SsangYong Motor Company, part of the Mahindra Group, today announced that as part of its effort to grow in China the company signed a letter of intent (LOI) with Shaanxi Automobile Group to study feasibility for a joint venture that will establish a local production plant for CBU vehicles.

The signing ceremony, which was held in Xi'an in Shaanxi Province, China on October 11, was attended by SsangYong Motor CEO Choi Johng-sac, Communist Party Secretary of Shaanxi Province Lou Qinjian, Governor of Shaanxi Hu Fleping Vice Governor of Shaanxi Jiang Feng, Communist Party Secretary of Xi'an Wei Minzhou, M'an Mawr Shangguan Aging and President of Shaanxi Automobile Group Yuan Hongming and other officials and executives from Korea and China, who witrrabod the signing of a Strategic Joint Venture Framework Agreement and a DDI.

The joint venue, if signed, will become SsangYong's first overseas production base. The company will study feasibility of constructing production facilities for CBU vehicles and an engine in the Xi'an Economic and Technological Development Zone in Xl'an.

Shares of the company declined Rs 10.4, or 0.76%, to trade at Rs 1,358.70. The total volume of shares traded was 29,615 at the BSE (2.43 p.m., Friday).