CARACAS -- Chinese bus maker Yutong's new factory will be inaugurated in western Venezuela in October, said Haiman El Troudi, Venezuelan minister of land transportation Friday.

According to El Troudi, construction of the factory, designed with a capacity to assemble 3,500 buses per year, is progressing smoothly in state of Yaracuy, with 86 percent of building work being done. The new facility will have eight assembling posts, two buildings, a parking lot and a test ramp for the buses.

"The total investment in this plant along with our Yutong partners has been of $675 million and will generate 1, 650 jobs for the citizens of this area," said the official, who disclosed that 40 people have been recruited and will be sent to China to receive professional training from Yutong soon.

Upon completion, the new factory will assemble three types of buses not only for Venezuela's needs but also for Yutong's clients in Latin America and the Caribbean.

President Nicolas Maduro in July approved the plan for creation of a joint venture between his government and Yutong to set up its most "modern" plant in Latin America.

So far, about 5,000 Yutong buses have been exported to Venezuela for services in 80 urban routes in the last 36 months.