Jiangling Motors Corp , one of the biggest China commercial vehicle manufacturers in China, is planning to invest US$1.2 billion to build an auto manufacturing plant in Poland, as per industry sources.

The new plant is designed to produce 400,000 units of vehicles per year.

Representatives of the Chinese auto maker will negotiate with officials from the relevant government bodies in Poland on the cooperation program in mid September.

Industry insider indicated that it will become the first manufacturing plant established by a Chinese enterprise in Europe, if the deal is nailed down.

JMC said in a statement that its Landwind series, which has a fairly good performance-price ratio, has passed the relevant tests in the country.

The company sold 51,722 vehicles in the first half of this year, up 14% year-on-year, according to an earlier filing with the Shenzhen Stock Exchange. Its vehicle sales in June alone amounted to 9,936 units, representing an increase of 11% over a year ago.