Chunlan officially changed its name to Xugong and entered the heavy-duty car horn

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Jiangsu's equipment manufacturing industry "leader" Xugong Group will enter the heavy-duty auto industry. On the morning of September 21, the signing ceremony of Nanjing Xugong Automobile Manufacturing Co., Ltd. was held at Yuhuatai District Government. This marks a substantial step in Xugong’s development strategy of building a world-class company with 100 billion yuan. Nanjing Chunlan Automobile Manufacturing Co., Ltd. officially changed its name to Nanjing Xugong Automobile Manufacturing Co., Ltd., marking the strong entry of Xuzhou Construction Machinery Group into the heavy-duty automotive industry.

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. Under the strong support of the provincial party committee and the provincial government and Xuzhou and Nanjing, Xugong and Chunlan reached an agreement, and XCMG acquired a 60% stake in Chunlan Automobile Company held by Chunlan for 170 million yuan.

Wang Min, chairman of XCMG, said that for XCMG, entering the heavy-duty auto industry has always been a long-term strategic concept. With the help of the adjustment of the core business of the Chunlan Group, Xugong and Jiangsu Chunlan finally negotiated, and the two parties finally reached an agreement for Xugong to transfer all 60% of the shares of Chunlan Motor Company held by Jiangsu Chunlan for RMB 170 million.

Due to the lack of large investment and the development of new products, in 2007, with annual sales of heavy trucks reaching 500,000 vehicles, Jiangsu Chunlan sold only 1,000 vehicles. After many negotiations, Xugong and Chunlan finally reached an agreement.

Xugong’s transfer of the equity project of Chunlan Automobile Co., Ltd. is the first true industrial capital operation project of XCMG, and it is the first time that Xugong has entered a new manufacturing field outside of the construction machinery.

It is reported that after entering the heavy-duty automotive industry, XCMG will introduce high-tech and management personnel, accelerate technological transformation, improve the level of technology, quality control and assurance capabilities, and do a good job in switching the country III product market. Within three years, it has reached the annual production capacity of 20,000 commercial vehicles originally designed; it strives to increase its annual production capacity to 50,000 within five years. This year will invest 500 million yuan to speed up the verification and switching of the National III engine and accelerate the development and manufacturing of new models.

"As we enter this field, we must increase investment in doing a good job of it." Wang Min told reporters that this year they will first invest 500 million yuan to accelerate the verification and switching of the National III engine and accelerate the development and manufacturing of new models. Two million years of production capacity of 10,000 new heavy trucks. By 2015, it will continue to invest 1.5 billion to 2 billion yuan, actively carry out international cooperation, introduce advanced product technologies, and actively expand into urban construction and sanitation vehicles, large-scale mining transport vehicles, special vehicles, military vehicles, and other fields to form core technologies. , improve core competitiveness.

Next year, XCMG will produce 5,000 heavy trucks annually and reach 10,000 in 2010. It will strive to increase the company's annual production capacity to 50,000 units in five years. In 2015, it will achieve a product sales income of 15 billion yuan, ranking first in China's heavy trucks. Group army.

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