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(Agencies)
Updated: 2007-10-10 14:45

Chery Automobile, based in Wuhu city of the eastern province of Anhui, has bought the local Wuhu Shipyard and is restructuring it, the China Securities Journal reported.

Related readings:  Chery group matures into global auto player  Chery works on listing plan  China's Chery produces millionth car

"Chery expands its business scope by foraying into the very promising shipbuilding industry," a company official was quoted as saying.

"Moreover, the shipyard operations will support the prompt delivery of our auto exports, increasing exports and lowering inventory. Chery expects to double its exports in 2007 from last year to 100,000 cars."

The company has also previously said that it was building a new port in Wuhu, which sits along China's Yangtze river, to facilitate auto exports. A new plant that starts operation in October would help add another 250,000-300,000 units to its annual capacity of 400,000 units, the company said when it turned out its millionth car in August.