Ford's chief operating officer has confirmed that the car manufacturer's new plant in China will have an initial capacity of 160,000 vehicles per annum.

As part of its US$1 billion expansion programme in China, Ford has joined forces with its Japanese partner Mazda to build a new factory in the country in the eastern city of Nanjing.

Ford only opened its first factory in the rapidly expanding Chinese market last year but now aims to triple output in China to around 65,000 units this year.

According to Reuters, Jim Padilla admitted to analysts at a conference in Michigan that Ford had been slow to enter the Chinese market.

"We have been a late starter in China. But we are moving and we are moving fast," he stated.

At the end of 2003, Ford only accounted for one per cent of the Chinese market with sales of 17,000 vehicles.

This compares unfavourably with market leader Volkswagen's one-third share and GM's 19 per cent.

Car manufacturers use platinum and palladium in autocatalysts to control harmful pollutants. Therefore a rise in car production implies an increased demand from car makers for the metals.