TAIWAN'S largest car-maker, China Motor Corp, has embarked on the first step of an expansion plan in the mainland with the announcement of a joint venture to produce vans in Fuzhou.
A company spokesman said the group would be concentrating on market opportunities in the southeast coastal region, but planned to expand into the rest of the mainland market at a later stage.
Vicky Huang Hsing-yen said the company had not set a target for its mainland investment, but would make an initial commitment of US$16 million for the joint venture with Fuzhou Automobile Factory.
She said China Motor would hold a 50 per cent stake in the new company, with the mainland partner holding the remaining 50 per cent.
She said that any future investment would depend on the performance of the van joint venture, but the company was not restricting itself to the car market.
China Motor is a diversified conglomerate with a wide range of interests, including textile manufacturing and financial services.