Volvo AB's China partner has committed $252 million to more than double the capacity of an existing engine plant, as part of its expansionary drive that could significantly boost its truck sales.

China National Heavy-Duty Truck Corp. (CNHTC) has kicked off a plan to move a plant in the eastern city of Hangzhou to the outskirts of the city and expand its capacity to 100,000 units per year from 40,000 units now, it said in a statement at the weekend.

The project, costing 2 billion yuan ($252 million), is scheduled to start operation in July 2008, bringing its overall annual engine capacity to 150,000 units.

CNHTC, which owns half of the truck manufacturing venture with the world's second-largest truck maker, sold 39,672 vehicles in the first eight months of this year, up 43.8 percent from a year earlier.

Full-year sales are estimated at 60,000 units, up from 45,000 units in 2005.

CNHTC is the state parent of Shenzhen-listed CNHTC Jinan Truck Co. Ltd.

It aims to float shares in Hong Kong before the end of the year to help fund an expansion that would more than double its truck sales to 125,000 units by 2010.

Source:佚名