Nissan Confirms Huadu Plant Expansion

Following the rumors which surfaced in the media during the past few weeks, Japanese manufacturer Nissan today announced the expansion of the Huadu passenger vehicle plant in Guangzhou City, China, operated in a joint venture with local partner Dongfeng Motors.

The new production line will be operational in 2012 and is intended to ultimately increase annual capacity from 360,000 units to 600,000, 40,000 units more than initially said. The expansion will cost Nissan some $730 million.

"The new production line will help us meet the three objectives of our mid-term business plan," Kimiyasu Nakamura Dongfeng Motors president said. "With this expansion, we will reach a sufficient capacity to achieve our sales target by 2012 with the aim to produce first-class, quality products at the appropriate delivery timing and to accelerate clean production by reducing CO2, SO2 and COD (chemical oxygen demand), hallmarks of a trusted company."

For the time being, total Dongfeng Motors Chinese output, from both the Huadu and the Xiangfan plant amounts to 460,000 units per year. After the new line is complete, that output will increase to 700,000 units.

The Japanese manufacturer is preparing to enter a new chapter in its corporate history, as it will unveil three of its new electric vehicle on Sunday, August 2. Although production of current models will most likely continue decades from now, Nissan is making its first steps towards becoming the world's first EV mass-producer.

"Despite the global financial and economic crisis, Nissan is poised to embark on a new chapter of growth and innovation. We will reveal the all electric vehicle that will spearhead our vision for mass market, zero emission mobility," Carlos Ghosn, Nissan CEO said in a release.