Gasgoo.com (Shanghai March 22) - Geely Automobile has signed agreement with the government of Qinzhou, Guangqi to construct a new production site in the region, the Beijing Times reported today. The site will boast an annual production capability of 200,000 automobiles and 200,000 engines, and is scheduled to officially begin operation in 2015. The site will be Geely's eleventh in the country. Due to Qinzhou's location, the site may very likely be responsible for the manufacturer's exports in the future.

Ever since Qinzhou's status declaration as a tariff-free port in 2008, executives from Geely have been recorded as visiting Guangxi on numerous occasions. Last week manufacturer Chairman Li Shufu personally paid a visit to the region to meet with government authorities. According to Mr. Li, Geely has been researching various development strategies for the region, and is hoping to obtain a realistic partnership.

According to this program, Qinzhou's government will allocate 2,000 mu of industry space and 350 mu of living space. Government sources have confirmed that Geely has already begun doing manual work on the project. "Geely is in the process of doing factory design and land expropriation at the site [in question]," the source said, saying that the actual facility would be finished in two to three years time.

Geely currently has eleven production sites in China, spread across Zhejiang, Gansu, Sichuan, Shandong, Heilongjiang and other provinces. Due to Qinzhou being a tariff-free port, there has been much speculation that the new site will focus on manufacturing exports for the manufacturer. When asked about the allegations, Geely Spokesman Yang Xueliang refused to comment, only saying that the project is a part of the manufacturer's overall development plan.

Source:gasgoo