Anhui Jianghuai Automotive (600418) signed agreements with America’s Navistar International Corporation and NC2 Global, LLC on September 16, reports Shanghai Securities News.
NC2 Global, LLC is a joint venture of Navistar International Corporation and Caterpillar.
According to the agreement, Anhui Jianghuai Automotive and NC2 Global, LLC will invest a total of no less than 2 billion yuan to establish a joint venture with each holding a 50 percent stake in the JV.
The JV will have a registered capital of over 800 million yuan and manufacture medium and heavy duty trucks.
In addition, Anhui Jianghuai Automotive and Navistar International Corporation will establish another JV with a total investment of 1.8 billion yuan with each holding a 50 percent stake.
The second JV has a registered capital of 600 million yuan and its annual capacity is expected to reach 180,000 units of light diesel engines and 70,000 medium and heavy diesel engines.
Anhui Jianghuai Automotive recorded a 52.6 percent year-on-year increase in its auto sales volume, exceeding 300,000 units in the first eight months of the year.
Shares of Anhui Jianghuai Automotive rose 1.62 percent to trade at 10.68 yuan at 10:19.
