Suzuki has said that it is considering building a plant in China jointly with China's Changhe Aircraft Industry (Group) Corp. to provide engines to their joint venture in an effort to reduce manufacturing costs, Dow Jones reports.

The report says that Suzuki is studying setting up an engine plant in Jiangxi Province to start operations around 2005.

Suzuki currently produces its Wagon R and Every models at its joint venture company, Jiangxi Changhe Suzuki Automobile Co., in Jiangxi Province. The venture currently procures 1.0-litre and 1.2-litre engines from a local manufacturer in Heilongjiang Province and Suzuki's engine plant in Japan.

A Suzuki spokesman said the two automakers would decide details such as production capacity and the amount of investment from now on.

The Nihon Keizai Shimbun reported Wednesday that Changhe Aircraft plans to acquire a property in Jiujiang city, Jiangxi Province and build a plant jointly with Suzuki for 1-litre class engines with annual capacity of 300,000 units.

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