UPDATE 1-Guangzhou Auto to spend $990 mln on auto facility

(Adds timetable of project, background)

By Fang Yan

SHANGHAI, July 4 (Reuters) - Guangzhou Automobile Group Co is investing 6.8 billion yuan ($990 million) to build a production base that will start assembling its first car under its own brand by 2010, a senior executive said in Friday.

The automaker, parent of Hong Kong-listed Denway Motors (0203.HK) and a joint venture partner of Honda Motor Co (7267.T) and Toyota Motor (7203.T), is also talking with regulators about a planned listing on domestic and overseas stock markets although there is no time frame for a listing, said He Yanhui, standing vice-general manager of Guangzhou Automobile.

"The markets are so bad in China and in Hong Kong it's hard to set a timetable at the moment," he told Reuters on the sidelines of an industry forum.

Chinese media have reported that the offering was scheduled for the third quarter this year and could raise $2 billion, but He dismissed the report as inaccurate. He declined to go into details, however.

After churning out Honda Accords, Toyota Camrys and other foreign models via tie-ups, Guangzhou Auto is planning to join SAIC Motor Corp (600104.SS) and other domestic players developing cars under their own brands, hoping to wean themselves from reliance on overseas technology.

Phase one of Guangzhou Auto's facility, which is under construction in southern China's Guangdong province and is due to start operation by 2010, will have annual production capacity of 100,000 vehicles and 100,000 engines, He said.

The second phase will have capacity of 200,000 vehicles per year and 250,000 engines, he said, although there was no timetable for its completion.