A new auto plant operated by Volkswagen Group company Shanghai Volkswagen (SVW) in partnership with Chinese carmaker SAIC Motor Corporation will eventually create 3,700 jobs.

The project was given the green light two years ago, and is now constructing the plant in Yizheng, Eastern China, around 300km North-West of Shanghai.

This is the second plant that will produce VW Polos in China, and it will also produce Škoda models in the future. In total, it will have capacity to assemble 300,000 cars per year.

China is VW’s largest sales market, and there are plans to increase production capacity in the country by 2018 to 4m vehicles annually.