Ford Motor Co has approved a plan to build a second assembly plant in Chongqing to meet fast-growing demand for its cars in China, Xinhua reported.

Through its joint venture Changan Ford Mazda, Ford will build the plant almost next to its existing assembly plant in the city. The new plant is designed to assemble more than 300,000 vehicles a year, most of them existing Ford SUV models. An auto engine manufacturing plant will be constructed nearby.

Ford’s first China plant, built with Mazda and Chongqing Changan Auto, produces about 250,000 vehicles annually. It has another plant in Nanjing, Jiangsu province, which has an initial capacity of 160,000 vehicles a year.