FAW-Volkswagen Automobile intends to spend around Rmb15bn to build a plant in Chengdu, capital of Sichuan province, with an annual output of 600,000 autos, various sources reported.

Initial production will start in the third quarter of 2011 with capacity reaching 450,000 units, said Jiang Yanchun, the company’s Party Committee Secretary-General.

FAW-Volkswagen is a joint venture passenger car manufacturer between Volkswagen and FAW Group Corp.