BUSINESS

Brazil Halts Work on BYD Factory Over Workers’ Living Conditions

Published: Dec. 25 2:06 a.m. GMT+8

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BYD’s factory in Camaçari on Nov. 17, 2024.

Brazil’s government has launched an investigation after 163 people working at a BYD subcontractor’s building site in Bahia were found to be living in harsh conditions.

The workers were immediately relocated and the site closed. BYD has terminated its contract with the subcontractor.

Officials from Brazil’s Ministry of Labor and Employment said the construction site dormitories and some work areas had been sealed off and work suspended. The ministry has scheduled a hearing on Thursday to discuss corrective measures and ensure compliance.

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Brazil is investigating poor living conditions for 163 workers at a BYD subcontractor site in Bahia, leading to the shutdown of the site and contract termination.
BYD has invested $489 million in Bahia for electric vehicle production, with plans to begin by 2025 and create 10,000 jobs in the first year.
Brazilian officials aim to ensure worker rights, while BYD reviews subcontractor compliance after previous issues with Chinese firms in Brazil.

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Who’s Who

BYD: BYD is a Chinese electric vehicle giant expanding into the Brazilian market since 2014. It has invested 3 billion Brazilian reais in constructing three factories in Camaçari, Bahia, for producing electric buses, passenger vehicles, and battery materials. BYD sold 70,000 new energy vehicles in Brazil by December 2024, dominating the EV market. The company plans to create 10,000 jobs by 2025 and aims to produce its first batch of vehicles by March 2025.

China Jinjiang Construction Brazil Ltd.: China Jinjiang Construction Brazil Ltd. is a contractor for BYD involved in a building site in Bahia, Brazil, where 163 workers were found living in harsh conditions. The investigation led to the termination of its contract with BYD due to failure to meet labor condition requirements. The workers were employed by this subcontractor and were relocated after authorities intervened.

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What Happened When

Mid-November 2024：: The investigation into the harsh living conditions of workers at a BYD subcontractor's building site in Bahia began

December 2, 2024：: President Luiz Inácio Lula da Silva met with Li Ke, BYD's executive vice president, accompanied by Brazil's labor and employment minister and the governor of Bahia

December 23, 2024：: BYD issued a statement detailing its review of working and living conditions for subcontracted employees and the termination of its contract with the subcontractor

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