Weichai Power Co., Ltd. FY2009
Performance for FY2009
(in million yuan)
|FY2009||FY2008||Rate of Change(%)||Factors|
|Sales||35,525.18||33,127.78||7.24%||-Starting from March, growth in the domestic real estate industry, road and bridge construction, and civil engineering projects increased mining and demand for energy, which lead to growth in the heavy-duty truck market.|
|Operating profit||4,528.24||2,625.59||72.5%||-Profits increased due to greater demand in the Chinese market
-Profits increased due to a recovery in the economy.
Joint-venture company-On November 30, 2009, Weichai Power Co., Ltd. signed a strategic partnership agreement with the Yangzhou city government. The agreement is designed to strengthen the city's auto parts business in terms of making it more competitive, and also expand Weichai's operations in the Yangtze Delta area. At the same time, Weichai also signed an agreement to create a joint-venture company with both Yangzhou Diesel Engine Co., Ltd. and Jiangsu Yaxing Automobile Group. The three companies established Weichai Power Yangzhou Diesel Engine Co., Ltd. on November 30 and held an opening ceremony on February 1, 2010.
Strategic partnership with BASF Catalysts (Shanghai)-The Company and BASF Catalysts (Shanghai) Co., Ltd. signed a basic agreement of understanding that will set the framework for them to form a strategic partnership. BASF Catalysts (Shanghai) is the Chinese corporate entity of BASF. Based on the agreement, Weichai Power, which is already using catalysts made by BASF, will be able to ensure a steady supply of the high-quality and environmentally friendly catalysts made by BASF. (From a press release, December 3, 2009)
Strategic commercial alliances with both Bosch and Borgwarner
-On July 9 2009, the Company signed agreements to strengthen its strategic commercial alliances with both Bosch and Borgwarner. Based on the strengthened alliance with Bosch per this latest agreement, the Company and Bosch will jointly develop diesel engines, which are compliant with the China lll and China lV emissions standards, and which will be equipped with Bosch's high pressure common rail systems.
Partnership with Beiqi Foton Motor-The Company and its long-term partner, Beiqi Foton Motor, agreed to develop even closer ties in the area of promoting the use of Landking brand engines, which are compliant with the China lV emissions standards. (From a press release, July 8, 2009)
Alliance with MANN+HUMMEL-In Jun 2009, the Company announced that it will further enhance its alliance with MANN+HUMMEL, which will continue to provide Weichai with filter products compliant with the Euro 3 Emission Standard. In addition, MANN+HUMMEL will work with Weichai Power in conducting joint development activities to engineer a variety of products such as filters, plastic cylinder head covers, plastic oil pans, etc. that are compliant with Euro 4 and Euro 5 Emission Standards.
R&D structure- The Company has R&D centers in China and Austria.
- Its Europe Technical Center, which was established in October 2003 with an investment of 100 billion yuan, developed Landking lll engines by using advanced technology provided by AVL. The new engines meet China lll emissions standards.
Product development-The Company announced in July 2009 that it will launch the new Landking engine, which meets the China lV emissions standards. The new engine, which was developed based on the Landking WP12 series 12-liter model, offers improvements in terms of advanced electronic control and fuel supply systems that achieve greater cost efficiency, reduced gas emissions levels, greater power, superior maneuverability, and further economic benefits. Weichai, jointly with Beiqi Foton Motor, with which it formed a comprehensive alliance in June 2008, will test the engine performance on actual vehicles.
Technological Partnership-The company licensed in production technology from VM Motori S.p.A of Italy so it can manufacture 10 types of multi cylinder engines. The two companies signed an agreement on the deal on December 9, 2009. Importing the new technology will allow Weichai Power to launch operations in the small engine market and enable it to offer engines ranging from 3L to 32L in size.
Capital investment projects for FY2009
(Automotive business only)
(in million yuan)
|Revamping production lines making steering products at Shaanxi Fast Gear Co., Ltd.||457.88||Under construction|
|Revamping production lines at Weichai Power Co., Ltd.||279.24||Under construction|
|Revamping production lines manufacturing high-power diesel engines at Weichai Power Co., Ltd.||210.19||Under construction|
|Revamping production lines manufacturing transmissions at Baoji Fast Gear
|Revamping production lines manufacturing transmissions at Shaanxi Fast Gear
|Revamping production lines at Zhuzhou Gear