Geely reportedly to invest 2 bln yuan to boost capacity

Geely Automobile Holdings Ltd., whose parent signed a framework agreement to buy Ford Motor Co.'s Volvo brand, plans to invest CNY2 billion over the next three years to more than double the capacity of a plant in northeastern China to push sales in the region, the China Daily reported Wednesday, citing company officials.

The annual capacity of the plant, in Lanzhou, Gansu province, will rise to 120,000 units in 2012 from 50,000 units, the report said.

Zhejiang Geely Holding Group Co. expects to sign a final agreement with Ford to take over Volvo before the Chinese New Year, which begins Feb. 14, and complete the transaction by May, the report cited Zhejiang Geely Vice President Yin Daqing as saying.