FRANKFURT Dec 7 Volkswagen AG is
planning to build another manufacturing plant in China and
discussions about setting up a facility in Xingjiang province
are now at an advanced stage, a person familiar with the matter
told Reuters on Wednesday.
A spokesman for Europe's biggest carmaker said the company
is constantly examining the possibility of building another
facility in China, where the passenger car market is expected
to grow even further.
"Because of that we are always in touch with the
corresponding local authorities over there as well as with our
Chinese joint venture partners," the spokesman said, declining
to provide any details.
German daily Frankfurter Allgemeine Zeitung reported on
Wednesday, citing information from the Chinese government, that
the new plant would build cars for the mid-sized segment and
would be located in Xingjiang's provincial capital of Urumqi.
The initial investment of the German-Chinese joint venture
Shanghai Volkswagen would be around 230 million euros, the
Together with partners FAW and SAIC , Volkswagen has currently nine factories in China,
with annual total production capacity of 1.9 million cars.
This year, Volkswagen is aiming to sell more than 2 million
cars in the country.