Chinese group Ningbo Tuopu has decided to build its first auto parts plant in Brazil in Guarulhos, in the metropolitan region of São Paulo, the group said on Thursday, quoted by the Investe São Paulo news agency.

The plant represents an investment of 30 million reais (about US$9.1 million) to produce suspensions, gearboxes and other parts for companies that build cars in the state of São Paulo, as well as in Brazil and Latin America in general.

The plant is due to start production in the second half of 2019 and is expected to produce 485,000 parts per year.

Flávio Renato M. de Passos, director-general of Ningbo Tuopu do Brasil, said that the Guarulhos area was chosen “because it allows close proximity to suppliers and customers, and also has abundant skilled labour.”

The decision to set up a factory in Brazil followed a request from General Motors, one of the main clients of the Chinese group in other countries, according to information provided by Investe São Paulo.

The Ningbo Tuopu Group is a privately held company founded in 1983 that is listed on the Shanghai Stock Exchange and manufactures car parts such as suspensions, gearboxes and power steering systems.

Investe São Paulo – Agência Paulista de Promoção de Investimentos e Competitividade, linked to the Office for Economic Development, Science, Technology and Innovation of the State of São Paulo, is a gateway for companies that intend to settle in the State or expand their enterprises.