Anhui-based Chery has already begun work on its new bus factory in Guizhou’s capital of Guiyang, Economic Observer News reported today. The manufacturer has invested 1.2 billion yuan ($190.37m) in the site, which has been confirmed to begin production by the end of the year. The project is reportedly one of Chery’s most difficult in recent years.

The site, which will focus specifically on producing buses and new energy vehicles, will possess a multitude of facilities, including a 32,000 sq. m. painting and assembly hall. The site’s annual output is estimated to be worth four billion yuan ($634.57m). It will generate 240 million yuan ($38.07m) in tax revenue. Its total production capacity is expected to total 30,000 vehicles by 2020.

Chery purchased the rights to the site from local manufacturer Wanda Vehicles. Prior to the acquisition, Chery’s only bus factory in the country was a small site in Wuhu, Anhui, which presently possesses an annual production capacity of only 1,500 units.