Aug. 23, 2010 (China Knowledge) - Beijing Automotive Industry Holdings or BAIC on Aug. 18 announced that it will invest around RMB 5 billion in subsidiary Baolong Auto Guangzhou Oriental Baolong Automotive Co<600988
> to build a auto production base within two years.
The base, which will comprise two plants and will be located in Guangzhou, Guangdong Province, will have an annual output of 300,000 autos and is expected to generate RMB 30 billion in annual sales revenue, and its output value of autos and components may hit RMB 80 billion.
Last week, BAIC and Chongqing Yinxiang Motorcycle (Group) Co Ltd announced plans to spend RMB 1.5 billion in the initial stage to build a 300,000-auto plant in Chongqing, another southern city in China.
Zhang Xin, deputy general manager of BAIC, said that it hopes to build its fifth auto production base in East China in the near future through mergers and acquisitions.
BAIC targets RMB 150 billion-sales revenue for 2010, sources reported.