Nissan to Build Its Fourth Assembly Plant in China

Nissan Motor Co. confirms it intends to spend 5 billion yuan ($790 million) to erect a new assembly plant with venture partner Dongfeng Motor Group Co. near Dalian in northeastern China.

The factory is scheduled to open in 2014 with initial annual capacity of 150,000 units, which will later double. The facility will be Nissan's fourth Chinese assembly plant. The company aims to boost passenger-vehicle capacity 50% to 1.5 million units by 2015.

The Japanese carmaker says the Dalian plant will make unspecified Nissan-brand vehicles. The Nikkei reported in April that the joint venture wants to make the Nissan Murano crossover vehicle and X-Trail SUV and eventually unidentified electric vehicles for sale in China, other Asian countries and Russia.

The partners have agreed to supply 1,000 electric vehicles under their new Venucia brand to the city of Dalian for a pilot project to promote EVs and the infrastructure to support them.

Last year Nissan announced an $8 billion expansion plan for China, which includes introducing 30 new models by 2015. The company aims to increase sales to 2 million units by that date and more than 2.3 million vehicles by 2017. Nissan sold 1.3 million vehicles in China in the 2011 calendar year.

The company reports it has sold 425,000 vehicles in China this year through June 21, up 20% from the same period in 2011.