China’s Chery Automobile plans to build a US$400 million auto factory in Brazil, the Brazilian news agency Estado reported. Chery will build the factory in Jacarei, about 80 kilometers from the city of Sao Paulo, according to a memorandum of agreement signed between company president Yin Tongyue and the state of Sao Paulo’s investment promotion agency, The Wall Street Journal reported. The plant will begin operations in 2013 with an initial capacity of 50,000 automobiles a year. Production will eventually be ramped up to 150,000 vehicles. Sao Paulo’s investment promotion agency said two more automakers plan to build factories in the state.