Shanghai August 27 (Gasgoo.com) China National Heavy-Duty Truck Corp (CNHTC or Sinotruck), the country's third-largest truck maker, recently signed an agreement with Chengdu Wangpai Motor Group Co., Ltd. for construction of a 400,000-unit commercial vehicle base in Chengdu, capital of Sichuan province, Shanghai Securities News reported Friday.
Under the agreement, both sides will set up a new company with a total investment of 3 billion yuan ($441 million) to develop heavy, medium, light and mini commercial vehicles and other vehicle business in China.
Chengdu Wangapi will take 20% stake in the company, while Sinotruck will hold 80% stake and initially start a medium- to heavy-duty truck project using 1 billion yuan. The project is estimated to have an annual production capacity of 100,000 units.
The two sides will strive to achieve an annual capacity of 400,000 commercial vehicles by 2015, with the turnover reaching 40-50 billion yuan, of which medium and heavy trucks account for 100,000 units while the light and mini trucks account for 300,000 units.
