Volkswagen may build more factories in western China after announcing plans to set up a new plant in Xinjiang province, the company’s sales chief, Christian Klingler, said ahead of the Beijing show.

“We believe there is great potential for car sales in western China,” he told Reuters. “The new plant (in Xinjiang) is going to be only one part of our ‘go west’ strategy.”

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Chinese premier Wen Jiaobing signed the deal with Volkswagen CEO Martin Winterkorn on Monday in Germany to build the Xinjiang factory.