Chery Auto has signed an agreement with the biggest automotive logistics provider in China – Anji Automotive Logistics – for vehicle transport and related logistics activity there that also includes tie ups with Dalian Port and Beijing Changjiu Logistics.
Anji Automotive Logistics, a wholly owned subsidiary of Shanghai Automotive Industry Corporation, focuses on finished vehicle and parts logistics, as well as harbour services and relevant logistics service planning, with 50 distribution centres in the country.
Logistics cost and strategy considerations were behind Chery Auto’s decision to build a new plant at the port city of Dalian in northeast China. The $688m plant will start manufacturing for both the domestic and overseas markets from June this year, with an annual production capacity of 200,000 vehicles. Logistics support will now be provided by Anji Automotive Logistics and Beijing Changjiu.
The plant is the first domestic plant that Chery has built outside its home in Wuhu, Anhui province, further south, and the company believes that, as well as export advantages to other countries, being in Dalian will give it better access to the market in northern China including Beijing, Tianjin, Hebei and Shanxi.
Dalian Port and Beijing Changjiu will also establish a joint venture with Chery in Wuhu Economic Development Zone in Anhui Province to provide vehicle and vehicle parts logistics services to the carmaker.
Chery has an annual production capacity of 450,000 vehicles at its plant in Wuhu and is aiming to increase this output to 1m units by 2012.