The China-based Changan Automotive Group, Ford Motor Company and Mazda Motor Corporation announced Thursday that State Development and Reform Commission has approved a three-party joint venture engine company project.

The joint-venture, named Changan Ford Mazda Engine Company Ltd. , will be located in Jiangning Economic and Technological Development Zone near Nanjing in Jiangsu province.

"This new engine plant complements the new vehicle manufacturing facility and enables all three companies to provide the latest technology products to our growing lists of customers," Mark Schulz, executive vice president of Ford Motor Company said.

The new engine facility will have an annual capacity of 350,000 engines and is scheduled to open in 2007.

The new engine facility will supply engines primarily to the nearby Changan Ford Nanjing Company, the joint venture vehicle assembly plant currently under construction and will be operated by Changan, Ford and Mazda. Additionally, the new engine facility will have the capacity and flexibility to supply engines, as needed, to the partners' other assembly operations in China which produce Ford and Mazda brand products.

"The project will further strengthen the three parties' cooperation and their respective competitiveness in China.

With a building area of 92,000 square meters, the new engine manufacturing facility is approximately one kilometer west of the vehicle assembly plant, which was approved in January.

This new engine plant in Nanjing is part of the one billion US dollar investment with the partners that Ford Motor Chairman and CEO Bill Ford announced during his visit to China in October 2003. This investment plan also serves as the basis of Ford and Changan's strategic partnership.

Source: Xinhua