Changan Auto breaks ground for $450 mln east China plant

The state parent of Chongqing Changan Automobile Co Ltd (000625.SZ) broke ground on Tuesday for a 3 billion yuan ($450 million) greenfield vehicle manufacturing plant in eastern China, with a designed annual production capacity of 400,000 units.

The first phase of the facility, with a capacity of 150,000 vehicles per year, was estimated to start operations in December next year, China Changan Automobile said in a statement.

The facility, in the city of Hefei, would make light commercial vehicles and was one of Changan's five such production bases in the country, it added.

Chongqing Changan makes cars in a three-way tie-up with Ford Motor Co (F.N) and Mazda Motor Corp (7261.T). The parent group agreed in July to set up a manufacturing venture with PSA Peugeot Citroen (PEUP.PA).