CHICAGO - Ford Motor Company announced Thursday the creation of a new $760-million assembly plant in the eastern Chinese city of Hangzhou, saying it hopes to greatly expand its growth in China in the coming decade.

According to Ford, the new Hangzhou plant will increase Ford's total Chinese production to 1.2 million passenger cars annually by 2015, which is twice the current production capacity.

John Fleming, Ford Executive Vice President for Global Manufacturing and Labor Affairs, commented that the new move in China signified the most rapid expansion Ford has undertaken in the last 50 years. Fleming said Ford expected the Chinese market would grow up to 30 to 40 million units between 2012 and 2020, and Ford hoped to position itself to take advantage of the opportunity.

"We are maintaining capacity size to demand, and we know that our market in China is growing enormously, so it gives more capacity in one of the most important markets in the world," said Fleming.

According to Ford, the Chinese auto market is currently experiencing a five percent growth rate, with 18.5 million vehicles sold last year.

By the end of 2015, Ford says it plans to introduce 15 new car models to China and compete more aggressively in the market.

The automaker added that by expanding in China, Ford was also working towards its goal of more global-oriented production. By 2015, Ford said it hoped to increase vehicle sales by 50 percent around the world, to 8 million units annually.

Additionally, the creation of the Hangzhou plant comes on top of a $600 million investment Ford announced just two weeks ago for the automaker's existing joint-venture in Chongqing, Changan Ford Mazda Automobile.

Ford will extend its assembly line capacity in Chongqing by 350, 000 passenger vehicles, in addition to constructing a new body and paint shop.

With the Chongqing expansion and the new Hangzhou plant, Ford' s Chinese investment total is now up to approximately $4.86 billion.