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German auto company Volkswagen will open a new plant in China's northern costal city of Tianjin next year.

The plant is to produce transmission kits for Audis.

The company says the project involves investment of nearly 600 million euros. Construction of the new facility has already been completed.

Production doesn't begin until May of next year. Initially, 240-thousand units are to be produced annually but that number is expected eventually to double.

Volkswagen set up the Tianjin plant in 2012 to produce advanced direct-shift gearboxes.