THE First Automobile Works (FAW) has signed a strategic cooperation agreement with Qingdao to expand its commercial vehicle production in Jimo.

    Designed to achieve a production capacity of 200,000 commercial vehicles each year, the project will cover an area of around 2,300 mu (153 hectare) and is scheduled to be completed in two stages.

    The first stage, the production of 100,000 heavy trucks, will start in September and be completed before the end of 2013.

    The operation of the first stage is expected to bring a yearly sales income of more than 10 billion yuan to the automobile spare part enterprises, directly creating around 6,000 jobs.

    Under the agreement, the city government will continue its support of the FAW’s development in Qingdao, actively helping solve problems regarding energy supply, environmental protection, taxation, security and relocation.

    In addition, the FAW will consider the city as its strategic base of developing commercial vehicles, as well as research and development.

    The FAW’s Qingdao factory achieved a production capacity of 140,000 vehicles a year in 2010, realizing an output value of 25.6 billion yuan, driving the development of more than 100 auto spare part enterprises in the city.

    (Li Hao, Zhang Yu)