Xugong Group invests 500 million in advance into heavy truck field


XCMG Group and Nanjing Dongchi Automobile signed an agreement to invest RMB500 million in the construction of a 100 billion yuan automobile industrial base in Nanjing Yuhuatai District Tiexinqiao.

The original Chunlan Automobile Factory in Tiexinqiao, Yuhuatai District, Nanjing, covers an area of ​​600 acres. Since the day before yesterday, the company’s property rights changes – XCMG’s acquisition of a 60% stake in Chunlan Automobile Co., Ltd. held by Jiangsu Chunlan for RMB 170 million. Co-founded Nanjing Xugong Automobile Manufacturing Co., Ltd.

Ten years ago, Chunlan Group cooperated with Nanjing Dongchi Automobile Industry Group to establish Nanjing Chunlan Automobile Manufacturing Co., Ltd., with each party accounting for 60% and 40% of the shares. It settled in Tiexinqiao Street, Yuhuatai District, and once produced 8,000 heavy-duty vehicles annually. About 1 billion yuan in revenue. In the increasingly fierce market competition, Chunlan Group implemented a strategic adjustment and decided to withdraw from CNHTC.

Wang Min, Chairman of XCMG Group, stated that XCMG will use its financial and technological advantages to enter the heavy truck field and will rejuvenate and develop Jiangsu's heavy truck industry with the original Chunlan automobile industry base. According to the plan, RMB 500 million will be invested before the end of this year, and RMB 1.5 billion to RMB 2 billion will be invested in the next 2-3 years. The construction of new factory areas will develop new products, and 5,000 vehicles will be produced next year, 10,000 the next year, and 20,000 by 2011. .


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