Weichai Power Co., Ltd. Business Report FY2010
Performance for FY2010 (in million yuan)
|FY2010||FY2009||Rate of Change(%)||Factors|
-demand of commercial vehicles increased；
-sales of engines for heavy-duty trucks reached 414,000, with an increase of 83%.
-Profits increased due to greater demand in the Chinese market
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.
-Zhuzhou Torch Spark Plug Co., Ltd., which is a subsidiary of the Company produced 134 million spark plugs in 2010, which was an increase of 37 percent from the previous year's volume. Sales rose 32 percent year-on-year, hitting the all-time high figure. The company thereby took the first place in the Chinese spark plug market for the eighth straight year. During 2010, the company started supplying spark plugs to the Chinese facility of Fuji Heavy Industries, Ltd., tapping into the market captured by Japanese major suppliers such as NGK and Denso. The company also won exclusive supply contracts to provide iridium and platinum plugs to Changan Ford, Chery Automobile, Brilliance Auto, and Haima Automobile. In addition, it began supplying high power cables to Geely Automobile. (From a press release, February 14, 2011)
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.
-On June 21, the Comapny invited Chinese manufacturers of heavy-duty trucks and buses, vehicle parts suppliers, and the media to explain its strategic business plans for its Green Power R&D Center and its facility designed to produce 1.5 million heavy-duty diesel engines. Its Green Power R&D Center, labeled the 5810 green power project, is aiming to generate sales of 50 billion yuan in 2012, 80 billion yuan in 2015, and 100 billion yuan in 2020. Its heavy-duty diesel-engine facility is planning to attain the annual production capacity to make 1.5 million units in 2015 and 2 million units in 2020. (From a press release by the Company, June 29, 2010)
-On June 2, the Company and Tongji University signed an agreement to collaborate on developing new energy powertrain systems. Based on this collaborative agreement between academia and industry, the Company will develop new-energy powertrain technology, hoping to commercialize it. (From a press release, June 3, 2010)
Capital investment projects for FY2010 (Automotive business only)
(in million yuan)
|Revamping production lines making steering products at Shaanxi Fast Gear Co., Ltd.||516.70||Under construction|
|Revamping production lines at Weichai Power Co., Ltd.||84.84||Under construction|
|Revamping production lines manufacturing high-power diesel engines at Weichai Power Co., Ltd.||236.13||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
|Extending production lines at Weichai Power Co., Ltd.||539.61||Under construction|