Volkswagen to build new plant in China

Volkswagen AG says it will build a new manufacturing plant in Yizheng, China which will start operating in 2013 and produce up to 300,000 vehicles a year.

Volkswagen AG says it will build a new manufacturing plant in Yizheng, China which will start operating in 2013 and produce up to 300,000 vehicles a year.

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The automaker based in Wolfsburg, Germany said it signed contracts to build the factory in the eastern Jiangsu province on Thursday. It says some 4,000 jobs will be created at the plant. Like other German automakers, Volkswagen has been helped this year by a big increase in demand in fast-growing China.

The company says it delivered more than 950,000 vehicles there in the first half of 2010 up 45.7 percent from a year earlier. The Yizheng plant is part of a plan to double the company's production capacity to 3 million vehicles by 2013-14.