The state parent of Chongqing Changan Automobile has broken ground for a CNY3bn (US$450m) green field vehicle manufacturing plant in eastern China, with a designed annual production capacity of 400,000 units.
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The first phase of the facility, with a capacity of 150,000 vehicles per year, was estimated to start operations in December next year, China Changan Automobile said in a statement cited by Reuters. The facility, in the city of Hefei, would make light commercial vehicles and was one of Changan’s five such production bases in the country, it added.
Chongqing Changan makes cars in a three-way tie-up with Ford and Mazda Motor though that is to end at the end of the year with the western firms each setting up their own separate JVs.
The parent group agreed in July to set up a manufacturing venture with PSA Peugeot Citroen.
