LOS ANGELES - AC Propulsion, a global leader in electric drive development and manufacturing, announced plans to expand its production capacity and upgrade manufacturing processes with a new facility in Beijing. 

This expansion will more than double the company's manufacturing space in China, where AC Propulsion now builds electric drive systems at its manufacturing facility in Shanghai. 

"Our order book is overflowing, so we're expanding to meet future demand," said AC Propulsion CEO Tom Gage. "We are gratified to be participating in the vast growth of the Chinese electric vehicle market and expect to have the first AC Propulsion-powered vehicles on the road in China in 2011." 

The new Beijing manufacturing facility will produce electric drive systems for a range of automobile companies and vehicle converters selling in China and globally. AC Propulsion received incentives and other inducements to build the facility from the Beijing government, part of a China-wide program to promote the production and use of hybrid and electric cars in China over the next decade. China is committing more than $15 billion to this initiative. 

A marketing staff has already been hired for AC Propulsion's new Beijing facility. Much of the plant's manufacturing equipment will be produced and shipped from the company's U.S. headquarters in San Dimas, Calif. Production and other employees will be hired over the next several months. Further expansion in Beijing is planned.