JAC to raise 2.8 billion yuan to boost production
Jianghuai Automobile Co. plans to issue stock to raise 2.8 billion yuan ($426 million) to boost production of passenger cars by 240,000 units, the Chinese Web site Global Times reported.
In a statement to the Shanghai stock exchange, JAC revealed plans to issue 150 million new shares of stock. The funds will allow JAC to produce mid-market and premium cars, and also to boost production of gasoline engines by 200,000 units.
The Global Times did not indicate the location of the new plants.
Separately, the automaker said its 2010 net profits jumped 244 percent to 1.2 billion yuan.
JAC, which is headquartered in the eastern China city of Hefei, sold 200,000 passenger cars and 242,000 commercial vehicles last year.
