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SAIC sets up production in Thailand

SAIC sets up production in Thailand

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Shanghai Automotive Industry Corporation (SAIC) has signed a deal with Thailand's Charoen Pokphand Group to set up an assembly plant in the land of thousand smiles. The investment will cost SAIC 1.8 million yuan in the initial stage.

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SAIC will hold 51% stake in the joint venture while Charoen Pokphand Group will hold the rest of the 49%. Production will begin in 2014 with a minimum capacity of 50,000 units per year. With the investment, SAIC hopes to expand its business into the Association of Southeast Asian Nations.

 

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The first model to be produced in Thailand will be the MG 6, which is also being manufactured in the UK besides China. From a cost point of view, it is more economical to set up plants in foreign countries than to export, probably due to savings in shipping expenses.

 

The MG 6 is based on the Roewe 550 sedan, which is in turn based on the Rover 75, a model dating back in 1999. The 4.6m long MG 6 is powered by a turbocharged 1.8-litre k-series engine producing 160bhp. All models are equipped with a 5-speed manual transmission.

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