Yuchai and Vietnam King Long Automobile signed a comprehensive strategic cooperation agreement to jointly build an engine factory with a total investment of US$260 million
Following the official opening of Yuchai’s Thailand factory, Guangxi Yuchai Machinery Co., Ltd. (hereinafter referred to as “Yuchai Co., Ltd.”) and King Long Automobile Hue Co., Ltd. (hereinafter referred to as “Vietnam King Long Automobile”) under Vietnam FUTA Group signed a comprehensive strategic cooperation agreement in Vietnam on August 23, and the two parties jointly started the construction of an engine factory with a total investment of US$260 million.
The engine factory jointly built by Yuchai Co., Ltd. and Vietnam King Long Automobile is invested in two phases, and the first phase is expected to be put into production in the second quarter of 2025. The factory is equipped with the world’s leading, highly automated engine assembly production line, mainly producing Yuchai’s full range of diesel and natural gas engines, covering commercial vehicles, construction machinery, agricultural machinery, ships, power generation and other application fields, with an annual production capacity of more than 12,000 units. The completion of the new factory will greatly improve the level of Vietnam’s automobile industry.
The products produced by this engine factory will not only meet the installation needs of Vietnam King Long Automobile and serve the domestic market of Vietnam, but also aim to export to the ASEAN and Korean markets, helping Vietnam King Long Automobile and Yuchai to participate more deeply in the global supply chain competition.
At the signing ceremony, Wu Feihai, general manager of Vietnam King Long Automobile, and Wu Qiwei, president of Yuchai Co., Ltd., signed the cooperation agreement respectively, starting a new journey of cooperation.
On the day of the event, Vietnam King Long Automobile and Yuchai also officially launched the new King Long 99 sleeper bus equipped with Yuchai K11 engine, and delivered the first batch of 60 King Long 99 sleeper buses out of the 600 contracts to three major customers, FUTA Bus Lines, Heshan Company and Xinfada Company.
The sleeper bus equipped with Yuchai K11 engine has been tested for several months in actual operation on different terrains and steep road conditions in Vietnam. The results show that compared with the existing engines on some existing sleeper bus routes in the Vietnamese market, the fuel consumption efficiency of Yuchai K11 engine is 5-6 liters/100 kilometers lower, which can greatly reduce the operating cost of passenger transportation business and provide the best engine solution for the whole vehicle in terms of reliability and fuel consumption.
FUTA Group is a large enterprise group in Vietnam that mainly engages in passenger transport, freight, automobile assembly and production, real estate and other businesses. Its subsidiary Vietnam King Long Automobile is a company engaged in automobile manufacturing, assembly and sales.