Ssangyong signs LoI with Shaanxi Automobile Group

The South Korea-based Ssangyong Motor has signed a Letter of Intent (LoI) to form a 50:50 joint venture with Shaanxi Automobile Group of China to set up a 1.5 lakh unit plant in Xi’an Economic and Technological Development Zone in Xi’an, Shaanxi Province, in northwest China, by 2019. The joint venture will be Ssangyong’s first overseas production base in a 50:50 partnership with the Shaanxi Automobile Group. It will build production facilities for CBU vehicles and an engine plant on a 1.23 million area site in the Xi’an Economic and Technological Development Zone in Xi’an.

Initially, a plant with an annual capacity of 150,000 units per year will be set up by the end of 2019, with plans to expand the capacity to 300,000 units annually.