Feb. 23, 2012 (China Knowledge) - Zhejiang
Geely Holding Group, the parent co of Geely Automobile Holdings Ltd<0175
>, has signed a cooperation agreement with GB Auto, Egypt's biggest listed automobile assembler to set up a complete knock-down (CKD) plant in the country.
The Egyptian company said it would begin locally to assemble Geely cars in the third quarter of this year by using kits supplied by the Chinese company, with two models of Panda and Emgrand 7 being introduced in the second quarter.
The move is expected to expand Geely's market in North Africa, said analysts.
Geely and GB Auto hope to increase the annual vehicle output capacity from initial 30,000 units to 50,000 units.
Last year, GB Auto had a market share of 27.7% in Egyptian passenger vehicle market, dominating the market for the seventh consecutive year. Hong Kong-listed
Geely exported 38,000 cars in 2011, reflecting a year-on-year jump of 76%, sources reported.