Manufacturing News

Shanghai GM plans factory in central China

Shanghai General Motors Co. last week signed an agreement with the government of central China's Hubei province to build an assembly plant in Wuhan, Hubei's provincial capital.

The plant, with an initial investment of 14 billion yuan ($2.2 billion), will produce up to 300,000 passenger vehicles a year, according to information released by the provincial government.

The Hubei government pledged full support for the plant and expects construction to start "in the earliest possible time," the government said in a statement.

Shanghai GM, a 51-49 joint venture between SAIC Motor Co. and General Motors, has yet to disclose information about the Wuhan plant.

Shanghai GM operates three plants in Shanghai, Yantai and Shenyang with a combined production capacity of 960,000 vehicles. The Shenyang plant is undergoing expansion to increase its annual production capacity to 300,000 vehicles, up from 200,000 vehicles now.

All three plants are exceeding their designated production capacity. Last year, Shanghai GM sold 1.2 million vehicles, up 18.5 percent year-on-year.

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