Bahia could lose JAC Motors factory to Rio.

The state of Bahia is about to lose the JAC Motors plant, an investment worth R$1 billion; the Chinese automaker buried the body of a J3 model in a 'time capsule' almost two years ago on the land where the factory was to be built in Camaçari, but is now considering transferring its production unit to Rio de Janeiro; the factory was announced in November 2011 and the foundation stone was laid a year later; the area had only undergone earthmoving until then.

July 31, 2014, 21:51 pmUpdated May 27, 2019, 09:03 AM

The state of Bahia is about to lose the JAC Motors plant, an investment worth R$1 billion; the Chinese automaker buried the body of a J3 model 'in a time capsule' almost two years ago on the land where the factory was to be built, in Camaçari, but is now considering transferring its production unit to Rio de Janeiro; the factory was announced in November 2011 and the foundation stone was laid a year later; the area has only undergone earthmoving so far (Photo: Romulo Faro)

Bahia 247 - The state of Bahia is about to lose the JAC Motors plant, an investment worth up to R$1 billion. The Chinese automaker buried the body of a J3 model in a 'time capsule' almost two years ago on the land where the factory was to be built, in Camaçari (Salvador Metropolitan Region), but is now considering transferring its production unit to Rio de Janeiro.

According to an article in the newspaper O Estado de São Paulo, the company initially considered a plant in Rio solely for trucks, but negotiations progressed to the complete transfer of the production line, including automobiles. JAC executives will be in China next week to obtain approval from headquarters for the change. If the new project is approved, the announcement should occur in mid-August.

Four sources interviewed by the newspaper confirmed the negotiations. However, the SHC group, owned by Brazilian businessman Sérgio Habib, which holds 34% of JAC's shares in Brazil, denies that it is considering the transfer. The Rio de Janeiro State Secretariat for Economic Development declined to comment.

The factory in Bahia was announced in November 2011, and the groundbreaking ceremony took place a year later. Since then, the area has only undergone earthmoving.

The Bahia State Secretariat for Industry, Commerce and Mining says the company is awaiting the release of financing from the Bahia State Development Agency (Desenbahia) to begin civil works.

According to the SHC group, they expect investment from their Chinese parent company to select a construction company and begin the project – and this would be the reason for Habib's trip to China. If the transfer of the factory to Rio is confirmed, JAC will likely have to reimburse the Bahia government for tax incentives already granted and bear the losses from services performed so far, estimated at almost R$ 15 million.