Changan Group to invest $1.5 bln for vehicle production in Kunming

Shanghai December 31 (Gasgoo.com) China South Industries Group Corporation (CSGC), China Changan Automobile Group's parent company, signed Dec. 28 an agreement with the Yunan government to invest 10 billion yuan ($1.5 billion) in making 400,000 vehicles and 1.2 million engines per year in Kunming, capital of Yunnan province, Chongqing Commercial Daily reported Friday.

CSGC, a state-owned automobile manufacturer, will restructure the assets of Yunnan Internal-Combustion Engine Plant which holds a 38.14% stake in Kunming Yunnei Power, whose shares were suspended on December 8 in preparation for the agreement.

The move is expected to bring Changan Group sales revenue worth more than 43 billon yuan after five years.

Changan Group has not finalized the models to be built at the Yunnan production base, but will certainly make diesel-powered vehicles. This is not only the future development trend of China's automobile industry, but also the superiority resources the Group is going to integrate in Yunnan, an insider from Chnagan said.