Construction on a new energy vehicle production center started in the Nanhai New Area of Weihai, Shandong province on March 8. The center received a total of 10 billion yuan ($1.44 billion) in investment.

The center is funded by Chinese NEV manufacturer Sky-well New Energy Automobile Group Co and involves a total construction area of 380,000 square meters.

A new energy vehicle production center starts construction in the Nanhai New Area of Weihai, Shandong province on March 8. [Photo by Wang Xiaogen/chinanews.com]

It will build production lines for vehicle metal stamping, welding, painting, and final assembly, as well as other facilities such as a key core parts factory and storage and distribution centers.

The project is designed with an annual production capacity of 200,000 vehicles and is expected to generate more than 20 billion yuan in annual output.

Weihai Nanhai New Area is currently home to many automotive and auto parts enterprises involving in tires, crank axles, and automotive electronics.

Local authorities said that the new energy vehicle project will help attract more related auto parts enterprises to the region and further promote the development of its automobile industry.

The local government has taken measures to guarantee that construction proceeds smoothly on new projects in the area while it carries out coordinated epidemic prevention and control measures.