Chinese automaker Geely said Wednesday it will begin assembling cars in Egypt this year with a local partner, marking its latest push overseas as domestic demand hits the brakes.

Geely Holding Group, which owns Swedish nameplate Volvo, will work with GB Auto to assemble passenger vehicles for distribution across North Africa, the Chinese company said in a statement.

The production line will have an initial capacity of 30,000 units a year, the statement said. Financial details were not provided.

The move highlights the growing global ambitions of Chinese automakers such as Geely, which bought Volvo from US auto giant Ford in 2010 for $1.5 billion, less than a quarter of what Ford paid for the company in 1999.

Geely said in December that it was aiming to start selling its Emgrand EC7 sedan through a network of 30-40 dealerships around Britain by the end of this year, as it seeks to boost its presence in developed markets.

The ambitious car maker already exports vehicles to more than 40 developing countries in eastern Europe, Latin America, the Middle East, Africa and Southeast Asia.

It also operates assembly plants in several countries including Russia and Indonesia.

Great Wall Motor on Tuesday became the first Chinese automaker to open an assembly plant in Europe, aiming to produce 50,000 vehicles per year for the whole continent in northern Bulgaria.

The overseas push by Chinese companies comes as sales in the world's biggest auto market hit the brakes after Beijing rolled back sales incentives and some cities imposed tough restrictions on car numbers to ease traffic congestion and pollution.

Nationwide sales rose just 2.5 percent in 2011 to 18.51 million units compared with an increase of more than 32 percent in 2010.

Mazda to raise $2.9 bn as it eyes emerging markets
Tokyo (AFP) Feb 22, 2012 - Japan's Mazda Motor said Wednesday it planned to raise $2.9 billion to boost its presence in emerging economies as it takes a double hit from the strong yen and falling demand in key developed markets.

The announcement came weeks after the company, Japan's fifth largest car maker, said it expected to lose 100 billion yen ($1.25 billion) in the year to March, a fourth straight annual loss.

Japanese automakers have come under pressure from the strong yen, which last year hit record highs against the dollar, making exports relatively more expensive overseas and cutting the value of repatriated earnings.

Mazda said it would raise up to 162.8 billion yen by issuing new shares while also taking out subordinated loans of 70 billion yen from various banks. The loans have higher interest rates but are payable only after satisfying other debts.

The firm said it would use the new cash to build factories in Mexico, Russia and in Southeast Asia.

It will also strengthen its safety and environmental technology, while improving its corporate structure.

"The company seeks to strengthen its financial position to secure the funds for growth," a company statement said in part.

It will "push through fundamental structural reforms so that the company may realise a future of steady growth and profitability even in an environment with a strong yen," it said.

Earlier this month Mazda reported a third-quarter loss of 72.97 billion yen and said it was on course for an annual loss of 100 billion yen because of the currency's rise and low demand in debt-afflicted Europe.

It was also hurt by factories being shuttered at home following the March 11 earthquake-tsunami while severe flooding in Thailand hammered production.

At the Tokyo Stock Exchange, Mazda tumbled more than 14 percent on Tuesday after media reports of the plan.

But its shares rebounded 1.38 percent to 147 yen on Wednesday, before it confirmed the plan.