| 28-02-2008 China
Yuchai International Limited ("China Yuchai"), the leading manufacturer
and distributor of diesel engines in China, announced today that its subsidiary,
Guangxi Yuchai Machinery Company Limited ("Yuchai"), has entered into
an Equity Joint Venture Agreement with Zhejiang Geely Holding Group Co., Ltd.
("Geely") and Zhejiang Yinlun Machinery Co, Limited ("Yinlun"),
to form two joint venture companies in Tiantai, Zhejiang Province and Jining,
Shandong Province.
The joint venture companies ("JV Cos") will
be primarily engaged in the development, production and sales of a proprietary
diesel engine and its parts for passenger vehicles. The main product is a 4D2.0L
diesel engine and the technology for this new diesel engine will be purchased
by the JV Cos from Geely subject to certain specified design technology standards
being met. Geely will develop the first generation prototype of the diesel engine
and will purchase all its requirements from the JV Cos provided the conditions
of quality, price and production capacity are met. The
JV Cos will be responsible to continue the development of this technology and
diesel engine to commercial fruition including Euro-5 certification to meet China's
evolving emission standards. The total design production capacity of both JV Cos
will be 300,000 diesel units, with each joint venture company starting with a
capacity for 50,000 diesel engine units and then adding capacity to reach 150,000
units annually.
Yuchai will be the controlling shareholder with 52 percent
in both JV Cos and is responsible for the establishment of the JV Cos, construction
of production facilities and provision of engine parts to the JV Cos. Geely and
Yinlun with a 30 percent and 18 percent shareholding respectively in both JV Cos,
are responsible for procuring all basic supplies and local government support
for the projects.
In the first 11 months of 2007, Geely was ranked as the
8th largest automaker in China with nearly 200,000 cars sold. During this period,
total number of passenger vehicles powered by 1.6L to 2.0L engine sold in the
entire China market reached approximately 1.4 million units, reflecting a robust
58% year-over-year growth.
About
China Yuchai International
China Yuchai International Limited, through
its subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"),
engages in the manufacture, assembly, and sale of a wide array of light-duty,
medium-sized and heavy-duty diesel engines for construction equipment, trucks,
buses, and cars in China. Yuchai also produces diesel power generators, which
are primarily used in the construction and mining industries. With over 30 regional
sales offices and 460 authorized customer service centers, the Company distributes
its diesel engines directly to auto OEMs and retailers and provides maintenance
and retrofitting services throughout China. Founded in 1951, Yuchai has established
a reputable brand name, strong research & development team and significant
market share in China with high-quality products and reliable after-sales support.
In 2007, Yuchai sold approximately 383,000 diesel engines and was consistently
ranked No. 1 in unit sales by China Association of Automobile Manufacturers.
Editor:Ida
Zhang from Chinabuses.com
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