Chongqing Changan Automobile has announced plans to invest 2.5 billion yuan (US$366.2m) to construct a production plant for small vehicles.
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The facility will eventually have a capacity of 600,000 units, but to start will operate at 300,000 vehicles.
It will be based in the city of Chongqing and is expected to begin operations in 2012.
According to reports, the plant plan still needs the approval of the company’s board.
Changan is partner to Ford in China.
