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Fiji's Attorney General says a South Korean company's plan to manufacture electric cars in Fiji could reduce the country's reliance on fuel.

The company, C and T, makes electric cars and golf carts, and recently won a contract to supply cars for next month's Beijing Olympics.

It's looking for investors for a new assembly plant for electric cars, in Fiji.

Attorney General Aiyaz Sayed-Khaiyum says the investment could bring in export dollars to Fiji.

"It also has the potential of an export market, because we have very competitive labour rates particularly in comparison to Australia and New Zealand and we are only about three or four hours away from Australia and New Zealand.

"So it has the potential to also earn us some foreign dollars too," he said. ABC