China Yuchai International Enters Into Joint Venture to Expand Heavy-Duty Diesel and Gas Engine Production in China
SINGAPORE--June 4, 2013: China Yuchai International Limited ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") and GYMCL's joint venture company,Y&C Engine Co., Ltd. ("Y&C Power"), has entered into a Framework Agreement with Baotou Bei Ben Heavy Duty Truck Co., Ltd. ("Bei Ben"), and Inner Mongolia First Machinery Group Co., Ltd. ("Yiji Group"), to form a new joint venture company ("JV Company"), to be located in Baotou, Inner Mongolia. The JV Company will have a registered capital of RMB 600 million.
The new JV Company will focus on the production of GYMCL's diesel and gas engine models YC6A, YC6L, YC6MK and Y&C Power's advanced diesel and gas engine model YC6K to meet the needs of Bei Ben's heavy-duty and medium-duty trucks and buses. GYMCL's service network and the repair and maintenance centres of Bei Ben will provide after-sales service for all engines sold by the JV Company. The annual production capacity of the JV Company is estimated to reach 100,000 units, subject to the prevailing market conditions.
Y&C Power is the joint venture company formed in 2009 between GYMCL, China International Marine Containers Containers Group Ltd and Chery Automobile Co., Ltd to produce the YC6K diesel engine.
GYMCL and Y&C Power will together hold 50% of the JV Company with Bei Ben and the Yiji Group holding the other 50%. Bei Ben, one of the top five truck manufacturers in China, and the Yiji Group are subsidiaries of China North Industries Group Corporation ("Norinco"). Norinco is one of China's 500 largest companies principally engaged in the manufacture and production of vehicles and equipment.