(Yicai Global) Dec. 11 – State-run car firm SAIC Motor Corp. [SHA:600104] has commissioned a USD1 billion factory in Thailand through its joint venture with industrial giant Chia Tai Group Co.
The 700,000 square meter-plant will produce up to 100,000 Morris Garages (MG) cars per year, Xinhua News Agency reported on Dec. 9.
The plant represents a perfect connection between Thailand's Eastern Economic Corridor and China's Belt and Road initiative, said Thailand vice minister Somkid Jatusripitak. Chinese enterprises have been developing rapidly in Thailand in recent years, not only driving economic exchange, but also promoting relations between the countries.
SAIC Motor and Chia Tai Group set up the joint venture with an initial investment of CNY1.8 billion (USD271.9 million) in 2012.
Founded in 1924 in Birmingham, UK, MG went bankrupt in 2005 due to high production costs and poor sales. China's Nanjing Automobile Group bought the brand before merging with SAIC Motor in 2007.