BYD fined as farm land used illegally
Source: Agencies |
October 15, 2010, Friday
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Print Edition
Print Edition
CHINA'S land ministry has fined auto maker BYD Co, a company backed by billionaire investor Warren Buffett, and seized buildings and equipment from a construction site where it was building a new factory in northern China.
The Land and Resources Ministry said yesterday that BYD was ordered to pay 2.95 million yuan (US$442,000) and forfeit the facility because most of the land for the project, in northwest China's Shaanxi Province, was zoned for farm use.
Though details are unclear, the dispute reflects the intense competition for land use in this country of 1.3 billion, which is struggling to maintain grain output amid rapid and often laxly controlled industrialization.
BYD was planning a factory with a capacity of 200,000 vehicles a year, near the provincial capital of Xi'an, after local officials agreed to let the company build on the 29-hectare site. It began construction late last year and has erected seven dormitories, workshops and other buildings, the ministry said in a notice on its website.
The notice also said a number of local officials were penalized, though it did not say how, for having violated land use rules by agreeing to the deal with BYD.
The Land and Resources Ministry said yesterday that BYD was ordered to pay 2.95 million yuan (US$442,000) and forfeit the facility because most of the land for the project, in northwest China's Shaanxi Province, was zoned for farm use.
Though details are unclear, the dispute reflects the intense competition for land use in this country of 1.3 billion, which is struggling to maintain grain output amid rapid and often laxly controlled industrialization.
BYD was planning a factory with a capacity of 200,000 vehicles a year, near the provincial capital of Xi'an, after local officials agreed to let the company build on the 29-hectare site. It began construction late last year and has erected seven dormitories, workshops and other buildings, the ministry said in a notice on its website.
The notice also said a number of local officials were penalized, though it did not say how, for having violated land use rules by agreeing to the deal with BYD.
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