Shaanxi Automobile Group Co Ltd  broke ground on a new mini van manufacturing facility at Baoji city of Shaanxi province in west China on May 15th.

Fang Hongwei, Chairman of Shaanxi Automobile Group, said the move underscores Shaanxi Auto's latest efforts to adjust development strategy and expand product mix.

Fang said the company plans to invest 3 billion yuan (US$438 million) on the project to make self-developed minivans. The new factory would be able to produce 100,000 minivans per year when the first phase of the project is completed in 2012. Eventually total capacity of the plant will be equivalent to 300,000 vehicles.

Shaanxi Automobile Group currently has technological cooperation with Germany's MAN AG to make heavy trucks. The Xi'an based commercial vehicle maker sold 76,000 heavy trucks and buses last year.

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