August 20, 2018 / 10:26 AM / a month ago

Nissan to invest $900 million on new assembly plant in China - Nikkei

TOKYO (Reuters) - Japan’s Nissan Motor Co (7201.T) will spend around $900 million (£705.7 million) to build a new auto assembly plant in China that will increase production capacity in the company by 30 percent, the Nikkei newspaper reported on Monday.

FILE PHOTO: A company logo is seen on the newly-unveiled Nissan "Terrano" compact sport utility vehicle during a news conference in Mumbai August 20, 2013. REUTERS/Danish Siddiqui

Nissan, which operates in China through a joint venture with Dongfeng Motor Group Co Ltd (0489.HK), is in final stages of talks with its Chinese partner to build a new plant in Wuhan in Hubei province, the Nikkei reported without citing sources.

The investment in Wuhan, which totals 100 billion yen (£709.6 million), is expected to have an annual production capacity of 200,000 to 300,000 cars a year, the Nikkei reported.

New production lines will be added to a Dongfeng plant in Changzhou in Jiangsu province, which will increase capacity by about 120,000 passenger cars a year, a spokesman from Nissan told Reuters in response to questions about the Nikkei’s story.

In addition to Changzhou, Nissan is exploring the possibility of expanding production capacity in China, but no further details can be confirmed, the spokesman said.

Reporting by Stanley White; Editing by Manolo Serapio Jr.

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