Volvo Trucks Sets Up China Joint Venture
The world's second largest truck maker, Sweden's Volvo
Truck, has signed a memorandum of understanding to manufacture
trucks in a joint venture with the China Heavy Truck Group.
The MOU was signed in Jinan in Shandong province, and
the formal agreement will be signed at the end of June
in Beijing.
The two sides have agreed to enter into a strategic alliance,
and have agreed to invest RMB1.6 billion (US$130 million)
in a joint venture company to manufacture heavy trucks
for the China market. Estimated annual production is 10,000
trucks. At the signing ceremony, Volvo representatives
said that even though China had been affected by the SARS
crisis, it would not affect their investments in China
in any way.
Founded in 1927, Volvo Trucks is the largest manufacturing
group in northern Europe, with annual sales of US$20 billion.
It is especially respected for its diesel engine technology,
and has manufactured more than 1 million trucks. In recent
years, it has teamed with Xian's Xiwo Manufacturing to
make luxury buses.
Jinan is a heavy industry center in China, and has been
a leader in the transportation sector.
Before you go, did you like this article?
If so, you can receive a free email newsletter version
each weekday. Sign up using the China Business Express
form on this page.
