A ground breaking ceremony has been held at the site of the JAC joint venture plant in Brazil.

The US$250m plant will cover 4.7m sq m. Local firm SNS will hold 66% shares while JAC will have the rest.

Annual capacity is 100,000 units and the plant is expected to create about 3,500 direct jobs and 10,000 indirectly. Facilities will include four manufacturing sections, a test track, a research centre and an emissions lab.

Bahia governor Jaques Wagner said he hoped the joint venture would encourage other Chinese companies to come to his state.

JAC launched its first car to Brazil in 2011 and has since shipped 37,725 units, making it China's top vehicle exporter.