Hoifu Energy (00007 HK) announced that it would establish a joint venture with Yuchai Group for international investment operations. The company and Yuchai will hold a 51% stake and a 49% stake in the joint venture respectively, with a term of 15 years and a total share capital of 3 million US dollars including 1.53 million US dollars contributed by the company and 1.47 million US dollars contributed by Yuchai.

The joint venture will be mainly engaged in investment holding, covering engine, mechanical equipment, special vehicle, parts, energy and petrochemical product investment and sales.

Yuchai Machinery Co., Ltd. is a holding subsidiary of Yuchai Group. With an annual business turnover of over 20 billion yuan and annual engine sales of 550,000 units, Yuchai Machinery Co., Ltd. is China's largest independent diesel engine manufacturer. The group concluded the JV agreement with the aim of establishing longstanding relations with its partner in joint efforts to seek opportunities and promising business projects.

(Source: Infocast)