Dongfeng Motor to build an reproducing base in central China

Shanghai, March 28, 2008 (Gasgoo.com) Dongfeng Motor Corp., one of China's three largest car manufacturers, plans to spend RMB 200 million ($28.32 million) and three years constructing an experimental base for reproducing auto parts in central China's Hubei province.

Reproducing auto parts is a process of cleaning, repairing and doing surface treatment of the scrapped auto parts and to make them to perform as well as the new ones. The renewed parts can save energy and reduce use cost. The 20-hectare base by Dongfeng Motor, due for completion by the end of 2010, will be capable of recycling and handling 50,000 scrapped cars and 100, 000 tons of scrapped materials and remaking 100,000 sets of auto parts.

Dongfeng Hongtai Holdings Group Co. Ltd and Dongfeng Cummins Engine Co. Ltd will be responsible for the construction. The project is expected to bring RMB 2.7 billion industrial output to the carmaker giant per year. It may help the firm save 30,000 tons of steel products. The country has approved 14 companies including the above two to do the experimentation.

The base of Dongfeng will first deal with sedans made by its venture with France-based PSA Peugeot Citroen, Dongfeng Peugeot Citroen Automobile Co., Ltd. and then other cars of the car group.