By building a new auto parts plant, BAIC hopes to strengthen auto parts sector

Shanghai. September 7 (Gasgoo.com) - Beijing Auto Industry Holding Co.,Ltd (BAIC), a long-term partner of DaimlerChrysler in China, has recently reached a deal with Beijing State-owned Assets Management Company to build an auto parts plant in the suburbs of Beijing.

Under the agreement, the two sides will make a joint investment of one billion yuan（$132.4 million） to build a new company named Beijing Auto Parts Firm. The firm will be located at Daxing district and Shunyi district in southeast and northeast suburbs of Beijing, covering 357,942 acres of land.

“Over the past five years, we have big huge progress in the production of complete-built vehicles, but our auto parts sector is left behind, which is hindering our development,” said Guo Xinmin, deputy general manager of BAIC.

Guo also said the newly-established firm will concentrate on introducing value-added, state-of-art, low-emission products and establish cooperative relationship with global top 500 enterprises or top three domestic auto parts makers in different product categories.

BAIC, which also has a partnership with Hyundai Motor Co through its wholly owned subsidiary Bejing Auto, has already had cooperative relations with Visteon, Lear and Johnson Controls.