CHENGDU, Sichuan – FAW Jiefang Automobile Co., Ltd. signed a deal with the Chengdu municipal government on December 21, 2010 in which the medium and heavy-duty truck subsidiary of China’s FAW Group will build a new production facility here.
FAW Jiefang Qingdao Factory, an affiliate of FAW Jiefang, will invest ¥1 billion ($150 million) in the new plant, which is expected to break ground in July of this year and go into production in January 2013. The new plant will have an annual output capacity of 60,000 medium and heavy-duty trucks as well as 40,000 light trucks. Annual sales turnover is expected to reach ¥15-¥20 billion.
The move is expected to help FAW Jiefang, China’s largest heavy-duty truck maker by sales volume, expand strategically into China’s western region and elevate its market share there.
FAW Jiefang Qingdao is based on the Qingdao Automobile Works that was founded in 1968, and has 40 years of history in making diesel trucks. It became an FAW Jiefang subsidiary in 2003 after FAW Group acquired it as a subsidiary in 1993. It currently has an annual output capacity of 70,000 trucks and chassis and 10,000 special-purpose vehicles.