JIMO, Shandong – FAW Group laid a cornerstone for its commercial vehicle manufacturing plant operated by the Qingdao division of FAW Jiefang Co. here on August 9, according to the local media qingdaonews.com.
Covering a land area of 1.53 million square meters, the new facility is designed to churn out 200,000 commercial vehicles a year after two phases of construction are completed.
With an investment of ¥2.46 billion ($372 million), the first phase (1.33 million square meters) will start in September 2011 for an annual production capacity of 100,000 units. It is scheduled be operational by the end of 2013, with expected sales turnover of over ¥20 billion and tax revenue of over ¥1 billion.
Timing for the second phase has not yet been announced.
“The program is an important measure for FAW Group in deepening strategic cooperation with Qingdao city,” said Dong Chunbo, vice president of FAW Group, at the groundbreaking ceremony. “It will ensure the realization of sales target of 500,000 units for FAW Jiefang over the next five years and promotes FAW Jiefang’s production contribution.”
Earlier on July 13 in Changchun, Jilin Province, FAW signed a strategic cooperation agreement with Qingdao municipal government for this manufacturing base.
FAW Jiefang is a wholly-owned subsidiary of FAW Group and makes a range of light, medium and heavy-duty trucks along with diesel engines, transmissions and axles.
Through to June 2011, FAW Jiefang sold 112,000 medium and heavy-duty trucks.
In 2010, the truck maker sold 259,000 trucks, increasing 55.3 percent over 2009.