FAW Car to invest RMB 2.09 bln in technology innovation

FAW Car Co<000800>, a unit under First Automotive Works (FAW), one of the three biggest Chinese auto markers, will investment RMB 2.09 billion (US$298 million) in three projects for capacity expansion and model update, the company said in a statement on Wednesday.

According to the statement, RMB 575 million will be used to update the production line of Mazda 6 and purchase new equipments, targeting to boost its annual capacity to 60,000 units by this year end when the project comes on stream.

Another RMB 822 million will be put into technology innovation of its self-developed model B131. The company will be able to make 80,000 B131 models annually upon completion of the project.

In addition, it will spend RMB 696 million in expanding engine production, the statement said, adding that annual capacity of auto engine is likely to hit 90,000 units from current 50,000 units.