Nissan Motor will spend around US$900m expanding vehicle assembly in China to increase company production capacity by 30%, Reuters reported, citing the Nikkei newspaper.

The reports said Nissan, is in the final stages of talks with Chinese partner Dongfeng to build a new plant in Wuhan in Hubei province.

The investment in Wuhan, worth JPY100bn ($905m), is expected to have an annual production capacity of 200,000 to 300,000 cars a year, the Nikkei reported.

A Nissan spokesman told Reuters new production lines would be added to a Dongfeng plant in Changzhou in Jiangsu province, which would increase capacity by about 120,000 passenger cars a year.

In addition to Changzhou, Nissan is exploring the possibility of expanding production capacity in China but no further details could be confirmed, the spokesman said.

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