General Motors(GM)and its Chinese joint-venture(JV)partners will construct a third manufacturing facility in Chongqing Municipality.
The JV between GM China,SAIC and Wuling Motors,also known as SAIC-GM-Wuling(SGMW),will start construction of the new facility in early 2013 after securing government approvals.
The first phase of the facility will cost RMB 6.6bn($1.06bn)and is scheduled to start operations in 2015.
Upon completion,the facility will produce 400,000 vehicles as well as 400,000 engines per annum.
The new facility will allow SGMW to reach its production target of two million vehicles per year by the end of 2015.
SGMW currently operates manufacturing facilities in Liuzhou,Guangxi Zhuang Autonomous Region,and Qingdao,Shandong.
The JV,which sold 1.29 million vehicles in 2011,had year-to-date sales of 1.3 million units in the domestic market with a 47.5%of China's commercial mini-commercial vehicle segment.