Geely unveils plan to boost production capacity in northwest China
China's largest independent carmaker Geely Automobile said it would invest 2 billion yuan (300 million U.S. dollars) over the next three years to boost car manufacturing capacity at its Lanzhou plant in Gansu Province.
The expanded plant, when completed in 2012, is likely to reap 10 billion yuan, Wednesday's China Daily reported, quoting the company's officials as saying.
The Lanzhou plant's capacity will go up to 120,000 units by then from 50,000 units now, according to the newspaper.
"We are looking to being the leader in the northwestern markets and are significantly enhancing our production lines, sales, technologies and services," Geely Chairman Li Shufu was quoted as saying.
Analysts say Geely's strategy to focus on Lanzhou would be beneficial in the long run as the reduced logistics cost will help increase its market share in the region.
"Geely's target is to produce and sell 2 million cars by 2015, with half in China and half abroad," said Li.
The company, which plans to establish 15 overseas production bases by 2015, has set up manufacturing bases in Russia, Ukraine and Indonesia, while the Malaysian plant may start production soon, according to the company's officials.
