VW to produce 1.35 million transmissions in Tianjin plant; investment will be made in two phases

The Volkswagen Group plans to invest nearly €927 million (US$1.16 billion) in setting up a new transmission plant in Tianjin, according to a report by China Business Newswire. The automaker has signed an agreement with the municipal government of Tianjin in this regard. The plant will be constructed in two phases, beginning in August and to be completed by October 2014. VW initially will produce the DQ380 and DQ500 transmissions at the plant, which will have an annual capacity of 900,000 units. In the second phase, VW will invest another €300 million (US$376.6 million) to boost production of DQ380 transmissions by another 450,000 units per year. In total, the plant will produce 1.35 million transmissions per year.