26 Oct, representatives of Beijing Automotive Group, Dehong Dai and Jingpo Autonomous Prefecture Government and Yunnan Jing Cheng Group signed a contract of Beijing Auto Group Yunnan Production Base (Rui Li) Cooperation Agreement. It is another production base of Beijing Auto.
According to the agreement, Beijing Auto will invest 3.6 billion Yuan into Yunnan production base, which divided into 2 phrases. Total production capacity will mount to 150 thousand. The first phrase will be put into operation in 2015 for commercial car and SUV producing.
Relevant staff of Beijing Auto told reporter that “It has no detail for the base future to tell at this moment.”
However, the new cooperation agreement means that Beijing Auto international strategy has been put on table.
As it known, Beijing Auto has formed couple of production bases by massive merger and acquisition, such as North China production base around Beijing, South China production base around Zengcheng of Guangzhou, and Middle China production base around Zhuzhou of Hunan Province, Southwest production base around Yinxiang and East China production base around Zhenjiang.
With above production bases put into operation, production capacity is enlarging. According to Beijing Auto statistics, it sells more than 1 million in the first half year, and revenue exceeds 125 billion Yuan, which includes 8.1 billion Yuan profit, which have increased 26.9%, 34.5% and 18.6% respectively. Beijing Auto sales will exceed 2 million this year. The figure for last year was 1.7 million.
Some people point out that “Beijing Auto will be more closer to its ‘twelfth five year plan’.” As it known, Beijing Auto will realize3.5 to 4 million production capacity.
Heyi XU, President of Beijing Auto, said that “Yunnan is a very important bridgehead for national Southwest export. It will support Beijing Auto Group international strategy by building auto production base. It will face domestic and international market. ”
Yunnan Province plans to build “the third Eurasian Continental Bridge” this June. It will build transport hub around Kunming by rail, highway link China's western, central, eastern some regions westward from Kunming to Baoshan, Dehong Ruili or monkey bridge exit points, through Burma, Bangladesh, India, Pakistan, Iran, from Turkey into Europe and eventually arrived in the Dutch port of Rotterdam. It will across 17 countries across Asia and Europe.
