A visiting official of China's First Automobile Works (FAW) said here Tuesday that the company was exploring the possibility of setting up a bus assembly plant in Harare that would cater for the southern African region.

Yan feng, vice president of the FAW import and export corporation, said the company's technical team was already in Zimbabwe to study the market.

Yan made the remarks while meeting with Zimbabwean President Robert Mugabe, who expressed gratitude to FAW for supplying 50 80-seater buses to Zimbabwe United Passenger Company (ZUPCO) to alleviate transport problems in the country's urban areas.

Mugabe said Zimbabwe looked forward to more business with the company.

"I am extremely happy that the buses have come and that they will continue to come," he said.

"I am also happy with the relations that we have with the company, and I hope we will continue to relate with the company ina meaningful way," he added.

Yan said their company had chosen Zimbabwe as the focal point in southern Africa because it was a friendly country.

"Zimbabwe and China have longstanding relations, and Zimbabwe is a friendly country," he said.

Zimbabwe and China enjoy good bilateral and trade relations that have seen the two countries cooperating in various areas.

Yan said the 50 80-seater buses would be used to provide transport in urban areas while his company would bring more buses to provide transport between cities in the country.

ZUPCO signed an agreement with FAW in December last year under which the Chinese company will provide 400 buses to Zimbabwe.

FAW, one of China's top automobile producers, made a new record of exporting 10,336 motor vehicles last year, a 251 percent increase from 2003.

Source: Xinhua