Peru trying to lure BYD auto plant with industrial park incentive

LIMA (Reuters) – Peru’s president met with Chinese electric vehicle maker BYD (SZ:) on Wednesday, inviting executives to set up shop on the Andean nation’s Pacific coast where another Chinese firm is building a massive port to facilitate trade between the two countries.

President Dina Boluarte told the executives that if BYD were to build a auto assembly plant in Peru, it would benefit from the Chancay port under construction by Cosco Shipping Ports, set to open in November, according to a government statement.

The president noted the government will build an industrial park either in Chancay or in Arequipa, some 620 miles (1,000 km) to the south just off the Pacific coast.

“In either of those places, that’s where the vehicle assembly industry could be setting up,” said Boluarte.

China has become the largest investor in Peru in recent years, and is the top buyer of the nation’s . 

“Instead of bringing copper and lithium from Peru, they should come to Peru to set up their assembly industry,” she said, adding that the government would offer zero tariffs to encourage more local investment.

Peru is also weighing an agreement with China to replace the nation’s public transportation with electric models in the next three to four years, according to the statement.