SHANGHAI, Apr. 1 (SMM) - Zhejiang Wanfeng Auto Wheel Co. is setting up a joint venture with Chongqing Dongsheng Aluminium Industry Co. to make 3 million aluminium alloy wheels a year.

Registered capital for the jv company to be located in Chongqing is 200 million yuan ($32 million) while total investment for the wheel project is over 441 million yuan, Wanfeng Auto said in a filing to Shenzhen Stock Exchange today.

Molten aluminium will be supplied by Dongsheng Aluminium to Wanfeng Auto to reduce energy consumption and to cut production costs, it said.

The project, which takes one year and a half to construct, is expected to generate an annual revenue of 654 million yuan and a net profit of 111 million yuan, it said.