Lifan's CKD plant in Uruguay will resume engine manufacturing and vehicle assembly in the next few weeks.
The plant will produce around 1,000 X60s for Brazil.
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The Lifan Motors Uruguay head Kevin Liu said: "We hope our plant can meet the demand from the Brazilian market which has great potential.
The automaker estimated it would have about 100 workers at the two plants by the end of May.
The plant in Uruguay is located in San Jose, Montevideo and started production in April, 2010. It is was the Chinese company's sixth overseas CKD plant after Vietnam, Russia and other markets, and was intended to supply South American countries Brazil, Argentina, Uruguay and Paraguay.
Average sales to Brazil reached 5,000 units but production was stopped in December 2015 due to the depressed market though there have been recent signs of recovery. Lifan said sales had now recovered to the point it could justify restarting output.
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