Authorities in Brazil said Friday they are probing Chinese auto giant BYD and one of its contractors for suspected "trafficking" of Chinese workers building a factory in the South American country.

Federal prosecutors in Brazil are weighing possible criminal action after labor inspectors found 163 Chinese workers "in slave-like conditions" at the construction site in the northeast state of Bahia, a government statement said.

The workers, employed by BYD contractor Jinjiang Open Engineering, were viewed as "victims of international trafficking for the purpose of labor exploitation," said the statement...

On Thursday, BYD and Jinjiang were quizzed by Brazilian government ministries, which said "the companies committed to collaborate in protecting the rescued workers."...

Inspections carried out since November found "degrading working conditions" at the site, including beds in workers' accommodation lacking mattresses, and one bathroom per 31 workers, an MPT statement said.

The workers, who spent long hours under Brazil's sun, had "visible signs of skin damage," the statement said...

A Jinjiang representative told AFP on Friday that the company would hold a press conference in Brazil.