Jianghuai plans to set up a joint-venture engine company with Chaochai
On September 26th, Anhui Jianghuai Automobile Co., Ltd. held a board of directors meeting where they reviewed and approved the proposal to establish a joint venture with Dongfeng Chaoyang Diesel Engine Co., Ltd. This strategic move marks a significant step in expanding JAC's engine production capabilities and strengthening its supply chain.
Under the proposed agreement, the joint venture will focus on producing the Series 102 diesel engines specifically designed for JAC's light vehicles and passenger cars. Once fully operational, the facility is expected to achieve an annual production capacity of 50,000 units, supporting JAC's growing demand for reliable and efficient powertrain solutions.
The total investment for the joint venture is set at 25 million yuan, with 20 million yuan allocated for construction and infrastructure, and 5 million yuan as working capital. The ownership structure will see Dongfeng Chaoyang Diesel Engine Co., Ltd. holding 90% of the shares, while Anhui Jianghuai Automobile Co., Ltd. will own the remaining 10%. This arrangement reflects the strong partnership between the two companies and their shared vision for long-term growth in the automotive industry.
This collaboration is expected to enhance JAC's competitiveness by ensuring a stable supply of high-quality diesel engines, while also allowing Dongfeng Chaoyang to expand its market presence. The joint venture is anticipated to create job opportunities and contribute to regional economic development.
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