Jan. 10, 2012 (China Knowledge) - Shanghai
Volkswagen Automotive Co Ltd, a 50:50 joint venture between Shanghai
Automotive Industry Corp (SAIC) and Germany-based Volkswagen AG, kicked off construction on a new auto plant in Ningbo
Province last weekend.
The new plant, which will cost RMB 11.76 billion and will go into operation in 2014 with an annual output capacity of 300,000 vehicles, is expected to bring Volkswagen's capacity in China to around 3 million units by 2013 or 2014.
The German auto maker said the new plant is part of its EUR 14 billion-investment plan in China for market expansion.
Analysts said Ningbo
's auto parts industry will grow by over RMB 70 billion due to the new plant.
China has became Volkswagen's most important and largest market, said Karl-Thomas Neumann, President and CEO of Volkswagen China.
Sources reported that Shanghai VW owns plants in several Chinese cities, including Shanghai
and Yizheng of Jiangsu