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 forward in expanding JAC's engine production capabilities and strengthening its supply chain. Under the proposed agreement, the joint venture will focus on manufacturing the Series 102 diesel engines specifically for JAC's light vehicles and passenger cars. Once fully operational, the new facility is expected to achieve an annual production capacity of 50,000 units, supporting JAC's growing demand in the domestic and international markets. 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 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 efficiency, reduce costs, and improve the quality of engines supplied to JAC's vehicle lineup. It also demonstrates JAC's commitment to expanding its vertical integration and securing a stable supply of high-performance engines. With the joint venture on track for development, both companies are poised to benefit from enhanced market competitiveness and greater operational flexibility in the years ahead.

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