Steyr, Audi, GM may make engines in Shandong

Shanghai, February 23 (Gasgoo.com) China Machinery Industry Federation (CMIF), Tsinghua University, Hebei Zhuoda Group, and Shandong province's Wendong municipality have recently signed an agreement in Beijing to build an international engine manufacturing base in Wendeng, Economic Information Daily reported today.

Covering an area of 200 hectares, the first stage of this project will have an investment of up to 8 billion yuan ($117 million) and its construction is scheduled for completion by 2012. The engine manufacturing base in Wendeng city's industrial park is expected to generate more than 10 billion yuan ($1.47 billion) in output value initially. Several world-leading engine production lines will be introduced to this base.

"We have signed letters of intent for cooperation with Austrian engine maker Steyr Motors, German carmaker Audi, and U.S. auto giant General Motors (GM) and other global companies," said Zhuoda Group chairman Yang Zhuoshu.

Steyr Motors is a world-leading engine manufacturer, who has cooperation with China's Weichai Power for the Chinese major engine maker  to prodcue the Steyr series of engines.

China's prestigious Tsinghua University is strong in machinery research and development (R&D) and its technical support is likely to ensure the high quality of engine products to be made in the Wendeng international engine manufacturing base.