A joint venture involving Taiwan's leading auto maker is preparing to open its first plant in China, officials said yesterday, despite recent cross-strait tensions.
South-East Motor Corp, a 50-50 joint venture between Taiwan's China Motor and the Fujian provincial government, is scheduled to launch the US$60.3 million plant on September 26, China Motor spokesman Lawrance Wu said.
The facility, located in the southeastern city of Fuzhou, will produce China Motor's new Freeca model and have an initial capacity to build 30,000 light commercial vehicles (LCVs) a year.
Southeast Motor Corp hopes to become the largest supplier of light commercial vehicles in China in two years, the spokesman said.
"The automobile demand in China will continue to grow. No one has any doubts over the unlimited market potentials in the mainland," Wu told AFP.
South-East Motor expects to sell 15,000 vehicles in China next year and double the volume to 30,000 in 2001 to become the leading LCV supplier in the mainland, Wu added.
The joint venture was established in 1996, making China Motor the first Taiwanese car maker and the only one allowed by Chinese authorities to operate in the mainland.
South-East Motor posted a 126.1 percent year-on-year rise in pre-tax profits in the first half, gaining NT$98.48 million (US$3.1 million) on a 7.3 percent increase in sales which amounted to NT$1.11 billion.
The opening of the plant follows tensions between Beijing and Taipei which flared after Taiwan President Lee Teng-hui said in July he wanted "special state-to-state" relations with China.
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