Dongfeng, Nissan to build engine factory in Zhengzhou

Dongfeng Motor Corporation, the third largest car group in China, and Nissan Motor Co., Ltd. of Japan signed an agreement in July to build an engine factory in Zhengzhou, capital of Central China’s Henan province. The new factory will be a 51-49 joint venture between the two companies, with the Chinese company owning the majority share. The venture, with a total investment of US$224 million is about to kick off construction in March 2009. It will produce three-liter diesel engines, which will be supplied to the light business vehicles of Zhengzhou Nissan Automobile Co., Ltd., a joint venture owned by the two companies. The two partners will inject ¥11 billion (US$105 million) as start-up capital in the new venture, which will be capable of producing more than 120,000 engines annually. Their ventures in China plan to sell more than 1 million light-duty cars by 2012. (July 15, 2008)