BERLIN (Reuters) -- Volkswagen will agree terms to build another factory in China during Chinese Premier Wen Jiabao's visit to Germany, as Europe's largest carmaker expands operations in the world's biggest auto market, two officials said.
Volkswagen currently operates six car and parts plants in the country.
VW CEO Martin Winterkorn will sign a declaration of intent with Jiabao on a new plant when the Chinese premier and German Chancellor Angela Merkel visit VW's headquarters in Wolfsburg, Germany, on April 23, the officials said.
The new factory will require investment of less than 300 million euros ($394 million) and will be based in China's western province of Xinjiang with an annual capacity of about 50,000 vehicles.
Winterkorn and Jiabao will also sign a second contract to extend VW's joint venture FAW Automotive Company by 25 years, one of the officials said.
VW, the first overseas carmaker to enter China three decades ago, said last year it planned to spend 14 billion euros on new plants and products in China through its joint ventures.
VW spokesman Eric Felber declined to comment.
Automotive News Europe contributed to this report