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Tianjin FAW Xiali kicks off expansion project

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Shanghai, October 28, 2008: ( Tianjin FAW Xiali Automotive Co., Ltd, Toyota Motor Co's Chinese partner, yesterday kicked off construction of a new facility with an annual capacity of 150,000 units in its Huali (Tianjin) manufacturing base, local Tianjin Daily reported today.

The new facility's construction, based on the original site of FAW Huali, has a total investment of nearly 1.6 billion yuan ($234.3 billion). The plant is expected to use world-class equipment and technologies to make the X123, V221, A230 series of vehicle models independently developed by FAW Xiali.

When its construction is completed by September 2010, the new Huali plant will have an annual production capacity of 150,000 units and bring FAW Xiali's annual output to 430,000 vehicles by 2012.

FAW Xiali aims to build up a China No. 1 manufacturing base of own-brand economical sedans. The company bought 100% stakes of its neighboring FAW Huali for 300,000 yuan in April this year.

As a key part of Chinese auto giant FAW Group's own-brand strategy, FAW Xiali will have its sales network merged with those of FAW Hongqi and Besturn brands in the near future.

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