Nissan to spend $900 million on assembly plant in China

Nissan Motor will invest about $900 million to construct a new auto assembly plant in China that will boost production capacity in the company by 30 percent, the Nikkei newspaper reported on Monday.

Nissan, which operates in the country through a joint venture with Dongfeng Motor, is in final stages of discussion with its Chinese partner to construct a new plant in Wuhan in Hubei province, the Nikkei reported without mentioning sources.

The investment in Wuhan, which amounts to 100 billion yen ($905 million), is anticipated to have an yearly production capacity of 200,000 to 300,000 cars annually, the Nikkei noted.

New production lines will be included to a Dongfeng plant located in Changzhou in Jiangsu province, which will boost capacity by about 120,000 passenger cars annually, a spokesman from Nissan informed Reuters in response to questions about the Nikkei’s story.

Along with Changzhou, Nissan is checking out the possibility of increasing production capacity in China, but no further information can be confirmed, the spokesman stated.