Apr. 18, 2012 (China Knowledge) - Chongqing
Changan Suzuki Automobile Co Ltd, a joint venture set up by Chongqing
Changan Automobile Co Ltd<000625
> and Japanese automaker Suzuki Motor Corp, kicked off construction on its second plant in Banan District, Chongqing
The new facility, which will cost RMB 2.3 billion or around US$364.52 million, is designed to have four automobile assembly lines with annual output capacity totaling 100,000 vehicles. The site is scheduled to begin operation in 2013 and expect to bring in RMB 1.3 billion in taxes per year and creating 3,000 jobs.
The second plant is 28 kilometers away from the heart of Chongqing
and only 500 meters away from the JV's first plant, which produces 250,000 autos annually. Chongqing
Changan and Suzuki launched the JV in 1993 and began production of the Alto in 1995, followed by the Cultus, Swift, and SX4, said a person familiar with the matter.
The JV sold 17,000 vehicles in March, reflecting a year-on-year decline of 27.2%, sources reported.