Chongqing Changan Automobile plans to spend CNY4.3bn (US$648m) on a production base in Beijing.
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The project, with a designed annual production capacity of 200,000 cars, is expected to start operation in June 2012, it said in a stock exchange filing cited by Reuters.
Changan did not say how it would fund the project, but the automaker recently received regulatory approval to raise as much as CNY4bn via a new share offering.
Changan operates a three-way venture with Ford and Mazda, making Focus, Fiesta, 3 and other models.
Reports earlier this year said the three had received government approval to end their three-way agreement and Ford and Mazda would each set up separate 50-50 joint ventures with Changan at the end of this year.
Changan has ties with PSA Peugeot Citroen and also makes compact cars, such as the Yuexiang and BenBen. Changan’s first premium model is expected to roll off the production line next year, company executives have said.
