News

WEICHAI Invests $ 2.2 bn for New Engine Manufacturing Bases in China.

Issued at 2010-07-12



On June 21st, 2010，Chinese engine giant--- WEICHAI Group announced the investment of RMB15 bn ($2.2bn) to build its new manufacturing bases in Weifang City of Shandong province, where it is headquartered.

WEICHAI, as Chinese biggest high-powered engine manufacturer, its product line comprises engines, gearbox, axle and other important parts, which widely applied to heavy-duty truck, construction machinery and large buses. Its subsidary---WEICHAI Power Foundry & Forging Co.,ltd is on the list of 2010 China Foundries Top 100 complied by China Foundry Association (CFA).

According to the strategy, WEICHAI is to realize sales revenue at RMB 50 bn ($7.35bn) in 2010.The figure will reach to RMB 80 bn ($11.8bn) by 2015 and up to RMB 100 bn ($14.7bn) by 2020. The production capacity of engine ranging from 4 to 15 liter will surge to 1.5 million units by 2015, up to 2 million by 2010.

Once its two manufacturing plants put into operation, in terms of capacity ,WEICHAI will run neck and neck with Cummins, the current world largest independent engine manufacturer based in US.

 “Since October, 2010, WEICHAI’s engines order has been so strong that unavailability even occurs in some regions” quoted Mr.Tan Xuguang, president of WEICHAI.

WEICHAI forecasted that in the first half of 2010, its sales volume will total 330,000 units, the same as last whole year.

Mr.Tan pointed out that such grand objective was made based on the rational and careful market analysis.

He noted that in the prospective 10 years, China’s booming demand of high and medium-powered diesel engines laid a strong foundation for the full-gear operation of engine manufacturers. Heavy-duty trucks, for instance, in China, the whole manufacturing capacity of 1.5 million would double by the end of 2015. According to WEICHAI’s 40% domestic market share holding, within 5 years, the market demand will surge to 1.2 million units.

Apart from engine industry, statistics revealed that, stimulated by China’s bailout of RMB 4 trillion ($588bn) and new wave of across-country’s infrastructure construction, sectors like commercial vehicles, construction machinery, shipbuilding will also expand in fold within next 5 years.

Meanwhile, R&D and products marketing strategy were planned to facilitate its manufacturing capacity.

In Nov.2009,WEICHAI’s national R&D center was approved by The Ministry of Science and Technology of P.R.China, the only national level power assembly engineering technological center, which expected to be built up by the end of 2010. By then, this new center along with other R&D bases in Jinan City (Shandong province), Xi’an (Shaanxi Province), Shanghai in China and others in Europe and USA, will establish a global R&D network.

At the same time, WEICHAI Group is developing new type of oil-electric hybrid engine, aiming at driving fuel economy up by 30%, lowering the gas emission by 30%, with only 30% increase in cost, so as to realize the goal of “Green Development”.


Source: China Foundry Association (CFA)



Related News