TAIPEI (Taiwan News) – Master Transportation Bus Manufacturing Ltd. signed a memorandum of understanding (MOU) Tuesday (May 21) with Paraguay to manufacture electric buses in Taiwan’s only diplomatic ally in South America.

The ceremony was attended by Paraguay President Santiago Pena, who was visiting Taiwan to attend Monday’s (May 20) inauguration of President Lai Ching-te (賴清德) and Vice President Hsiao Bi-khim (蕭美琴). Pena visited a Master Bus factory in Wugu District, New Taipei City in July 2023, per CNA.

The company sent delegations to Paraguay four times to explore the local market. According to the MOU, it will first export its buses to the South American country before building a plant that will employ 2,600 local workers.

In return, the government of Paraguay will assist the company in finding a location, basic infrastructure, and local suppliers. Master Bus will also receive tax breaks and help with the training of workers, the report said.