China South Industries Group to build heavy trucks at Taiyuan

China South Industries Group Corporation ("China South") and the Taiyuan municipal government in Shanxi province signed a strategic agreement formalizing the creation of a production base in Taiyuan for the manufacturer of heavy-duty trucks. The two parts will make an accumulated investment of 700 to 800 million yuan by 2015, and it will reach a production capacity of 15,000 units by the end of next year.

Ma Junpo, deputy general manager of China South's marking department, said the Shanxi government will hold a share in the new plant.

The strategy to build auto base in Taiyuan has no relation with the corporation's plan to get listed in the stock exchange. China South has been prepared to develop commercial vehicles a long time ago, while it still can't be confirmed when the corporation will get listed. According to head of China South, negotiations with the China Securities Regulatory Commission are still underway. The government of Shanxi province has given great attention to the program and will help to pave the way for the implementation of the project.

China South is a state-owned enterprise directly under the administration of China's Central Government and an investment institution authorized by the State Council. China South has more than 40 industrial enterprises including four research institutes and three research and development facilities, and has established production facilities and marketing offices in over 30 countries with products distributed to over 100 countries worldwide. The auto products of the corporation cover minicars, sedans, buses, light vehicles, etc. It has already held industrial bases at Southwest and East China. The corporation is trying to consummate its products distribution in China by opening a new plant at Taiyuan. Moreover, the Shanxi province account for 10% of total sales of heavy vehicles in China.