Some 54 major manufacturing companies from China are studying market expansion in Indonesia, Antara reported on Wednesday (16/5/07).
The companies, which deal with the automotive and component, machinery, heavy equipment, communication and technology, and electronics industries, will take part in a China Machinery and Electronics Trade Exhibition to be held in Jakarta on May 24-26.
Among the companies are carmakers Chery Auto Co, Great Wall Auto and Foton, tractor producer Liugong and YTO and printing machine producer Ningbo Haitan Plastic Machinery Group.
Director of the China Council for Promotion of International Trade Liang Haiguang said Foton plans to build a truck factory in the country in cooperation with PT Indobuana Autoraya.
Meanwhile Geely Holding Group, China's largest private carmaker, said it has signed an agreement with Indonesia's PT IGC International to set up a car assembly line, XFN-ASIA reported.
It did not provide any further details of the deal in a statement posted on its website.
State media reported earlier that the assembly plant will produce 30,000 cars annually, with 2,000 units expected to be sold in Indonesia by the end of this year.
IGC, which is jointly owned by Geely and Indonesian and Malaysian partners, will sell sedan cars with engine capacity of 1,300 cc, 1,500 cc and 1,600 cc at cheap prices, IGC chief commissioner
Suhaely Kalla said, Antara added.