Geely, along with the vast majority of other Chinese manufacturers, are looking at the export market as the next big growth engines to offset a slowing Chinese domestic market. Geely has signed a deal with Guangxiâ€™sÂ QingzhouÂ government to set up a car and engine manufacturing plant in the cityâ€™s tax free zone with a view to making the factory a major factor in Geelyâ€™s export plan.
Initial production has been set at 200,000 vehicles per year and 200,000 engines. Geelyâ€™s high level staff, including the CEO Li Shu Fu have been making regular visits toé’¦å·ž government. Li Shu Fu has announced that he will continue to look at possibilities in investing in the Guangxi region, one of Chinaâ€™s poorer provinces. QinZhou Government has set aside a great deal of land for the new factory and also living facilities.Â According to Chinese media reports Geely staff are already on the ground in Qinzhou area designing the factory and also reviewing land use rights. Planning is expected to take 2-3 years and the factory should be completed in 2015, initial production is set at 100,000 units per year and will increase in the second year.
Geely currently has 10 factories in China, in Zhejiang, Gansu, Sichuan, Shandong, Heilongjiang etc most of which are poorer inland provinces â€“ great for tapping second and third tier markets but far from sea ports, with exports being Geelyâ€™s next big step the Guangxi factory seems the next logical step.