BAIC Zhuzhou plant to be operational soon, to make high-end sedans

Shanghai December 15 (Gasgoo.com) Beijing Automotive Industry Holding Corp (BAIC)'s new plant in Zhuzhou in central China's Hunan province will go into operation on December 26, as part of construction of the automaker's southern production base, 163.com reported Wednesday.

BAIC's high-end sedans, small cars and self-developed engines will be manufactured in the base, located in the Li Yu Industrial Park, Tianyuan district, Zhuzhou.

Total investment in the base is 5 billion yuan ($751 million). The base sits on a 530, 000 square-meter site with a construction area of 200,000 square meters, of which the first phase construction of the base costs BAIC 2.5 billion yuan covering an area of 140,000 square meters, and will be completed on December 26 including four workshops: stamping, welding, painting and final assembly, as well as engine assembly facilities.

While the second phase construction of the base will have an area of 60,000 square meters, Chen Hongliang, deputy general manger of BAIC's passenger vehicle division, told 163.com in an interview.

The annual production capacity of the base in southern China will gradually reach 200,000 vehicles and 200,000 engines, with the first phase capacity of 100,000 vehicles to be achieved by 2012, Chen said. 

The Zhuzhou plant has two production lines. The first line is for crossover models, including the BC305Z and BC307Z, as well as the BC306Z that has rolled off the line on October 28, and will be modified to wagons, ambulances, postal vehicles, etc. in the future.

The other line will manufacture BAIC's high-end small cars, consisting of the BC302Z and BC303Z, as well as the BC301Z that will roll off the line on December 26.

The engine plant, as an important part of the Lizhou base, is undergoing construction, and will be up and running in July or August 2011. It will initially produce the 1.2L engines, which will be used to power BAIC's crossover models and in the future to power the small-sized cars.

In addition, BAIC will build an auto parts, components industry park in the city and construction of the park will be completed in June or July 2011. The products will be first used in the vehicles made in Zhuzhou.

Although the entire southern production base is yet to be formed, Chen said BAIC is already planning to build the second plant, which has a designed annual capacity of 400,000-500,000 vehicles.