Volkswagen and its JV partner FAW have opened a new engine plant in Changchun with initial production capacity of 300,000 units a year. 

The new plant will increase annual capacity to 450,000 units during its second phase from mid-2014, using “the most advanced production, processing and testing equipment in China,” Volkswagen said.

The launch of the plant with China’s FAW Group marked “a new height in the joint efforts of Volkswagen Group and its Chinese partners for advanced powertrains in China,” Jochem Heizmann, the head of Volkswagen Group China, said in a statement.

The Changchun engine plant is the first of seven new Volkswagen plants planned in China over the next few years.

It will produce several different versions of the EA888 engines used in Volkswagen and Audi cars, the company said.

China is the Volkswagen's largest market. It plans to increase annual production there by its JVs to 4m cars by 2018. 

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