SAIC-GM-Wuling Automobile has begun making engines at its new Qingdao plant.

A Beijing News report said the plant would mainly produce GM’s B-series small displacement engines and has annual production capacity of 350,000 units, taking SAIC-GM-Wuling’s engine capacity to 700,000.

The second phase facility of the company’s Liuzhou engine plant is also expected to start production this year, with annual capacity of 175,000.