles for BMW AG, General Motors and Kia Motors.

Avtotor has said that Chery would build the new car assembly plant with an annual capacity of 150,000 cars on its territory.