Chinese invest in manufacturing plant in Kenya

05/04/2011 - Kenya property & investment news Posted by Neil King
Chinese invest in manufacturing plant in Kenya

A Chinese vehicle manufacturer is to invest in Kenya with the development of its assembly plant.Foton will set up the 1.2 billion shilling plant in Kenya, partly to avoid paying a 25 per cent import duty on low-end products, Business Daily Africa (BDA) reported.The plant will produce around 10,000 units of movers, tippers, buses, pick-ups and light commercial trucks each year.According to BDA, demand for these vehicles has risen over recent years due to the increased level of activity in the construction and trade sectors.The plant will make it one of the biggest foreign direct investments in Kenya by a Chinese company.General manager at Foton East Africa Calvin Guo told the news source: "Chinese vehicles are generally competitively priced by that aside, we shall invest heavily in service, parts and distribution network to gain market share."More than 100 new jobs will be created at the assembly plant, which should be completed by May 2012.