Foton Motor starts new plant construction in Beijing

Shanghai, January 5 (Gasgoo.com) China's leading commercial vehicle producer Beiqi Foton Motor recently started construction of a 3 billion ($439 mln) plant in Miyun county, Beijing, mainly for its passenger car project, local media reported.

The new factory is expected to have an annual capacity of 200,000 vehicles. Its production will include the current MP-X and Midi car models and the company's newly-developed products such as pick-ups, SUVs, large vans and crossover vehicles.

Foton sold more than 600,000 vehicles in 2009, a year-on-year increase of over 40%. The company, formerly a commercial vehicle subsidiary of Beijing Auto, aims to produce one million vehicles and one million engines annually by 2012. About half of the vehicles will be made in Beijing.

Meanwhile the company has announced its plans to raise 2.5 billion yuan through selling additional shares to fund technology upgrades on its heavy-duty trucks, Reuters reported last week.

The proceeds would be used to buy equipment in Foton's 2.08 billion yuan plant in Huairou district in Beijing, which is set to produce new GTL pickups and Ouman branded heavy duty trucks with an annual output of 60,000 units.