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Nissan Building Commercial Vehicle Plant In China

Japanese automaker said it would build the new plant in China as part of the a plan to boost vehicle sales in one of the world's fastest-growing economies.

TOKYO (AP) -- Nissan Motor Co. said Wednesday it would build a new plant in China as part of the Japanese automaker's plan to boost vehicle sales in one of the world's fastest-growing economies.

Nissan's joint venture, Dongfeng Motor Co. Ltd., will set up the plant in Henan province, central China, to produce 120,000 light commercial vehicles a year, Japan's No.3 automaker said in a statement.

Nissan, Dongfeng Motor and Nissan's Chinese partner, Dongfeng Automobile Co. Ltd., will invest a combined US$145 million (euro92 million) for the new plant, which would become Nissan's fifth vehicle production plant in China.

Nissan also has an engine factory in China.

Dongfeng Motor sold 610,000 vehicles last year. Nissan said it aimed to lift Dongfeng Motor sales to one million units by 2012.