AVIC invests in Liuzhou special vehicle maker

Shanghai, December 29 (Gasgoo.com) The China Aviation Industry Group Corporation (AVIC), the parent of Hafei Auto and Changhe Auto, has invested 75 million yuan ($11 million) in Liuzhou Chenglong Special Purpose Vehicles Co., Ltd in Guangxi province, said Shihua Financial Information today. This move is intended to build a larger manufacturing base of special vehicles in South China.

An AVIC executive said that following this investment, the strong R&D capabilities, excellent management, extensive sales networks and famous brand name will help Liuzhou Chenglong Special Purpose Vehicles Company to boost its market share and corporate status in China's fast-growing special vehicle segment.

Sources said that the 75-million-yuan investment is jointly made by AVIC Jincheng Group (55.29 mln yuan) and AVIC Investment Co., Ltd (22 mln yuan), who will hold 37.47% and 13.53% shares respectively in the Liuzhou Chenglong Special Purpose Vehicles Co., Ltd after it has received the investment. The other 49% will be held by Guangxi Fangsheng Industry Co., Ltd.

This investment project of the special vehicle manufacturing base is located in the Yanghe Industrial Park of Liuzhou city. After its construction is completed, the facility is expected to have an annual production capacity of 15,000 special vehicles.

Last year, AVIC also invested in Anhui Kaile Special Vehicle Company. AVIC was formed by the merging of AVIC I and AVIC II earlier this year, and the Chinese plane-making giant has two auto-making subsidiaries: Hafei Auto and Changhe Auto.