Jianghuai Automobile Co., along with state-owned Chinese machinery trade firm China National Machinery Import and Export Corp., purchased a 51-percent stake in Kazakhstani automaker Allur Group.
The agreement will allow it to build vehicles for Kazakhstan and other countries in Central Asia, JAC said, without revealing the price of the deal.
After the deal, JAC looks to invest $1.1 billion to increase Allur's annual production capacity to 100,000 vehicles from 64,000 in 2018. Products will include electric vehicles and electric buses, Allur Group said.
Allur Group, based in Kostanay in northern Kazakhstan, is the largest auto manufacturer in Kazakhstan. In 2014, it started assembling cars for JAC with kits imported from China.
JAC, headquartered in the east China city of Hefei, produces sedans, crossovers, vans as well as light and heavy-duty trucks.
In addition, the state-owned automaker assembles EVs for domestic startup Nio. It has also established a joint venture with Volkswagen Group to build EVs for the Seat brand in Hefei.