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Chinese carmaker Jianghuai Automobile Co said on Tuesday it plans to invest about 30 billion yuan ($4.4 billion) on production of clean-technology vehicles through a partnership with Yang Rong, a Chinese automobile tycoon who fled the country after being accused of economic crimes.
Jianghuai will set up a 50-50 venture with the private equity unit of Yang's Far East Golden Resources Group and aims to make 1 million cars in the next eight years, Jianghuai said in a statement filed with the Shanghai Stock Exchange.
The venture, based in China's northern city of Tianjin, will also make car engines and batteries.
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Yang, chairman of Far East, and the former chairman of Brilliance China Automotive Holdings, BMW's partner in China, told Reuters in an interview last October that he was planning three multi-billion-dollar US plants to make 3 million clean-technology vehicles per year by 2017 and was seeking investors for a 60 billion yuan project in China to make 6 million clean-tech engines.
Yang, who is also called Yeung Yung, was at one time China's most influential carmaker, helping transform Brilliance from a stagnant state-owned auto factory into the country's top maker of mini-vans. He fled China in 2002 for the United States after being accused of economic crimes.