BAIC officially begins work on Guangzhou factories

Gasgoo.com (Shanghai June 25) - BAIC Group has officially begun modification work on its production site in Guangdong's capital of Guangzhou, the Nanfang Metropolis Daily reported today. Work on the site, which will allow it to manufacture BAIC's own brand models, is scheduled to be completed by December of next year. The site's first product, the C61X SUV, will begin rolling off its assembly lines at that time.

The manufacturer is investing a total of five billion yuan ($795.34m) to update the site, with first phase investment totaling 3.6 billion yuan ($572.65m). Upon full completion of the project, the site, which consists of two different factories, will be able to produce 300,000 vehicles annually. It will focus on manufacturing BAIC own brand SUVs and minivans.

Work on the Guangzhou site was supposed to begin soon after its establishment last June. However, due to issues with ownership permits, BAIC was forced to put construction plans on hold for nearly a year. The site will play an important role in the manufacturer's development goals for southern China.

BAIC's overall production capacity is planned to total 700,000 units by 2013.