Anhui Jianghuai eyes new Yuan 590m minivan plant

Chinese vehicle manufacturer Anhui Jianghuai Automobile (JAC) will reportedly invest Yuan 590m (US$86.4m) to set up a new minivan facility in Hefei city, in China's Anhui province.

According to China Securities Journal, this new facility will have annual output capacity of 30,000 minivans, Gasgoo.com says. The vehicles produced at this plant will be self-developed models by JAC.

According to the company's initial estimates, working at full capacity, the new plant should generate annual sales revenue of Yuan 3.58bn, with a net profit of Yuan 450m. The payback period for the OEM's investment is expected at 5.5 years.

In June, JAC's vehicle and chassis sales totalled 25,066 units, which included 5,819 cars, up 13.5% year-on-year. The company accounted for sales of 3,455 minivans last month. Sales were boosted especially by its minivan and light-duty truck segments.

For the first half of 2009, JAC accounted for sales of 145,665 vehicles and chassis; of this total, vehicle sales rose by 14.8% while chassis sales grew by 13.9% year-on-year.

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