The Dongfeng Motor Group joint venture with Nissan Motor plans to spend RMB5bn (US$732m) to expand a new passenger vehicle plant in the southern city of Guangzhou.
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The 240,000 unit plant will start operations in 2012, the company said in a statement, more than doubling total company output to 700,000 a year.
Dongfeng told Reuters the expansion would safeguard the mid to long term business plan of its joint venture.
First half 2009 sales rose 41% to 225,073 vehicles. The JV expects to exceed its 388,000 full year target after boosting sales 29% to 350,000 vehicles in 2008.
