Ford to Spend $490M For Third China Plant

The U.S. automaker plans to build its third assembly plant in China, spending $490 million as it looks to expand its presence in Asia.

Author:: Joseph Woelfel
Publish date:: Sep 25, 2009 1:31 AM EDT

DEARBORN, Mich (

TheStreet

) --

Ford

(F) - Get Report

plans to build its third assembly plant in China, spending $490 million as it looks to expand its presence in Asia.

Ford said the new plant, in Chongqing, China, is scheduled for completion in 2012. The plant initially will be capable of making 150,000 vehicles a year, Ford said. The new plant will increase annual capacity at the company's Changan Ford Mazda Automotive joint venture to 600,000 units by 2012.

Ford, in a statement late Thursday, said it plans to introduce four new vehicles in China over the next three years.

The new China plant will begin making Ford's next-generation Ford Focus in 2012.

Ford's announcement confirms reports earlier this week that the U.S. automaker would

ramp up production in Asia

, which has long been a weak link for the company.

-- Reported by Joseph Woelfel in New York

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