Gasgoo.com (Shanghai January 8) - Shanghai Volkswagen has officially begun work on its new production site in Zhejiang's seaport city of Ningbo this weekend, with the joint venture holding a signing ceremony late last week, zjdaily.com.cn reported. Shanghai VW will be putting 11.76 billion yuan ($1.87b) into the new site, which will also attract investments from various auto part enterprises. It will boast an annual product capacity of 300,000 vehicles.
The new production site, which will be equipped with state-of-the-art technology, will be a turning point for the province of Zhejiang, and will no doubt help attract new business interest to Ningbo. Some analysts predict that Ningbo's auto part industry will grow by over 70 billion yuan ($10.99b) as a result of the new factory.
As one of China's earliest foreign joint ventures, Shanghai VW has sites scattered throughout the country, with factories in Shanghai, Nanjing and Yizheng, Jiangsu.
