Chinese carmaker Chery Automobile plans to set up a joint venture with an Israeli company in its attempt to explore the European and U.S. market.

The 5.8 billion yuan (743.6 million U.S. dollars) joint venture, to be located in east China's Anhui Province, is expected to produce 150,000 vehicles a year, including Chery's first high-end sedan.

Wuhu Chery Automobile Investment Co. Ltd., a subsidiary of Chery, will provide technology and land to the new company, in which it holds a 55-percent stake.

Quantum LLC, a U.S. subsidiary of Tel Aviv-listed Israel Group, will acquire a 45-percent stake for 225 million U.S. dollars.

To help raise the wind, it will pay a deposit of another 180 million U.S. dollar.

Annual output of the joint venture will include 105,000 sedans and 45,000 sport-utility vehicles (SUVs).

The project has been submitted to the Chinese government for approval.

Chery, a flag-bearer of Chinese indigenous brands, became China's seventh largest automaker and fourth largest producer of sedans in 2006, with sales of 305,200 vehicles, including 272,400 sedan cars.

It plans to double its exports this year, encouraged by last year's exports of 50,000 vehicles.

Source: Xinhua