Shanghai GM (Shenyang) Norsom Motors, GM China's joint venture with SAIC and Shanghai GM in Shenyang, has broken ground for its new manufacturing facility.

Located in Shenyang's Auto City Industrial Park, the new facility represents an investment of CNY7bn (US$ 1.09bn). It will have an annual production capacity of 300,000 vehicles and 450,000 engines following start of operations in 2014.

The new plant covers an area of nearly two square kilometers. It will include press, body, paint, general assembly and powertrain shops as well as support facilities.

Kevin Wale, president and managing director of the GM China Group said: "It will enable us to keep up with the rising demand for our products across China. At the same time, it will contribute to the growth of the economy in northern China and the region's automotive base."

To support the project, an automotive parts and logistics zone is being planned by the Shenyang government in the Auto City Industrial Park.