FAW Xiali plans 150,000-unit capacity plant

Shanghai, August 29 (Gasgoo.com) Tianjin FAW Xiali Automobile Co, Toyota Motor Co's Chinese partner, announced plans to build a manufacturing plant with an annual capacity of 150,000 units in the neighboring FAW Huali (Tianjin) Motor Co, China's Nanfang Daily reported today.

FAW Xiali had bought 100% stakes of FAW Huali for 300,000 yuan ($43,935) in April. FAW Xiali said the new plant will be based on the original site of FAW Huali, where a new series of 1.6-litre models will be made after it starts operation two years later.

On Wednesday FAW Xiali also published its unaudited profit results for the first six months ended June 30, 2008, according to a Reuters report. Its operating profit fell to 37.19 million yuan from 77.43 million yuan, because of rising costs of raw materials and other expenses, it said.

It posted an investment profit of 524.40 million yuan in the first half however, up from 225.91 million yuan a year earlier thanks to investments in Tianjin FAW Toyota Motor Co, whose major products include hot-selling Toyota Crown sedan, Reiz, Corolla and Vios.

The company produced 95,324 cars in the first half, down 4.96 percent from a year earlier, while it sold 100,015 cars, up 5.95 percent.

FAW Xiali is actually running at a loss without contribution from FAW Toyota