Beijing Auto to build a $275 million production base in Hunan

Shanghai. January 15 (Gasgoo.com) - Beijing Automotive Industry Holding Corp (BAIC) is planning to build a new automobile manufacturing base with a total investment of 2 billion Yuan ($275.6 million) in southern China’s Hunan province. Beijing Auto has signed a framework agreement with local government of Zhuzhou in Hunan Province last month, local newspaper Beijing News reported yesterday.

 

Xu Heyi, chairman of Beijing Auto or Beiqi in Chinese, has reportedly decided on the location for the new plant, 60 kilometers off Changsha, capital city of Hunan, where Beiqi has already set up a manufacturing base. The new plant, which is scheduled to start operation in 2010, has an initial capacity of 200,000 vehicles per annum.

 

Upon the completion of the production unit in Zhuzhou,by the year 2010, Beiqi will have a combined capacity of 1.5 million vehicles.

 

Vehicles to be produced in Zhuzhou will include light-duty trucks and buses, pickups and sports utility vehicles (SUVs). It's not clear whether Beiqi's self-developed Beijing-branded sedans could be assembled there, but company source said that low-end products in Beiqi's portfolio will be produced in Zhuzhou.