Ford Plans To Build New Assembly Plant In China; Will Have 4 Factories Once Built
Ford has announced that it plans to build another assembly plant in China to meet growing demand in the world's largest auto market. The new factory will cost $760 million and will be built in Hangzhou.
News of this planned expansion comes just two weeks after it had announced yet another new plant in Chongqing costing $600 million, and after just completing a third factory also in Chongqing near its original plant.
Despite Chin's slowing automotive market, down 2.5% last year, it still sells more than 18 million cars ands trucks annually, more than any other nation. While a large number of vehicle tend to be cheap small cars made by Chinese companies, a fast growing segment is from China's rising middle class, estimated at 300 million and growing.
Ford has just 2% of the market in China, but with the new factories it will be able to produce an additional 350,000 vehicles over its current 150,000 now.
Ford said its newest plant to be built will be a state-of-the-art facility capable of future growth and a high production rate while ensuring quality.
Ford has been fairly aggressive with recent expansions, having just started its $1.3 billion expansion at its Hermosillo Mexico Plant to increase production throughout north and south America.