On June 7, Yuchai Machinery Co., Ltd. concluded a framework agreement with Baotou Beiben Heavy-duty Truck Co. Ltd. on establishing a joint venture. Under the agreement, a heavy-duty truck engine manufacturing base will be built in Baotou with a total investment of 1.51 billion yuan from the two sides, according to sources.

According to the agreement, the joint venture is named "Baotou Beiben Yuchai Engine Co., Ltd.", the investors include Yuchai Machinery Co., Ltd, Baotou Beiben Heavy-duty Truck Co. Ltd., Inner Mongolia First Machinery Group Corporation and Y & C Engine Co., Ltd., and the joint venture will primarily manufacture YC6A, YC6L, YC6MK and YC6K vehicle-specific diesel and gas engines. The project will be constructed in three phases and is expected to turn out 100,000 units annually.

It is learned that all China's top eight heavy-duty truck manufacturers but Beiben have independent engine plants and the situation of "Yuchai in the south, Weichai in the north" has long prevailed in the traditional diesel engine market. Yuchai has not only achieved a new breakthrough in the north through the cooperation with Beiben, and Beiben has removed the bottleneck of being controlled in terms of engine through advantage complementation and resource sharing.

(Huang Yu/Beijing Times)