The government of the northeastern Spanish area said that China's biggest home-grown car manufacturer Chery Automobile Co. is planning to set-up a plant in Catalonia.

While talking to media, Jose Montilla, the head of the regional government of Catalonia, said, “Catalonia is the region best positioned to host the Chinese giant.”

Discussions over the deal between Chery and Catalonia started September 2009, but Montilla met with the chief of the firm, Yi Yaontong, “to talk about the arrival of the Asian auto manufacturer in Catalonia.”

According to the statement issued, they decided to begin drawing up a study to be approved by the company’s board on the economic and financial viability of setting up (the plant) in Catalonia.

The media reports said that the plant would create 3,000 jobs directly and around 10,000 indirectly in the country, where jobless rate has reached to over 20 percent.

The statement added that the plant would in completed in 2012and the first models would in opened by 2015, targeting the European and Mediterranean markets.

Meanwhile, the Chinese company also received the chance to open the plant in Italy or Turkey.

Chery Automobile accounts for 7.5 percent of the gross domestic product of Catalonia, where it employs 110,000 people.