Ford Motor Co. said announced on Friday its plan to spend $490 million on building a third assembly plant in China in a move that will help the company in improving its performance in the world's strongest market.

The US automaker will run the new plant with its Chinese partner Chongqing Changan Automobile co. and Japan's Mazda Motor Corp.

Michigan-based Ford has already two plants in China, one in Chongqing and another in Nanjing.

Alan Mulally, Ford's CEO, said, "Today's announcement reinforces our commitment to the further expansion of our China operations to meet the continued rise in demand from Chinese consumers for world-class Ford products and services."

The plant is expected to open in 2012 and will produce Ford's Focus compact car with a starting capacity of producing 150,000 vehicles a year.

The new plant will enhance venture's production capacity to 600,000 from 447,000 in China.

An analysis of the figures compiled by J. D. Power & Associates showed that Ford ranks number 12 in terms of sales in China, lagging far behind Volkswagen, GM and Hyundai Motors.

(Via TopNews United States. Contributed by Aaron Ross)