Foton Motor and Cummins diesel engine project approved by NDRC

Shanghai. September 12 (Gasgoo.com) Foton Motor's 2.7 bln yuan ($357 mln) clean diesel engine project has won approval from National Developmeng and Reform Commission, the company annouced today.

The announcement said NDRC has approved the establishment of Beijing Foton Cummins Engine Co. LTD, which will produce clean diesel engines.

The project involves a total investment of 2.7 bln yuan ($357 mln). Foton Motor and Cummins will each hold a 50 percent stake in the whole project. Foton Motor will stake 252 mln yuan ($33 mln) in cash investment, which represents 25 percent of the project's total investment and Cummins China will stake 1.08 bln yuan ($143 mln) in cash investment, which represents 40 percent of the total investment.

The two parties has other forms of investment in this project: Foton will provide land use for the joint project while Cummins will provide technology.

As a government-backed environmental friendly project, the joint venture will enjoy duty-free imports treatment and exempted from value-added tax in imports.
 
The announcement also said the project is awaiting the approval by the Ministry of Commerce.