Nissan’s Second Guangzhou Factory Breaks Ground

Construction of a new Nissan factory in Guangzhou officially started on May 8 with a grand ceremony. Dongfeng Nissan, Nissan’s China joint venture with Dongfeng Motor, plans to spend Yuan 5 billion on this huge facility comprising auto stamping, welding, paint, and general assembly shops.

Production is to begin in 2012, with a designed capacity of 240,000 units a year. Up to four Nissan models would be made here, although it has not been specified which models.

This new factory will add to the present one, which is running overtime rolling out sedans, and make the Guangzhou production base the largest for Nissan around the globe in terms of production capacity. Together, the two factories are to produce 600,000 cars a year, which will include the new Nissan March–called Micra outside Asia.

Dongfeng Nissan sold nearly 520,000 units in China in 2009, and targets 1 million in 3 or 4 years. Besides Guangzhou, it has production base in Zhengzhou, Henan, in central China, which produces SUVs.