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December 21, 2004


DONGFENG MOTOR COMPANY TO BUILD NEW ENGINE PLANT IN HUADU
Production of Nissan's new generation of global engines to begin from 2006


Guangzhou - Dongfeng Motor Co. Ltd. (DFL), the joint venture between Nissan Motor Co., Ltd. (Nissan), and Dongfeng Automotive Investment (DFI), today announced that it will start the construction of a new 3 billion RMB (USD $362 million*) engine plant at Huadu, Guangzhou in Guangdong Province.

The new engine facility will begin operations in early 2006. By 2008, production capacity is expected to rise to 360,000 units, with a workforce of 1,500 people.

The new plant, which will incorporate casting, machining and assembly shops, will be built on a 390,000mē site in Huadu. It will assemble Nissan's new global generation of environmentally-friendly engines, and supply to DFL passenger vehicle plants in Guangzhou and elsewhere in China.

 "The construction of the engine plant is a significant step forward in DFL's strategic development in China, and it will provide a solid base for our business expansion. Through this plant, we will introduce Nissan's very latest engine technology to Chinese customers. Nissan's new gasoline engine series offers the best balance of fuel efficiency and powerful acceleration,"  said Mr. Mamoru Yoshida, Managing Director of DFL.

DFL began operations at two new vehicle assembly plants in 2004. In May, the company opened the Huadu Plant where the Nissan Sunny and Bluebird are manufactured. In September, DFL inaugurated its new plant in Xiangfan, Hubei Province where the Nissan Teana is made. The addition of a new engine assembly plant will further increase the localization and competitiveness of Nissan products in China. 

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