On the morning of August 16, BAIC held an official ceremony in Binzhou, situated in northern Shandong province, to mark its investment of CNY 13.8 billion in a new auto parts production base. BAIC’s Binzhou plants, located in the Shandong Economic and Technological Development Zone, will mainly engage in the development, design and manufacturing of engine blocks, cylinder heads, transmission housing and other high-end auto parts.

Mr. Xu Heyi, chairman of the board at BAIC Group, said that the large investment in the  BAIC Binzhou auto parts production base highlighted BAIC’s fast-paced progress and decision-making efficiency. Xu further stated that he hoped that the Binzhou base would contribute to BAIC’s success by leveraging technological and geographical advantages.

Binzhou has established an important equipment manufacturing cluster, especially as regards the auto parts sector. It is home to the country’s largest aluminum production and processing base for car wheels, pistons and other auto parts. BAIC’s production base in Binzhou plays an important role in the company’s overall strategy. Through the new investment, BAIC seeks to strengthen its automotive parts arm represented by Beijing Hainachuan Automotive Parts Co., Ltd. The investment in the Binzhou production base is closely tied to BAIC’s ongoing internationalization strategy.