Foton Motor to spend $1.47 bln to expand capacity

Shanghai, April 6 (Gasgoo.com) Beiqi Foton Motor, China's leading commercial vehicle producer, recently announced its plans to spend 10 billion yuan ($1.47 bln) over the next two to three years to expand the capacity of its vehicle and engine production, media reported.

As the commercial vehicle subsidiary of Beijing Auto, Foton Motor aims to lift its vehicle production capacity to as much as 1.5 million units by 2013, the year in which the company is expected to become China's largest production base of commercial vehicles and engines.

The capacity expansion plans include building a second plant for Ouman heavy duty trucks. The new facility, scheduled for operation later this year, will be capable of producing 80,000 trucks per year, said Wang Xiangyin, vice general manger of Foton Motor.

Meanwhile, Foton will corporate further with Cummins Inc on the engine project. The two sides will invest 2.7 billion yuan in the project, aiming for an annual capacity of 400,000 units. Gasoline engines will also be made for Foton's passenger vehicles. 

Foton Motor recently started construction of a 3 billion plant in Miyun county, Beijing, mainly for its passenger car project. The new factory is expected to have an annual capacity of 200,000 vehicles.
 
The company said that it sold 602,021 vehicles in 2009, up 47% year on year, with its total revenue up 49.1% to 44.84 billion yuan. Its net profit for last year tripled to 1.04 billion yuan.