Sinotruck signs framework agreement with South African company

Shanghai. December 24 (Gasgoo.com) – China’s largest heavy truck maker, Sinotruck, signed a framework cooperation agreement with South African company Super Group, state media China News Agency reported today.

Under the agreement, Super Group will purchase 300 water tank trucks from Sinotruck and sell these tank trucks in South African and neighboring areas. Super Group will also buy additional 1,800 heavy trucks from Sinotruck in 2008 and prepare Sinotruck a full-scale invasion into South Africa market, the report said.

The framework agreement heralds Sinotruck’s historical invasion of South Africa market, the report said. Super Group is the largest logistic service provider in South Africa. Its business covers supply chain, logistics, retail supply. Last year, Super Group purchased $250 million worth products from Chinese market, up 30 percent from one year earlier.

The Shandong-based truck-maker is China’s largest heavy truck maker, which holds 20.8 percent of China's heavy truck market year to date. This year, the truck maker has exported over 13,000 heavy trucks, leading China’s heavy truck exports for three consecutive years. By mid-December, Sinotruck has produced and sold 100,000 heavy trucks.

On December 7 Sinotruck reached a cooperation agreement with Russian largest heavy truck maker Likhachev-AMO ZIL. The two companies will form a 50-50 joint venture, HOWO-ZLL, which will assemble and sell Sinotruck-made HOWO heavy trucks. The joint venture is expected to be able to assemble 250,000 heavy trucks annually by 2012.