Brilliance China Automotive has reached an agreement to produce light buses in North Korea.

The company has signed an agreement with the South Korean PMC Group to assemble two versions of the Jinbein Haise light bus from CKD kits at its plant in Nampho, a port city in North Korea. The facility is a 70:30 joint venture with the North Korean government.

According to China Automotive Review, Brilliance has signed a five year contract to assemble and sell 12,000 Hiase buses. Initially Brilliance will export coated bodies, parts and components and manage the assembly work itself. From 2008 exports to the facility will consist mainly of body parts and CKD kits.

This is Brilliance’s third overseas operation. It has a plant in Egypt that assembles Zhonghua Grandeur cars and a plant in Vietnam assembling Jinbei light trucks.

Brilliance will also work with PMC in South Korea to sell the Haise and Zhonghua sedans.