December 03, 2008

Chery builds engine block plant

It is reported that Chinese carmaker Chery Automobile has started the construction of a foundry plant of engine blocks with an investment of more than CNY 2 billion to meet its demand of car production.

According to Chery officials the foundry plant, covering an area of 214,300 square meters, will also make crankshafts, exhausts and other parts.

The project's first phase will be completed at the end of this year with an annual production capacity of 800,000 casts, and the whole plant is scheduled to be completed in 2010 with six production lines to make 2.4 million pieces annually.

Chery official said engine blocks have become a bottleneck for the development of Chery, which aims at both domestic and overseas markets.

Chery Automobile based in Wuhu plans to raise its annual output to 1 million vehicles by 2010.