Changan Automotive Group, Ford Motor Company, and Mazda Motor Corporation have signed a joint venture contract for a new engine plant in the Jiangning Economic and Technological Development Zone (NJDZ) at Nanjing, in the Jiangsu Province of eastern China.
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The new engine plant, which is scheduled to be operational by early 2007, will supply engines to assembly facilities in China, including the one currently under construction in the NJDZ. The project is subject to government approvals.
This new engine project is named Changan Ford Mazda Engine Company Ltd. The engine company will be owned and operated by a joint venture to be established among Changan, Ford and Mazda.
In January 2005, the Chinese central government granted approval for the 190,000 square metre joint venture vehicle assembly plant in Nanjing. The assembly plant will have an initial annual capacity of 160,000 vehicles, and can be quickly expanded to meet market demand.
The new engine site is approximately one kilometre west of the Changan Ford vehicle assembly plant currently under construction. Groundbreaking and construction will start once the government approvals are granted. The engine facility will be built on a 290,000 square metre parcel of land and will have a capacity of 350,000 engines annually. The plant is designed with flexibility for future expansion and the longer term growth plans for all three companies.
Two new families of engines will be built at the new plant.
