New SGMW factory in Liangjiang puts into operation soon

A section of the production line of the SGMW base in Chongqing has been tested and is expected to begin operation in November, according to the Administrative Committee of Liangjiang New Area. This is a major development for the district’s international automobile city, which is worth of billions of yuan.

The SGMW base in Chongqing is located in the area's Longxing Industrial Development Zone. Total investment in the base reached 6.6 billion yuan（$1.1 billion）, and the project’s first phase covers 1.3 million square meters. The base is expected to reach an annual production capacity of 400,000 vehicles and 400,000 engines.

At the construction site, four main factories for engines, stamping, welding and general assembly have been completely finished. The body shop for PPV sub-assembly manufacturing has been started as well. It is expected that all equipment will be installed this month, tested in early September and put into formal operation in November.

“It takes only 11 months to finish capping the whole factory,” said Huang Chunsun, the base’s senior project manager. SGMW chose Liangjiang New District for its competitive location advantage in Chongqing and the superior investment environment provided by the government.

The factory will produce an advanced brand of SGMW and introduce more brands in the future. According to the manager, the base in Chongqing will become a major force in the New District’s International Automobile City, promote the industry’s growth and enhance its competitiveness.

Authorities in charge of the Longxing Industrial Development Zone said that the SGMW base in Chongqing will adhere to GM’s global manufacturing standards and operate under its motto of “low cost, high value”. It is estimated that it will see a sales income of 13 billion yuan after it is put into production.

Apart from SGMW, the International Automobile City is seeing the construction of a Xiaokang Fiat Engine center and the Chang’an Group's center for cars and engines. Honeywell and Hankooktire have already been completed and put into operation.

In the North New District in the west of the auto city, there are now five vehicle factories, three engine factories, one gearbox factory, two R&D centers and over 80 supporting enterprises. The area has produced over one million vehicles, one million gearboxes and 1.45 million engines.

In 2013, the automobile industry’s output value in the auto city’s North New District reached 116.4 billion yuan. An additional 15 new projects including Ford, Lifan Engine, Webasto, IAC and the China Automotive Engineering Research Institute were put into operation. Cummins High-Horsepower Engines will also soon sign a contract.

The USA Avon Company, which is the global leader in the automotive rubber pipe field, has settled in the New District as well. The expansion and reconstruction has also begun on the USA Lear Co., Ltd’s New Area center. Lear is the world's leading automotive seating and electrical-management system provider.

As the pillar industry of Liangjiang New Area, automobiles and their parts account for 80 percent of Chongqing’s total industrial output. In just the first five months of 2014, the New Area’s automobile industrial output reached 84.617 billion yuan, an increase of 32.9 percent over last year.

During the same period, manufacturers produced 748,800 automobiles, an increase of 25.4 percent; 411,500 cars, an increase of 21.6 percent; and 151,100 thousand SUVs (Sport Utility Vehicles), an increase of 83 percent.

A Liangjiang New Area official said that by 2015, the auto city will include all top-10 vehicle enterprises. By 2020, Liangjiang International Automobile City will produce 3 to 4 million vehicles with an output value of 300 to 500 billion yuan.

Edited by Noelle Mateer