Chery Auto forays into commercial vehicle sector

Shanghai, January 24 (Gasgoo.com) A report by China International Marine Containers (Group) Co., Ltd (CIMC), the world's largest shipping container maker said yesterday that it had come to agreement on setting up a truck venture with two domestic partners, one of which involved Chery Auto’s stock-holding companies.

Zhongji Vehicle (Group) Corporation, a subsidiary of the listed group CIMC, had inked sponsors' agreement with Wuhu Tairui Investment Co., Ltd. and Shenzhen Jiusi Investment Co., Ltd. on January 9, 2009 about setting up CIMC Tairui United Truck Co., Ltd. in Wuhu, Anhui province of China.

The venture will have registered capital of 1.2 billion yuan ($175.5 million), with Zhongji Vehicles, Tairui Investment and Jiusi Investment taking up 45%, 45% and 10% stakes in it, respectively.

To prepare for the establishment of the truck company, the three sides agreed to establish CIMC Jirui United Heavy Industry Co., Ltd., also a 45-45-10 venture, with registered capital of 400 million yuan. The venture will take charge of the preparation for the establishment of the truck company. The venture will mostly make medium- and heavy- trucks, CIMC said in a statement.

The Tairui Investment Co, a Wuhu-based company focusing on investment on auto industry, is controlled by three shareholders — Wuhu Construction Investment Co, Wuhu Ruichuang Investment Co., and Wuhu Construction Company of Economic& Technological Development Zone, which are also the shareholders of Chery Automobile Company.

Industry insiders said Chery may fulfill its goal to creep into commercial vehicle sector in this way.