Urumqi's development zone holds a signing ceremony between the zone's government and GAC Motor.[Photo provided to Chinadaily.com.cn]

The government of Urumqi's Economic and Technological Development Zone in Xinjiang Uygur autonomous region inked contracts with Guangzhou Automobile Group Motor CO (GAC Motor) on June 5, with GAC to invest 1.6 billion yuan ($243 million) to construct a self-owned branded automobile project in Xinjiang.

GAC Motor’s Xinjiang automobile manufacturing project will be located in the development zone, covering around 33 hectares of land. The project will be divided into two phases. Once completed, it is anticipated to manufacture around 200,000 automobiles a year.

Xue Jihai delivers a speech at the signing ceremony.[Photo provided to Chinadaily.com.cn]

The automobile project is one of Guangdong province’s most important supports for Xinjiang, and is the second Chinese motor company to settle in the development zone after the joint venture brand SAIC Volkswagen settled there in 2012.

Xue Jihai, the Party chief for the development, was on hand at the signing ceremony and delivered a speech. Xue said that more than 50 key projects have settled in the development zone with more than 150 billion yuan worth of investment, helping to fill or even eliminate a gap in Xinjiang's manufacturing.

Wu Song (L), general manager of GAC Motor, presents an automobile model to Cheng Gang, director of Urumqi's development zone.[Photo provided to Chinadaily.com.cn]

Xue added that automobile and equipment manufacturing have become the new economic growth poles in the development zone, and the local government will try its best to serve the companies and ensure the smooth maturation of the GAC project.

Responding to Xue, Wu Song, general manager of GAC Motor, said that Xinjiang, sitting astride the Silk Road Economic Belt, has a geographic advantage in that it links domestic and foreign markets; an advantage expected to contribute to automobile sales.

He also said that the company will try to manufacture vehicles such as the Trumpchi SUV in Xinjiang due to market demand. More electric and other new energy automobiles are expected to be produced as well.

A delegation led by Zhu Xiaodan, the governor of Guangdong province, also surveyed the development zone for the automobile project.

About GAC Motor

GAC Motor is located in Hualong town, Guangzhou, China. Guangzhou Automobile Group Motor Co (GAC Motor) is the implementing carrier of the "original brand manufacture" project of the GAC Group. The project is a major initiative for the GAC Group in its pursuit of scientific development and independent innovation.

Edited by Peter Nordlinger