Zhongnan Group acquired Qilu Bus Company

Relying on the financial strength of the successful listing in Singapore last year, Zhongnan Group recently announced the acquisition of Shandong Qilu Bus Company. This equity acquisition marks the Zhongnan Group expanding its car production. Shandong Zhongnan Group is a main glass production enterprise. Industry sources say that Zhongnan Group can fully play its listing advantages to integrate auto parts enterprises in the region and form complete supply chain enterprises as the core group.

Zhongnan Group will invest total of 1.26 billion Yuan to Qilu auto industry park project, which will invest 500 million Yuan in the first phase of the project. Hence, it will see the construction of 80,000 square meters of workshops and installation, debugging, automated production lines coating equipment. It is expected to be completed and go into operation in late 2008, reaching 5,000 units passenger car capacity initially. Phase 2 projects will be invested about 760 million Yuan, with a plan to be completed in 2013, adding product assembling, Welding and related ancillary plant equipment, and is aiming at an annual production capacity of 15,000 units passenger cars. After the completion of all projects, an annual sales income will reach 6 billion Yuan, and profits of 500 million Yuan.