Business / Auto China

Expansion work starts on VW's Ningbo base

By Shi Xiaofeng (China Daily) Updated: 2014-06-09 07:13

Shanghai Volkswagen's production line in Ningbo, Zhejiang province. Provided to China Daily

Construction started on Shanghai

The first phase of the Ningbo production base started operating in October 2013 and the newly expanded area is due to be completed by 2016.

The new area is expected to help the automaker achieve its ambition to make the Ningbo plant a global benchmark for Volkswagen.

The company said the expanded production site would boost Shanghai Volkswagen's production in the Yangtze River Delta region.

The new facilities will use Volkswagen's state-of-the-art environmental protection technologies to produce mainly the new Superb Supai and the Octavia Mingrui.

Shanghai Volkswagen signed an a greement with the Ningbo city government on Jan 6, 2012, and started construction for the first phase of the Ningbo facility the day after.

With a planned investment of 11.7 billion yuan, the total area of the site will hit 1.87 million square meters.

Shanghai Volkswagen announced on May 27 that it will donate more than 4 million yuan ($656,000) worth of cash and teaching facilities to the Ningbo People's Education Foundation.

From the donation 2 million yuan will be used by the foundation to set up a Shanghai Volkswagen Scholarship to support students in poverty to complete their education.

The fund, which will be allocated over two years, will also honor hardworking students.

Between 2014 and 2018 Shanghai Volkswagen said it planned to donate more than 2 million yuan worth of equipment, including cars and engines, to improve conditions for local occupational schools in Ningbo.

The automaker said it planned to expand the support to universities in the future.