Gasgoo.com (Shanghai June 6) - Dongfeng Renault's proposal to establish a new commercial vehicle factory in Wuhan, Hubei, has received official approval from the Ministry of Environmental Protection, Gasgoo.com (Chinese) reported today. The new site is anticipated to play an important role in boosting Renault's plans to manufacture vehicles in China.
According to the announcement on the Ministry of Environmental Protection's official website, the 7.21 billion yuan ($1.17b) site, which will be located in the Hanyang Huangjinkou City Industrial Park in Hankou, Wuhan, will be able to produce 150,000 passenger automobiles and 150,000 engines annually. The site is estimated to bring in approximately 20.4 billion yuan ($3.31b) in income and two billion yuan ($324.03m) in profits after it begins full operation.
The proposal for the new factory was handled remarkably smoothly, having been officially approved late last month. French President François Hollande's official visit to China in April may have helped speed up the approval process. However the proposal still needs to be reviewed by the National Development and Reform Commission and the Ministry of Industry and Information Technology.
Earlier this week reports appeared that Renault had begun contacting its Chinese dealerships to discuss the possibility of selling domestically produced vehicles at thier outlets.
