Nissan invests $800 million in Chinese plant
Facility will produce up to 300,000 vehicles and is part of the automaker’s Chinese joint venture with Dongfeng Motor Co.
DALIAN, China: Dongfeng Motor Co., Ltd. (DFL), Nissan’s joint venture in China, is investing US$800 million in a manufacturing plant in Dalian, Liaoning Province that will build Nissan-branded passenger vehicles.
The facility is expected to have an annual production capacity of 150,000 units by 2014, but will eventually expand to 300,000 units.
It will be Nissan’s fourth manufacturing centre in China, a market the Japanese automaker has been attacking fiercely. Last year, Nissan announced an $8 billion expansion plan for China as part of a global strategy to focus on faster-growing emerging markets and reduce reliance on the US.
“China is our largest market today and will continue to be one of Nissan’s most important engines of growth,” said Hiroto Saikawa, Executive Vice President of Nissan Motor Co., Ltd. “The Dalian plant will be an important addition to our local supply base to realize our sales target of 2 million units in China by 2015.”
Dongfeng Motor Co. Ltd. was established in 2003 as a strategic partnership between Dongfeng Group and Nissan Motor Co. Ltd. DFL is the first joint venture in China to have a full lineup of passenger vehicles, LCVs and H&MCVs. Registered capital of the company is RMB 16.7 billion, it is the largest automotive joint venture investment in China, with Dongfeng and Nissan each holding a 50% stake.