(Yicai) Jan. 26 -- Chery Automobile's South African subsidiary has agreed to acquire the local factory of Japanese car giant Nissan Motor.

Chery South Africa will buy the land, buildings, and related assets, including a nearby stamping facility, of Nissan's plant in Rosslyn by the middle of this year, the Yokohama-based company announced on Jan. 23. The agreement is subject to regulatory approvals and other conditions, it added.

Chery has not made any announcements regarding the deal yet.

"Nissan has a long and proud history in South Africa and has been working to find the best solution for our people, our customers, and our partners," said Jordi Vila, president of Nissan Africa. "Through this agreement, we're able to secure employment for the majority of our workforce, thereby also preserving opportunities for our supplier network."

Under the deal, most of Nissan's employees in Rosslyn will be offered positions at Chary SA on similar terms to their current conditions, the Japanese carmakers said, without revealing further details, such as the transaction value.

The Rosslyn plant went live in 1966. Serving as Nissan's only production base in South Africa, it produced the Navara, the NP200, and the NP300 Hardbody, among other models.

The sale aligns with Nissan's broader global restructuring announced last May, which includes cutting 20,000 jobs and reducing the number of factories to 10 from 17 by the fiscal year 2027. The firm is targeting operating profitability and free cash flow for its car business by the fiscal year 2026, which starts April 1, with total cost savings of JPY500 billion (USD3.2 billion) compared to the fiscal year 2024.

Nissan plans to continue serving South African customers through vehicle imports and distribution despite divesting its local manufacturing operations, according to the company.

Regarding Chery, acquiring Nissan's factory strengthens its already robust presence in South Africa, where it sold 2,505 units in November and 2,249 last month, ranking as the 7th best-selling passenger vehicle brand in the country.

Chery's global expansion strategy has been gaining momentum. Its overall sales rose 7.8 percent to 2.81 million units last year from 2024, with those overseas surging 17 percent to 1.34 million units.

Editor: Martin Kadiev