Changan Auto to set up a 200,000-unit-capacity base in Shenzhen
- Source: Global Times
- [14:20 August 26 2010]
- Comments
Changan Automobile Group (Changan Auto) will sign a strategic cooperation agreement with the Shenzhen municipal Government Thursday afternoon, according to Changan Auto on Thursday. The two parties will cooperate to set up an auto manufacturing base with capacity of 200,000 units a year.
The Shenzhen manufacturing base is a joint venture (JV) created by Changan Auto and PSA Peugeot Citroen. The new JV, capitalized at RMB 4 billion yuan ($590 million) and backed by an initial investment of RMB 8.5 billion yuan ($1.24 billion), will be the focus of the strategic cooperation agreement signed by Changan Automobile and Shenzhen government.
Changan SPA will have an output of 20 billion yuan with a sales volume of 20,0000 units and its industrial chain will create a production value of 50 billion yuan for Shenzhen city after it goes into operation, according to Changan Auto.
Since May this year, Changan Auto has signed agreements with Heilongjiang Province, Jinde County, Jiangxi Province, Nanjing City, Hefei city and Beijing city. The total amount of the investments reaches 14.5 to 15 billion yuan with a 2.4 million units' production capacity.
Xu Liuping said on August 23 that car sales volume in the country is likely to reach 400 million units in 2020, therefore Changan Auto is now reserving capacity for future competition. According to the plan, Changan is expected to sell 3 million cars by 2015, and 5 million by 2020.
