Shanghai, December 3 (Gasgoo.com) Beiqi Foton Motor Co. Ltd, the largest commercial vehicle producer in China, has announced that it will invest 2.18 billion yuan ($319 million) in updating its truck technologies, expanding truck-making capacity and developing new pickup and SUV products, said sina.com today.
Of this massive investment, 1.188 billion yuan will be used to set up a medium- and heavy-duty truck manufacturing base in Nanhai city, Guangdong province, to expand Foton's truck production capacity, 682 million yuan will be spent on the project (H4) of updating the medium- and heavy-duty truck products, and 311 million yuan will go to the development of all-new pickup and medium-size (P/U201) SUV products.
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In the coming few months, Foton Motor's parent -- Beijing Automobile Industries Holding Co (Beijing Auto, Beiqi) -- will invest 10 billion yuan in three key projects, which include Foton-Cummins Engine venture, and Foton-Daimler heavy-duty truck venture. However, the recent announcement of Foton has not mentioned this JV project.
On August 7, Beiqi Fotn Motor and Daimler AG signed a letter of intent to form a 50-50 trucks joint venture. The deal will help the JV make medium- and heavy-duty trucks for China and overseas markets under Foton's Auman brand. The venture, which is awaiting the government approval and likely to kick off by mid-2009, may expand into making buses.
Last month Beiqi Foton Motor said its board has approved the issue of up to one billion yuan worth of five-year fixed-rate bonds. About 400 mln yuan of the proceeds will be used to pay down bank loans, while the remainder will supplement working capital.
