CSR, Yuchai combine

Inaugural ceremony of CYSE held in Beijing

On March 7, CSR, Yuchai and Nanjun made a joint investment to establish CSR Yuchai Sichuan Engine Co., Ltd. CYSE in a bid to build a western engine research, development and manufacturing base in Ziyang, Sichuan and shape a model of China s machinery building industry in resource integration and market collaboration. The inaugural ceremony was held in Beijing.

In April and October 2010, CSR and Yuchai successively signed the Framework Agreement on Strategic Cooperation and Letter of Intent on Joint Investment and Cooperation. The cooperation between the two enterprises will be conducive to the mutual complementing of the two sides, accelerating the common development of the two enterprises, boosting the upgrading of the core technologies of Sichuan s enterprises and promoting Sichuan s local economic development.

Newly established CYSE, a manufacturer of medium and high-speed engines applicable to vehicles, locomotives, ships and land power generation, has a Phase 1 registered capital of RMB 300 million and a total investment of RMB 3 billion, will manufacture 200,000 high-speed engines and 700 medium-speed ones a year at full capacity, with an annual output value of RMB 10 billion and total taxes and profits of RMB 1 billion. In three to five years, Ziyang will be built into an internationally competitive and domestic first-class engine manufacturing base in the west.

CSR, China s largest rail transit equipment developer and manufacturer, enjoys prominent influence in world rail transit equipment manufacturing. In 2010, it ranked 2nd in sales in the global rail transit equipment industry. CSR Ziyang Co., Ltd., a primary subsidiary of CSR, was the subject of the investment cooperation.

Yuchai, China s largest engine developer and manufacturer, boasts an annual production capacity and sales volume of over 600,000 diesel engines and over 10,000 small and medium-sized construction machines, and is reputed as the capital of Chinese green power . Ziyang Nanjun Automobile Co., Ltd. is a major commercial vehicle manufacturer in China, the largest commercial vehicle manufacturer in Sichuan as well as a key large enterprise group cultivated by Sichuan.