Chongqing Changan Automobile Co began construction on a new production facility for mini-vans and mini-trucks in Dingzhou in north China's Hebei province on Thursday July 2nd.

The new facility, to be located on the south of its existing Hebei Chang'an Automotive Co unit, is expected to boost Chang'an annual production capacity in the region to 400,000 units when the first phase of construction is completed in 2010 and will eventually to 500,000 units when the entire expansion work is completed.

"We plan to invest 2 billion yuan (US$ 293 million) over the next few years to back the expansion, " Chang'an president Xu liuping said at a ceremony marking the event.

Changan's existing Hebei unit was established in July, 2002 with an annual production of 200,000 mini-trucks and mini-buses a year. Last year the division sold 160,000 vehicles in total.

Last month Changan also unveiled plans to build a new production facility for small vehicles with an initial investment of 2.5 billion yuan in southwestern city of Chongqing. The small car facility will have an annual production capacity of 300,000 units when it starts operations in 2012.