Aug. 27, 2010 (China Knowledge) - Sinotruk (Hong Kong)<3808> on Aug. 23 inked a cooperative agreement with Chengdu Wangpai Motor Group Co Ltd to jointly build its southwestern commercial auto production base in Chengdu, Sichuan Province through a joint venture.
The Hong Kong-listed firm, which will hold an 80% stake in the JV, intends to inject RMB 1 billion into the auto project in the initial stage, and the firm's total investment for the project may reach around RMB 3 billion.
The base, which is ultimately to produce 400,000 commercial autos per year, may have an output of 100,000 heavy trucks in 2011 and may add an output capacity of 300,000 light trucks in 2015.
Reportedly, Sinotruk (Hong Kong) plans to add RMB 2 billion in an existing auto base in Mianyang, Sichuan Province to expand output capacity to 40,000 units.
The Mianyang project is expected to contribute RMB 6 billion in sales revenue in future.
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