Yuchai Machinery (Guangxi) Group Co., Ltd.  - FY 2009

Business Highlights


-Yuchai Machinery (Guangxi) Group Co., Ltd. on February 17 won on a large contract to supply engines to Russia. The business is valued at 10 million US dollars.(From a press release, February 20, 2009)


Strategic alliances

- The Company agreed to form a strategic alliance with Zhongtong Bus Stock Holding Co., Ltd., a company with which it has had a longtime cooperative relationship. Guangxi Yuchai Machinery has been supporting Zhongtong Bus in developing chassis systems and also has been supplying the bus maker chassis components since 2003. The subject alliance is intended to strengthen the ties of the two companies, making them both more competitive in the global market. (From a press release,May 15, 2009)

-The Company signed a basic agreement setting the framework to form a strategic alliance with Guangzhou Automobile Group Co., Ltd. Based on the agreement, the two companies plan to fully collaborate in the area of powertrain systems and other components, cooperating in developing technology on their own for power systems used in buses, hybrid vehicles, and new-energy vehicles. The two companies intend to expand their collaboration to the medium- and heavy-duty commercial vehicle markets. They will also work together in jointly planning and developing new products, aiming to achieve 2 billion yuan in sales over the next five years. (From a press release,June 10, 2009)


<R&D facility>

Facility Overview
Guangxi Yuchai Engineering Research Institute - Established in 2007, this research institute conducts its development activities in four divisions: Product engineering division; Electronic control technology division; Test engineering division,  and Technology management division.
-The focus of its development activities is on engineering technology as practical business solutions to reduce emissions, and developing diesel engines for passenger vehicles.


New laboratories

-The Company and the State Key Laboratory of Engines, Tianjin University held a ceremony on March 8 to celebrate the completion of a new testing laboratory they had jointly established. The company and Tianjin University signed an industry-university cooperative agreement in 2007, enhancing the alliance they formed in the early 1970s. The new testing laboratory enables the two entities to jointly conduct research and development on combustion technology for diesel engines; along with R&D activities on automotive noise, vibration, and harshness; and on intake systems. (From a press release, March 10, 2009)

-Guangxi Yuchai Engineering Research Institute will establish a new development center in the Nanning High-tech Industrial Development Zone, Guangxi. It already held a ground-breaking ceremony at the 20,000-square-meter site on October 18. The company is investing 310 million yen in this project. (From a press release by the company on October 20, 2009)


Product Developments

Diesel/Natural gas bi-fuel engine

-The Company and a bi-fuel system supplier based in Shenzhen (Shenzhen HJ Technology Co.,Ltd) jointly developed the 6A240 diesel/natural-gas bi-fuel engine. The two main features of the new engine are: 1) accurate control of the simultaneous supply of diesel fuel and natural gas, made possible by the electronically controlled fuel supply system; and 2) more efficient combustion of fuel achieved by optimally controlling the air-fuel ratio. This engine addresses three issues, namely the environment, fuel efficiency, and frequent refueling. These bi-fuel engines are currently being supplied to Yutong Bus and will soon be featured on the new ZK6909H bus that will operate in Hainan. The ZK6909H bus has a rear-mounted engine and an overall length of nine meters. (From a press release, June 16, 2009)


Electronic control, overhead camshaft diesel engine
-The Company successfully started up its new YC4F electronic control, overhead camshaft diesel engine. The engine rotates at more than 3,800 rpm and has an output of more than 90kW. Equipped with an EGR cooling system, which improves the uniformity of the EGR rate, and an after-treatment device that uses diesel particulate filter technology, the engine meets the China IV emissions standard. The engine was designed specifically to meet the requirements of sport utility vehicles. Since the engine uses the same basic components as those installed in the existing 4F platform engines, it offers improved cost efficiency in terms of both production and management operations. The YC4F engine is scheduled to be released soon. (From a press release, September 29, 2009)


Compressed-air engine for hybrid vehicles

-The Company released its YC6A280-30 compressed-air engine for hybrid vehicles, the first of its kind in the world. The new engine, which was developed jointly between Yuchai and Brunel University in the U.K., is the world's first to power hybrid vehicles by using already available components and renewable compressed air.This engine will contribute to reducing both fuel consumption and CO2 emissions, thus improving the vehicle accelerating performance. (From a press release, December 21, 2009)

Investment Activities

Major investment projects


Project Targeted annual production capacity Budgeted amount (in million yuan) Status
Construction of a new crankshaft plant at Guangxi Yuchai Automobile Parts Manufacturing

To increase production capacity to make crankshafts

- Annual production capacity is expected to reach 300,000 units when the production line No.2 begins operating after the first phase of the construction project. (January 2008)

- After the second phase is completed, annual production level is expected to increase to 800,000- 1,000,000 units, production volume to total 1.5 billion yuan, and the number of employees to reach 2,000.

350 million yuan
(Phase one: 50 million yuan)
Production lines No.1&No.2 already started operating following the completion of the first phase.

The Company launched the second phase of the construction project in January 2008.
Yuchai Industrial Park project - The Company aims to produce products worth 10 billion yuan at the Industrial Park by 2010.

- The 22.83-square-kilometer facility consists of the power machinery and auto parts section, and the construction equipment section.

- In 2010, 50,000 people are expected to be working in the park.
- 15 affiliates already moved into the new Industrial Park.

Operations began in steps, with production volume having reached 5 billion yuan. (as of September 2008)
  Construction of a plant to make small diesel engines at Yuchai Power Machinery 200,000 small diesel engines 250 million yuan Production began in July 2008
Commercial production is scheduled to begin in August 2009
Infrastructure development at the Industrial Zone Constructing electric transforming station, roads, and plant buildings
550 million yuan This facility is under construction
Construction of a casting center - Three production lines to manufacture cylinder blocks and cylinder heads for 0.8-1.2 liter diesel engine

- Production volume is expected to reach 290,000 tons.
(First phase)
960 million yuan
Construction work began in July 2008
Planned operations launch
(Line No.1: Dec. 2009)
(Line No.2: Dec. 2010)
(Line No.3: Dec. 2012)
Building a new plant to make diesel engines at Xiamen Yuchai Engine 100,000 YC series diesel engines for light-, medium-, and heavy-duty vehicles 450 million yuan
Production began in July 2008
Commercial operations are started in September 2009
Construction of workshop, office, other facilities, and production lines at Guangxi Yuchai Bright Electric Co., Ltd. Annual output of 800,000 sets of high-power electrical auto motors 120 million yuan 2006-2010


Investment in China

-In March, Yuchai Machinery Ziyang Engine Co., Ltd., which was established in June 2008, started constructing its plant. The project, which will be completed in two phases, will involve a total investment of 600 million yuan and is scheduled to be completed in 2013. Even though the first phase is scheduled to be finished at the end of 2011, some areas of the plant will be completed by the end of this year, with production scheduled to begin accordingly. The plant will be able to manufacture 500 large engines for ocean-going vessels and 200,000 diesel and gasoline engines for medium- and heavy-duty vehicles. (From a press release, April 1, 2009)

-Xiamen Yuchai Engine Co., Ltd., which is a wholly owned subsidiary of the Company, started commercial production of engines after completing the first phase of its plant construction project on September 8. It is capable of producing 100,000 engines per year. The company is investing a total of 450 million yuan in this plant that will be built in two phases. The plant produces five series of diesel engines, namely the YC6A, YC6B, YC6J, YC6L, and YC6M, which cover an output ranging from 75kW to 350kW. Each of these engines is compliant with the China lll emissions standard, while offering large horse power, a high level of torque, low fuel consumption, and low emissions. They will be supplied mainly to truck, passenger-car, construction-equipment and agriculture-equipment manufacturers such as Xiamen King Long United, Xiamen Golden Dragon Van, Xiamen Engineering Machinery, and other companies.(From a press release, September 8, 2009)

-In November, Yuchai United Power Co., Ltd. started constructing a plant in the Wuhu Development Zone in Anhui Province. The new plant is designed to manufacture engines for heavy-duty vehicles. Yuchai United Power was established jointly by the Yuchai Group, China International Marine Containers (Group) Ltd. (CIMC), and Chery Automobile in August, 2009. The company is going to carry out construction of the plant in three phases, aiming to eventually raise the production capacity to 200,000 engines per year when the last phase is completed. Out of the 1.5 billion yuan planned for investment in this project, 800 million yuan was allocated in the initial phase, which includes establishing production lines to produce engine cylinder blocks and cylinder heads, and constructing a line to perform assembly work. When the first phase is completed at the end of 2010, the plant will be able to produce 60,000 engines per year. (From a press release, November 30, 2009)

-The Company and the city of Liuzhou agreed on a project for the Company to establish a diesel engine plant in the Liudong New District, Liuzhou, Guangxi Province. The Yuchai Machinery Group decided to build the new plant jointly with the Guangxi Lianzhuang Group, investing 1.5 billion yuan. After the plant is completed, it will be able to produce 7 billion yuan worth of diesel engines per year. (From a press release, March 24, 2010)