Weichai Power unveils details of pact with Beiqi Foton

Shanghai, July 7 (Gasgoo.com) China's engine maker Weichai Power Co unveiled last week the details of strategic framework agreement with Beiqi Foton Motor Co, Chinese newspaper reports today.

Under the agreement, Foton will purchase more engines and other parts for heavy trucks from Weichai in the next five years; Foton promises not to develop similar engine products in competition with Weichai excluding Foton's own joint venture projects; Weichai will be Foton's only strategic partner in China, and the two sides will boost cooperation in the marketing and R&D (research and development) sectors, according to the China Times.

Weichai also said in its statement that it will become a strategic investor in Foton by participating in a share placement, though no details on the amount of shares it would buy were disclosed.

In April, Foton reached a preliminary agreement to set up a truck-making joint venture with Daimler AG. The two parties will finalize the deal after the Beijing Olympics in August, Beijing Auto Chairman Xu Heyi told Reuters last month.