In the afternoon of July 2, Sichuan FAW Toyota Motor Co., Ltd and Chengdu Economic Committee, the Management Committee of Chengdu Economic and Technological Development Zone, signed the construction agreement for "Sichuan FAW Toyota Motor Co. Ltd Relocation Expansion Project", together with a package of project-supporting agreement such as "Toyota Textile Auto Parts ", "Toyota Logistics and Distribution" and so on. The total investment due to the contracted project is RMB yuan 1.8 billion, which is the mark of another automobile manufacturer as one of the World Top 500 Companies settling down in Chengdu Economic and Technological Development Zone and injecting new vitality into the automotive industry chain. The relocation of the expansion project will play a positive role in promoting the concentrated, intensive and clustered as well as smooth and fast development of Chengdu’s automotive industry.

Finding a new site as development is restricted

It is understood that Sichuan FAW Toyota Motor Co., Ltd is the first auto-manufacturing joint venture invested by Toyota in China, and also is the currently largest auto joint venture in Sichuan Province, which was established in November 1998. The company introduced Toyota's products and technology to produce the medium-sized passenger car with the brand COASTER and the sport utility vehicle with the brand PRADO.
　　
Liu Jurong, deputy general manager of Sichuan FAW Toyota Motor Co., Ltd, said that the company was established and put into production in December 2000, and has made profits for eight consecutive years. In 2008, the company plans a production of 20,000 units with an annual output value of RMB yuan 7.6 billion, which is twice as many as the initially set target in the project report. He said that the former site was unable to meet the needs of development as the company continually improved its production technology and rapidly enlarged its business. Based on the long-term urban planning and sustainable development of the company, Sichuan FAW Toyota Motor Co., Ltd began to consult with Chengdu Economic and Technological Development Zone in June 2007 and finally decided to settle down here.

A New plant with an output value of RMB yuan 11 billion

According to reports, Sichuan FAW Toyota Motor Co., Ltd relocation and expansion project involves a total investment of RMB yuan 1.3 billion. The first phase includes establishing complete stamping, welding, painting, general assembly production lines, and building a plant with an annual production capacity of 30,000 cars. The project will soon begin, and is expected to be completed and put into production by the end of 2010. After completion the output value will be more than RMB yuan 11 billion yuan with a rate payment up to RMB yuan 2.7 billion.
　　
Liu Jurong said that production and operation of the original plant will not be stopped before the new plant construction is completed. The company will transfer the production lines as soon as possible once the new plant is established, and the main products are still the medium-sized passenger car with the brand COASTER and the sport utility vehicle with the brand PRADO.

Car City taking shape in the east suburb of Chengdu

Yesterday, the two complementary projects with a total investment of RMB yuan 500 million -Toyota Textile Auto Parts Project, and Toyota Logistics and Distribution Project – also signed contracts to settle down in Chengdu Economic and Technological Development Zone. This is also the first batch of auxiliary projects with FAW Toyota to settle down in Chengdu Economic and Technological Development Zone. The project will be started in early August this year.
 
The Car City has been taking shape in the east suburb of Chengdu with another well-known auto manufacturer and an auto parts manufacturer settling here, both of which rank World Top 500 Companies. It is reported that the current auto industry park in Chengdu has gathered a number of projects including Chengdu FAW, Geely Automobile, Sichuan Automobile Industry Group, FAW Specialized Vehicles, Galaxy Automobile Group and so on, which mainly manufacture cars, passenger cars, trucks, buses, private cars and modified cars. In addition to car manufacturers, there are more than 40 enterprises producing auto parts in the park. Their main products cover engine assembly, gearbox assembly, wiring harness assembly, vehicle chassis, shock absorbers, car bodies, axles, automotive electrical apparatus, meters, car seats and interior parts, basically forming a matching system including Europe and U.S series and Japanese series of automotive parts.

It is revealed from Longquanyi District that Chengdu Economic and Technological Development Zone will form an annual production capacity of 30,000 to 500,000 cars in the next three to five years.