Gasgoo.com (Shanghai July 6) - Shanghai GM is preparing to invest 7 billion yuan ($1.084b) to expand its production site at Shenyang, Liaoning, Economic Observer News reported today. The expansion plan had already gained official approval from the Ministry of Environmental Protection late last month. The factory will be able to manufacture 300,000 vehicles and 450,000 engines when expansion is completed.
The expansion will reportedly take place on the 7,500 meters of land in the north side of the site and will increase its size by 220 hectares. 67.1 million yuan ($10.39m) will be set aside for environmental expenditures. Both the Ministry of Environmental Protection and Shanghai GM have not announced a clear timetable.
The Shenyang factory was established in late 2004 as a result of cooperation between SAIC Group, GM and truck maker Jinbei. The factory was originally tasked with production of the Buick GL8 series.
