Australia scooter maker builds plant in China

Australia's only scooter manufacturer Vmoto has begun constructing a scooter assembly plant in Nanjing in China.

Perth-based scooter company Vmoto says its outlook is strong for the current financial year as it commissions a new manufacturing plant in Nanjing, China, to more than triple its production capacity.

"The year ahead is expected to be very rewarding," the company said.

"The board is confident that the manufacturing operations will become a major contributor of sales and profit over the coming year.

"Vmoto has also embarked on providing low cost hybrid/alternative energy vehicles to the market in a mass production environment to meet the needs and expectations of the rapidly changing consumer demand for efficient, green transport."

The Nanjing facility is on track for opening late in 2008. In total, the plant will ultimately have capacity for 200,000 scooter and engine units per annum.Shares in Vmoto were unchanged at 8.1 cents at 10.15am.