Chinese carmakers seeking to establish manufacturing operations in Europe are turning to Spain and France, as a shortage of available factories limits their options in Italy.

Italy’s industry minister, Adolfo Urso, told lawmakers in Rome that Chinese manufacturers were searching for ready-to-operate facilities as the European Union considers introducing minimum local-content requirements for electric vehicles sold within the bloc.

“They are touring Europe and what are they asking for? A turnkey factory,” Urso said.

Representatives from Chinese manufacturers, including BYD’s European adviser Alfredo Altavilla, have visited Italian industrial sites and held meetings with the government. However, they have yet to identify suitable facilities, according to the minister.

Altavilla told Reuters last month that BYD wanted to acquire and fully own a European factory rather than share production capacity with local partners. The company has been focusing its search on Spain and France.

Italy’s limited availability of suitable sites reflects the position of Stellantis, the country’s only major automaker. Urso said the group had kept its Italian factories open and was pursuing production partnerships with Chinese companies instead of selling its plants.

The availability of existing manufacturing facilities is becoming increasingly important as Chinese automakers assess how to expand their European presence and respond to potential regulatory changes affecting electric vehicle production and local sourcing.