Chinese commercial vehicle maker Beiqi Foton Motor Co has signed a Memorandum of Understanding with the government of Cameroon to invest $500 million in a plant in the Southwestern port city of Kribi, auto news website gasgoo.com reported on Monday.

The factory will start operating in July 2013, with an annual production capacity of 5,000 trucks and vans, according to the country's Minister of Industry.

According to the memorandum, the first phase of the plant will focus on assembling auto parts imported from China. Local raw materials from the Mbalam Iron Ore project will be used extensively in the second phase.

The factory is expected to create 8,000 jobs.