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Beiqi Foton to build truck plant in Sichuan
Shanghai. March 14 (Gasgoo.com) – The Beijing Automotive Industry Holding Corporation and its subsidiary Beiqi Foton Motor Co. signed a cooperation agreement with the government of Deyang city, Sichuan province early this week, the Shanghai-listed Beiqi Foton Motor Co. announced yesterday.
Under the agreement, Beiqi Foton Motor will build a plant to produce engineering vehicles, Shidai light trucks and Aoling light trucks in Deyang. The plant will have an annual capacity of 100,000 vehicles.
In addition to the plant in Deyang, Sichuan province, Beiqi Foton also plans to expand the capacity of a plant in Changsha to 200,000 units from 100,000 units.
Foton is also preparing to build a plant to produce middle and heavy trucks in Russia and the preparatory work is expected to be finished by the end of this year, according to Zhao Weichun, the company chief officer in charge of the company’s overseas operations.
Foton’s joint venture plant in Russia, which has a projected annual output of 100,000 vehicles, will concentrate on the production of middle and heavy trucks, according to a different company source.
Currently, Foton mainly sells middle and heavy trucks and Aoling light trucks in Russian market. The Chinese automaker sold 8,000 Aoling light trucks in Russia market last year.
Beiqi Foton sold 400,000 vehicles, up 16.9 percent from one year earlier, according to the company’s annual report. The sales figure has made the Chinese automaker world second largest commercial vehicle maker after Mercedes-Benz.
In 2007 Foton's sales revenue reached 27.86 billion yuan ($3.87 billion), up 40.53 percent from one year earlier. Last year, the automaker's light truck sales rose 11 percent to 319,000 units, which represent 28.9 percent of China’s light truck market.
"This is the ninth year in a row that Foton has successful defended its top seller position in China's light truck market,” said Zhao Jingguang, Foton's spokesman. "And this is the first time that Foton becomes a top light vehicle seller worldwide."
Last year, a total number of 2.49 million commercial vehicles were sold out in China’s domestic market and Foton grabbed 16 percent of this market. Meanwhile, Foton exported 30,000 commercial vehicles, up 238.78 percent from one year earlier.
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