Motorcycle group invests 40 bln yuan in Chongqing

Shanghai, July 7 (Gasgoo.com) China Ordnance Equipment Group Corporation (COEGC) announced on June 4 that it will add 40 billion yuan ($5.83 billion) to its investment in southwestern Chinese city of Chongqing, with 28 billion yuan of the money for automaking. In addition, the group will earmark 4 billion yuan for integrating its motorcycle businesses to ensure its title as the world's largest manufacturer of motorcycles.

The 28 billion yuan investment in car-making will be used for building an auto testing ground, an engine factory, Changan Ford's No. 3 plant, an auto logistics base and another project, said Yi Jiaxu, deputy general manager of COEGC in Chongqing last Friday.

COEGC is a dynamic military-industrial complex which makes both military and civilian products. Currently the group has 11 auto-making factories, with a combined annual capacity of more than 1.2 million units, and its sales ranking third or fourth among the country's automakers for many years.  

As the world's largest manufacturer of motorcycles, the group has been China's champion of motorcycle production and sales. It makes and sells motorcycles of Jialing, Jianshe, Sun and Qingqi (Light Ride) brands. The four motorcycle brands have a combined annual output of 6 million units. The group has over 10% of the global motorcycle market.

The sales revenues of COEGC's civil goods and services are expected to top 150 billion yuan this year. China Ordnance Equipment Group Corporation ranked 31th in the national list of top 500 industrial enterprises in 2007. Both the sales earnings and taxes of the group make up at least 20% of those by the Chongqing-based enterprises.