Local production by Chery Jaguar Land Rover this year

Highly automated assembly line at the Changshu plant of Chery Jaguar Land Rover to ensure that production can start in the fourth quarter of the year as scheduled.[Photo/China Daily]

Production of vehicles by Chery Jaguar Land Rover is set to start in the fourth quarter of the year as construction on a plant in Changshu, Jiangsu province is underway as scheduled.

The 50-50 joint venture Chery Jaguar Land Rover Automotive Co Ltd is capitalized with 10.9 billion yuan ($1.75 billion) and headquartered in Changshu.

A research and development facility will also be established in the neighboring city of Shanghai.

According to the company, press and body shops at the Changshu plant started test runs this month.

The full plant covering some 80 hectares will be complete and ready for production in the fourth quarter of the year. Its annual production capacity is designed to be 130,000 units.

The company said with a globally advanced manufacturing facility, talented workers and the support of leading suppliers, the joint venture will bring Chinese consumers world-class Jaguar and Land Rover cars as well as its own-brand vehicles.

"We want to be the premium automotive manufacturer in China's premium car market, and to inspire excellence and exceed our customer's expectations," said Chris Bryant, president of Chery Jaguar Land Rover.

As one of the world's leading premium automakers, Jaguar Land Rover's sales in China have grown strongly in recent years.

In 2013, it sold 95,237 units in China, a 30 percent increase over the previous year.

To meet the rising demand, its joint venture with Chery was established in November 2012.

A year later, the main building was completed. Equipment installation is now underway.

Zhu Guohua, deputy president of the joint venture, said that "2014 is a very important year for Chery Jaguar Land Rover as we move from facility construction to overall production".

In a statement the company said "Chery Jaguar Land Rover inherits a pure British lineage from Jaguar Land Rover and is committed to providing Chinese consumers with the premium brand experience that they desire".

Jaguar has been a British legend for 76 years while Land Rover has been one of the leading innovators and manufacturers of luxury SUVs for over 65 years, said the statement.

The company said the joint venture is equipped with globally leading manufacturing facilities and uses global standards and management systems to guarantee world-class quality levels.

"We are building world-class facilities here in China," Bryant said. "We are very pleased with the progress we are making."

Recruitment and training of staff are also underway as planned.

The company said it has now hired more than 1,000 employees "with extensive experience and skills".

The number is expected to reach about 2,500 by the end of 2014.

Staff members are receiving training in China or in the UK to be better prepared for the joint venture's full operation later this year, according to the company.

It added that the joint venture is also working closely with world-class suppliers to ensure the high quality of parts and equipment.

Chery Jaguar Land Rover said it takes a shared value approach to connect the company's long-term success with the sustainable development of the society and conservation of nature.

The company said its manufacturing facility integrates sustainable development concepts in every production process and is determined to create a world-leading "green factory model".

The plant is equipped with a range of globally advanced, environmentally friendly equipment and facilities that will enable the company to deliver these values.