China approved Israeli firm to enter joint venture with China's Chery

Israel Corp. will invest $225 million through its subsidiary Quantum for a stake in the joint venture
 
Israel Corp., an Israeli holding company with stakes in chemicals and shipping, won Chinese government approval to set up a carmaker with China's Chery Automobile Co.
 
The permission for the joint venture came last week, almost a year after the company applied for approval. Statement issued by China's official state media said that China’s Chery Automobile Co. plans to set up a car manufacturing joint venture with holding company Israel Corp.’s  U.S. unit, Quantum LLC.
 
Chery is China's first automaker to assemble cars abroad. It is based in Wuhu, in Anhui province, and is owned by the municipal government. Chery has production agreements with partners in Iran, Malaysia, Bangladesh and Argentina.
 
The planned joint venture will likely produce a few models, including some higher-end automobiles.
 
Quantum will take a 45% stake in the venture, with the rest to be held by Chery, according to the reports, which cited an announcement from the government of Wuhu, Anhui province, where Chery is based.
 
Israel Corporation president and chief executive Nir Gilad described the initiative as a continuation of the company's investments in the Far East and varied areas of activity.
Gilad said the agreement culminates the vision of the board, headed by Chairman Idan Ofer, to develop operations in the Far East and other countries.

Israel Corp. will invest $225 million through its subsidiary Quantum for a stake in the venture. The Israeli firm will also provide guarantees for about $180 million in financing for the first stage of the initiative.

This is the second project involving a joint venture between an Israeli company and a state-owned firm in China. Last year Zim agreed a deal to establish and operate about 18 cargo-train terminals.