China's Chery Automobile Co Ltd is planning to spend three billion yuan (US$422.32 million) for acquiring a manufacturing plant in Russia, according to Auto Biz Review.

The car maker would buy a plant from Russia's SOK Group, the Beijing-based automotive magazine said. The plant assembles vehicles for South Korea's Kia Motors Corp with an annual capacity of 300,000 units.

The report also said Chery is considering a tie-up with Ukraine Auto Group in a bid to clear the way of possible political opposition from the Russian government as well as for better management.

The move is widely regarded as a short cut for Chery to resume exports and strengthen market position in Russia after it issued regulations that lifted the imports threshold and the requirements for setting up new plants.

(Shanghai Daily March 14, 2008)