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Dongfeng Motor plans to jointly produce engines and parts with Xinchen Power
Dongfeng Motor announced on the evening of February 14, 2012 that after approval by the board of directors, it planned to establish a joint venture with Mianyang Xinchen Power Machinery Co., Ltd. to establish Changzhou Dongfeng Xinchen Power Machinery Co., Ltd. with a registered capital of RMB 250 million.
Both parties will invest in cash, each holding 50% of the equity. The joint venture company mainly produces and sells small engine assemblies and their parts and components.
Dongfeng Motor announced in November 2011 that it was discussing with Mianyang Xinchen Power Machinery Co., Ltd. to establish a joint venture company with a total investment of 800 million yuan in phases, and eventually reached an annual production and sales scale of 200,000 engines.
Dongfeng Motor Co., Ltd. closed at 3.25 yuan on the 14th, down 2.11%.