Renault’s very first factory in China is now open for business after an initial investment of almost $950 million (€870 million).

Renault’s very first factory in China is now open for business after an initial investment of almost $950 million (€870 million).

The company with the diamond logo signed a partnership with Dongfeng a couple of years ago to work on a new factory in Wuhan to serve the domestic market. Fast forward to this week, the plant is now operational and it encompasses a vehicle and powertrain plant along with a research and development center.

The Kadjar compact crossover is being put together for the Chinese market at this plant which has an initial production capacity of 150,000 units per year. Renault points out the factory can make up to 300,000 vehicles when running at full potential. The Kadjar is programmed to go on sale in China next month with a 2.0-liter gasoline engine built locally, but a turbocharged 1.2-liter will be imported from Europe in the months to come.

Later this year, the Kadjar is going to be joined at the factory by a larger SUV belonging to the D segment. Although the vehicle’s identity has not been disclosed, it can only be the Koleos successor believed to be called Maxhton and set to be offered with a seven-seat layout.

The all-electric Fluence ZE sedan will be launched in 2017 in China and is going to be produced at the same factory in Wuhan. However, it won't wear the Renault badge as Dongfeng will sell it under a local brand.

Besides starting production in China, the company is also expanding its dealership network which is slated to grow from the current 125 to 150 showrooms before the end of this year.

Source: Renault

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Renault inaugurates first Chinese factory