GUANGZHOU, CHINA - Guangzhou Automobile Group Co., Ltd., and Japan-based Hino Motors Ltd. launched a joint venture and began work on a plant in the suburb of Conghua to produce and sell commercial vehicles.

Guangqi Hino Motors Ltd. is a 50-50 joint venture that will have two manufacturing bases — one in Guangzhou's Conghua and the other in Shenyang, the capital of Liaoning Province.

Guangzhou-based Yangcheng Automobile Co., Ltd. will be reorganized and a production facility set up for "Hino" brand heavy-duty trucks in Conghua. Shenfei Hino Automobile Manufacturing Co., Ltd. in Shenyang will also be restructured.

Involving an investment of 2.4 billion yuan ($327.42 million) and covering an area of 1.06 million sq. miles initially, the new Guangzhou base will specialize in the production and sale of heavy-duty and light-duty trucks.

The new Guangzhou base is expected to be ready in the middle of next year and will initially produce 20,000 heavy-duty trucks and 30,000 light-duty trucks.

The Shenyang base will involve an investment of 700 million yuan and will focus on the production and sale of passenger vehicles.

The joint venture plans to double the annual production capacity of the existing Shenyang base to 4,000 passenger vehicles by introducing new models and increasing investment.