BAIC to build special vehicle factory in Qinghai

Shanghai, November 13 (Gasgoo.com) Beijing Automotive Industry Holding Co., Ltd (BAIC), one of China’s state-owned automobile groups, has signed an agreement with Economic and Trade Commission of Qinghai province to build special vehicle production base in Qinghai for expanding BAIC’s market to the middle and south Asia, xinhuanet.com said, citing sources of Qinghai Economic and Trade Commission.

According to the agreements, BAIC’s subsidiary Beiqi Foton Motor Co. and Qinghai Jieshen Equipment Manufacturing Group Co. are to form a joint venture which is named temporarily as “Qinghai Foton Jieshen Special Vehicles Co”. The joint venture will focus on production of tractors, common flatcars, self-dumping cars, garbage trucks and oil-well vehicles based on Foton’s Auman heavy truck chassis production schedules.

The special vehicle project will be the first step of the venture, and then an original equipment manufacturer (OEM) will be established in Qinghai at a proper time, aiming at an annual capacity of 5,000 special vehicles, with expected investment of 250 million yuan and annual sales revenue of 1 billion yuan.

The project is an important strategy for Beijing Foton to enter the western China market by building a centre base in Qinghai and to further extend to the middle and south Asian markets.