GM Wins Environmental Approval for New $1.1B Plant in China

(FOX Business) - General Motors has won approval from an environmental authority group in China for a new $1.1 billion vehicle assembly plant.

While the Detroit automaker says it has not yet decided on plans for the facility, it would have an eventual annual capacity of 300,000 vehicles, according to the Hubei Environmental Protection Bureau.

However, it is likely that GM will have to attain several more steps of approval before it gets the go-ahead to start construction.

General Motors has been expanding production capacity in China and continues to see year-over-year improvements amid strong demand in the world's biggest auto market. In January, GM said sales grew 25.3 percent in China, its second highest-ever sales for the month.

In 2011, sales climbed 8.3 percent to a record 2.5 million vehicles.

Shanghai GM, a joint venture between the automaker and state-owned SAIC, already has four vehicle manufacturing plans in China, two of which are currently being expanded.

Read more: FOX Business