CSR and Yuchai jointly build largest western engine base

On April 21, the signing ceremony for a strategic framework agreement between CSR and Guangxo Yuchai Group took place in Chengdu. Party Secretary CSR Group and President of CSR Zheng Changhong and Yuchai Chairman and Party Secretary Yan Ping entered into a Strategic Framework Agreement on behalf of the two sides. The cooperation was of far-reaching significance to promoting the healthy and orderly development of China s machine building industry and boosting the influence of large enterprises and groups in the industry.

CSR, China s largest rail transit equipment developer and manufacturer, is mainly engaged in the R & D, manufacture and sales of railway locomotives, carriages, freight vehicles, EMU, metro vehicles and keyparts, and enjoys outstanding influence in global rail transit manufacturing. Yuchai, China s largest engine developer and manufacturer, boasts an annual production capacity and sales volume of 600,000 diesel engines in various models and 10,000 small & medium-sized construction machines, and is reputed as the Chinese Capital of Green Power . The cooperation will set a good example for the resource integration and market collaboration in China s machine building industry.

According to the source, CSR will establish a joint venture in Ziyang with CSR Ziyang as the subject of CSR in the cooperation with Yuchai. The two sides will jointly advance the fast development of the engine industry through resource integration and capital operation in a bid to build a major base for the R & D and manufacture of power equipment with an annual sales income of over RMB 10 billion in West China in three to five years.