Ssangyong Motors has entered into a joint venture for its future plans. The Korean-based automobile manufacturer will be establishing its first overseas CBU (Completely Built Unit) production facility. All-new production facility for Ssangyong Motors will be set up in China.
A Letter Of Intent (LOI) has been signed between Ssangyong Motors and Shaanxi Automobile Group. Their production facility will be located in Xi'an Economic and Technological Development Zone in Xi'an, Shaanxi Province, Northwest China.
It is a 50/50 partnership which will be used to construct a new production facility. Both vehicles and engines for international markets will be manufactured at the new production facility in China. By 2019-end the Chinese production facility will have an annual capacity of 1.50 lakh units.
Their second phase plan is to double annual production for the international market. Ssangyong Motors aims to manufacture 3 lakh units annually from its Chinese facility. Recently, Ssangyong Motors announced that they plan on entering the American market and this could fuel the demand.