Manufacturing News

Geely, Great Wall to add plants in China

China’s Geely Automobile Holdings and Great Wall Motor Co. each plans to add an assembly plant in China, ignoring the current market downturn.

Geely, China’s largest passenger vehicle maker, received approved to construct a 9 billion yuan ($1.3 billion) assembly plant in Wuhan, the capital of central China’s Hubei province, the Hubei provincial government said on its website this week.

The factory will initially build up to 150,000 vehicles a year after starting production. It will assemble gasoline, hybrid and electric vehicles, according to the Hubei government.

Great Wall, China’s largest light truck manufacturer, won permission to construct a 2 billion yuan assembly plant in Pinghu city in east China’s Zhejiang province, the Zhejiang provincial government said on its website last week.

The factory will have annual production capacity of 100,000 vehicles, including 50,000 EVs, 30,000 SUVs and crossovers, and 20,000 pickups.

The construction timing for the two plants was not disclosed.

The Wuhan factory will become Geely’s fifth vehicle production site in China.

Geely, which now assembles vehicles in four domestic cities -- Ningbo, Xiangtan, Baoji and Chengdu -- delivered more than 1.4 million vehicles through November, a surge of 29 percent from a year earlier.

The Pinghu factory will be Great Wall’s sixth domestic assembly plant after factories in Baoding, Xushui and Tianjin and two plants currently under construction in Chongqing and Rizhao.

In July, Great Wall signed an agreement with BMW Group to establish a joint venture in the east China city of Zhangjiagang. The partnership, due to launch production in 2021, will build EVs for BMW’s Mini brand as well as Great Wall’s proprietary marques.

In the first 11 months, Great Wall’s sales dropped 2.7 percent to 919,245.

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