SHANGHAI Volkswagen Automotive Co, the joint venture between Volkswagen Ag and Shanghai Automotive Industry Corporation (SAIC) is planning to build a new manufacturing plant in Ningbo, in Ningbo, Zhejiang Province of China.
Scheduled to begin operations in 2013, the Ningbo plant will be the sixth for Shanghai Volkswagen, the joint venture between the German carmaker and its local partner SAIC Motor Corp.
The company said the new facility will produce approx. 300,000 vehicles per year and will employ several thousand workers.
Karl-Thomas Neumann, president and CEO of Volkswagen Group China, said the Ningbo plant is part of a 14 billion-euro (US$18 billion) investment program on the mainland by 2016.
FAW-Volkswagen has car plants in Changchun (two production lines), one in Chengdu and the Foshan plant which is under construction will be the first car manufacturing facility of FAW-Volkswagen in Southern China.
Volkswagen AG on Monday said it sold a record 8.156 million vehicles last year, a 14 percent rise over 2010. The company expects a tough 2012, though.
The Chinese new-car market is on track to top 20 million this year, the first country to do so.