SAIC Motor has launched production at its newly built vehicle assembly plant in the city of Ningde in China's eastern Fujian province.

The CNY5bn (US$700m) factory began production at the weekend of the newly-developed MG eHS, a new energy vehicle range to be sold domestically and overseas by the company's MG Motor subsidiary. 

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The new assembly facility, which has an initial annual production capacity of 300,000 vehicles per year, will mainly produce MG and Roewe brand vehicles. 

SAIC Motor chairman Chen Hong said the plant had already created around 10,000 jobs in the Ningde area, including directly and indirectly among the 30 Tier 1 component suppliers already in operation.

The MG eHS is a plug in hybrid saloon/sedan model fitted with a 1.5-litre petrol engine. It will be sold initially in China but will eventually be exported to world markets including Europe.

The British classic car brand MG, along with the Longbridge plant in the UK, was originally acquired by Nanjing Automobile in 2005 following the bankruptcy of MG Rover.

SAIC Motor subsequently acquired Nanjing Automobile in 2007.

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