The state-run Chery _ Qi-Rui in Chinese _ is based in Anhui, west of Shanghai. It is the fifth-largest carmaker on the mainland, and has set up a plant in Indonesia to produce several models under the Chery brand and take advantage of free trade deals.

Apart from the proposed investment in automobile production, CP Group yesterday also outlined its 2008 investment plan in food and food packaging.

According to Adirek Sripratak, chief executive officer of Charoen Pokphand Foods (CPF), CP Group's listed flagship, CPF will invest about 5-6 billion baht next year to expand existing overseas businesses in Russia, India, Malaysia and the Philippines.

In Russia, the company plans to double the capacity of its animal-feed plant to 400,000 tonnes in 2008. CPF plans to expand its livestock ventures in India to cover more regions such as Pune, and to grow its fish business in Vietnam.

According to Mr Adirek, the company may invest in the cereal business in Ukraine with an initial investment in animal feed like it did in Russia. Production would be about 200,000 tonnes per year, he said.

The venture in Ukraine is expected to be finalised next year and kick off in 2009. CPF expects 2008 sales to rise 10% as consumer prices increase in Thailand.

The company's sales were estimated at about 135-140 billion baht at the end of this year, up 8-10% from a year earlier. Its ventures in foreign countries currently contribute about 20% of the group's revenue, with exports accounting for 20% and domestic operations for the remaining 60%.

''CPF's performance is expected to be brilliant next year, as the poultry and pork prices are expected to see a continue rise until next year after a fall in the last 14-19 months,'' he said.