China’s Yuchai engine manufacturing technology transferred to Vietnamese firm
Yuchai, China’s leading engine manufacturer, has transferred manufacturing technology and exclusive distribution rights for Yuchai engine products in Southeast Asia and South Korea to Vietnam’s Kim Long Motor.
The two sides announced the transfer last Friday in Nanning city, Guangxi province, China.
The move marked a significant development following a comprehensive strategic cooperation agreement between Yuchai and Kim Long Motor.
It also followed a groundbreaking ceremony held for the Kim Long Hue engine manufacturing factory and the launch of the KimLong99 brand bus, which features the new-generation Yuchai K11 engine, at the Kim Long Motor Hue Industrial Park on August 23.
The exclusive licensing agreement covers not only the transfer of engine manufacturing technology but also technical services for building digital systems and the provision of production machinery and equipment at the Kim Long Hue engine manufacturing factory.
This factory represents a $260 million investment and features an automation level of over 90%.
Qiwei Wu, CEO of Yuchai speaks at a ceremony announcing the transfer of manufacturing technology and exclusive distribution rights for Yuchai engine products in Southeast Asia and South Korea to Vietnam’s King Long Motor on September 6, 2024 in Nanning city, Guangxi province, China. Photo courtesy of the government’s news portal.
The factory will produce a range of engines for various applications, including engines for automobile manufacturing, marine activities, power generators, agricultural machinery and civil construction machines.
The partnership between Kim Long Motor and Yuchai aims to boost local production capacity and enhance the image and reputation of Yuchai’s high-quality engines in the region, executives said.
"We expect this partnership to meet growing demand for engines in Vietnam and the regional market,” said Qiwei Wu, CEO of Yuchai Group.
Dao Viet Anh, member of the board of directors of Kim Long Motor, commented: “We are embarking on an exciting journey to expand market opportunities for Yuchai engine products in Vietnam and the region. This not only contributes to the development of Vietnam’s automotive industry but also strengthens the friendship and cooperation between Vietnam and China”.
Yuchai has established itself as a global leader in the engine manufacturing industry and become well known for its advanced technology and commitment to sustainable development. With this new agreement, Kim Long Motor will harness Yuchai's advanced technology to produce a variety of engine products for the Vietnamese and ASEAN markets.
This marks the first time advanced technology has been transferred to Vietnam for the production of modern automobile engines and engines for other industries, fulfilling a long-standing dream for many generations of Vietnamese people while contributing to the country’s industrialization and modernization process, the Vietnamese government's news portal reported.
On August 27, in Ho Chi Minh City, Phuong Trang Group Investment JSC (FUTA Group), Kim Long Motor Hue JSC and Yuchai signed a comprehensive strategic cooperation agreement focused on engine production and manufacturing in Vietnam.
On August 23, Kim Long Motor and Yuchai kicked off the construction of a $260-million vehicle engine factory in the central province of Thua Thien Hue.
The facility is located in the 600-hectare Kim Long Motor Hue Industrial Park, specialized in automobile assembly and manufacturing, within the Chan May-Lang Co Economic Zone.
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