DONGFENG Motor Corp will invest 7.6 billion yuan (US$1 billion) in a production center for own-brand passenger cars in Wuhan in central Hubei Province, the Shanghai Securities News said, citing unidentified sources.

The production center, due to begin operations in 2008, will have an initial capacity of 120,000 cars a year, which will eventually rise to 330,000, the Chinese-language newspaper said, without providing a timeframe. The company will also make engines, the report added.