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Chinese Joint Venture To Focus On Engines

Posted on June 4, 2013

China Yuchai International Limited announced today that its main operating subsidiary, Guangxi Yuchai Machinery Co. 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. and Inner Mongolia First Machinery Group Co., Ltd. to form a new joint venture company.

The new company, which will have a registered capital of RMB 600 million (approximately US$98 million) and be located in Baotou, Inner Mongolia, will focus on the production of GYMCL's YC6A, YC6L, YC6MK diesel and gas engines and Y&C Power’s YC6K diesel and gas engine to meet the needs of Bei Ben's heavy-duty and medium-duty trucks and buses.

GYMCL and Y&C Power will together hold 50% of the joint venture with Bei Ben and the Yiji Group holding the other 50%. Bei Ben, said to be one of the top five truck manufacturers in China, and the Yiji Group are subsidiaries of China North Industries Group Corp., one of China's 500 largest companies principally engaged in the manufacture and production of vehicles and equipment.

GYMCL's service network and the repair and maintenance centers of Bei Ben will provide after-sales service for all engines sold by the joint venture. The annual production capacity of the 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.