According to a report in Brazil’s “São Pauloâ€, the Brazilian subsidiary of Foton Motor will build a factory in Rio Grande do Sul, in the south of Brazil. The state government also hopes to become a partner of Foton Truck Brazil by way of equity participation.
According to the report, the Governor of Rio Grande do Sul is consulting with Foton Brazil to purchase its shares. Foton’s plant in Brazil will be built in Guayba, near the port of Allegri, the capital of the state. Experts believe that this is a rare state government share participation.
To facilitate the entry of Foton Motors, the Rio Grande do Sul state has passed a law encouraging the production of trucks. According to the new law, the government can invest up to 48 million reals to purchase shares in Foton, which is equivalent to 20% of the total loan amount. . In addition, the state government also provides land, official funding, and tax incentives for factories. The state government believes that the arrival of Foton will promote new investments in China.
The factory site in the Foton Motor Project is land that was provided to Ford Motor Company in the 1990s. Ford eventually gave up building factories because of the state's adjustment of incentives, but the state's claim was that the State of Bahia in the north gave more favorable policies.
According to Foton’s Brazilian company, the company is currently waiting for the environmental permit necessary for the construction of the factory and it is expected that this permit will be issued this month. The factory's production capacity is expected to be 21,000 vehicles per month, with the goal of occupying 5% of the Brazilian market within 7 years and becoming an export platform.
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