On May 30, 2013, Yuchai Corporation and China North Industries Group Corporation (hereinafter referred to as the Weapon Group) signed the Beiben Yuchai Engine Joint Venture Framework Agreement in Beijing. The two parties jointly established a heavy-duty vehicle engine production base in Baotou City. Wu Qiwei, general manager of Yuchai Electric Power Co., Ltd., Bai Xiaoguang, chairman of the First Arm Industry Group Co., Ltd., Li Yuhui, chairman of Yuchai United Power Co., Ltd., and Li Zhiliang, chairman of the Beibei Group of CNPC, respectively, signed the framework agreement. Guo Qijun, deputy chairman of the People's Political Consultative Conference of Inner Mongolia Autonomous Region, Secretary of the Baotou Municipal Committee Guo Jiejun, deputy mayor Xu Delin of Baotou City, Yin Jiaxu, chairman of the Weapon Group, Yu Ping, chairman of Yuchai Corporation, and Jiao Kaihe, general manager of the Ordnance Group, witnessed the signing ceremony. The name of the joint venture company is Baotou Beiben Yuchai Engine Co., Ltd., which is located in the new planning area of ​​Baotou City Equipment Manufacturing Industry Park. The capital contributions of the joint venture company include Guangxi Yuchai Machinery Co., Ltd., Baotou Beiben Heavy Vehicle Co., Ltd., Inner Mongolia First Machinery Group Co., Ltd., and Yuchai United Power Co., Ltd. with a total investment of 1.51 billion yuan and a planned area of ​​460 acres. Phase III construction. After the completion of the project, it will reach the capacity of 100,000 YC6A, YC6L, YC6MK, YC6K series diesel and gas engines. Weapon Group is a large-scale group company that serves the national defense security and national economic development. The subsidiary Bei Ben Heavy Duty Truck and One Machine Group are mainly engaged in the manufacture of heavy vehicles and equipment. The two companies are very optimistic about Yuchai YC6A, YC6L, The YC6MK and YC6K series engines are intended to use these Yuchai powers on their production heavy trucks. The Weaponry Group has never had an independent engine production company. Through strategic cooperation with Yuchai Corporation, this time, it will strengthen and improve the supply chain of its core industries and enhance its market competitiveness. Weapons Group and Yuchai had several exchanges and discussions with each other in the previous period, and they plan to jointly invest in the construction of a heavy-duty vehicle engine manufacturer in Baotou, and signed a letter of intent for joint venture in August 2012. The signing of the Beiben Yuchai Engine Joint Venture Framework Agreement signifies a substantial step in the joint venture project. Through the cooperation of the project, the two parties concluded the asset-linked strategic partnership. Under the background of the concentration of domestic auto groups and the production of engines, Yuchai has been able to increase the power of Yuchai series diesel engines through the cooperation with the Group's top-ranking automotive plant Beiben Heavy Duty Trucks and the influence of the Group. The popularity of the engine and market acceptance, especially in favor of the market cultivation and breakthrough of Yuchai Heavy Machinery, will enable Yuchai Heavy Machinery to gain a larger market share in the heavy truck market, increase profit growth points, and consolidate and expand Yuchai's living space. . Fuping said at the signing ceremony of the framework agreement that the top eight automakers in China's heavy trucks, except that Beiqi Heavy had no own engine plant, and others, most of which were equipped with their own engines. Through cooperation with Beiben Heavy Duty Truck, Yuchai truly realizes complementary advantages, resource sharing, and win-win cooperation, forming an overall competitive advantage in the field of heavy-duty truck engines, thus opening up a new breakthrough in Yuchai's heavy machinery market. Yin Jiaxu believed that the Ordnance Group now pays more attention to the civilian products market. Although the development of Beiben Heavy Duty Truck is good, it is not okay to not have its own engine plant. Weapons Group has been seeking partners, and Yuchai has a significant position in the industry, engine technology. It is one of the best in China. The successful cooperation between the two sides will surely have a profound impact on Beiqi Heavy.
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