Chinese JV to be formed for heavy-duty diesel and gas engine production

  • 10-Jun-2013 01:38 EDT

China Yuchai International Ltd.’s main operating subsidiary, Guangxi Yuchai Machinery Co. Ltd. (GYMCL), and GYMCL’s joint venture (JV) company Y&C Engine Co., Ltd. have entered into a framework agreement with Baotou Bei Ben Heavy Duty Truck Co., Ltd. and Inner Mongolia First Machinery Group Co., Ltd. (Yiji Group) to form a new 50:50 JV company to be located in Baotou, Inner Mongolia. The new company will focus on the production of GYMCL’s diesel and gas engine models YC6A, YC6L, YC6MK, and Y&C Engine’s advanced diesel and gas engine model YC6K to meet the needs of Bei Ben’s heavy- and medium-duty trucks and buses. GYMCL’s service network and the repair and maintenance centers of Bei Ben will provide after-sales service for all engines sold by the JV. Annual production capacity of the JV company is expected to reach 100,000 units, and the company will have a registered capital of RMB 600 million. Bei Ben, one of the top five truck manufacturers in China, and the Yiji Group are subsidiaries of China North Industries Group Corp.

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