Great Wall Motors Co. Ltd (GWM) of China has agreed to buy the Iracemápolis factory in the southeastern Brazilian state of São Paulo, where Daimler AG of Germany once made motor vehicles, the China Daily reports.

The Chinese state-run newspaper says the purchase agreement was signed on Wednesday, and that GWM expects to take possession this year.

GWM will increase the production capacity of the factory to 100,000 vehicles a year, the report says.

It quotes GWM Vice-president Liu Xiangshang as saying the factory will stimulate manufacturing in Brazil, and help his company reach its goal of selling 4 million vehicles a year worldwide by 2025.

GWM will invest over 5 billion yuan (about US$770 million) over five years in its Brazilian operation, the China Daily says.

In a separate report, a Brazilian newspaper, Globo, quotes an executive of GWM’s local subsidiary, José Duan, as saying the company hopes to create 2,000 jobs for Brazilians at Iracemápolis in the next two years.