Chinese Company To Build Diesel Parts Plant

BEIJING December 26, 2002; Dow Jones reports that First Auto Works Group will invest 1.5 billion yuan ($1= CNY8.28) to produce diesel engine parts in the northeastern coastal city of Dalian, state media reported.

The new factory will produce 30 types of diesel engine parts using technology imported from Germany's Deutz AG , the official Xinhua News Agency said late Thursday.

Construction of the new plant will begin next year.

The report said that the plant will have an annual output capacity of 50,000 key engine parts by 2006.

The plant's annual capacity will eventually expand to 80,000 parts but the report didn't elaborate on the timeframe for this.

First Auto is one of two China-based joint venture partners of Volkswagen AG and recently signed a deal to build a $1.2 billion factory with Toyota Motor Corp. .