China Yuchai International Announces Changes to Joint Venture With Geely and Yinlun
China Yuchai International Limited (NYSE: CYD) announced today changes to its joint venture entered into by its main operating subsidiary, Guangxi Yuchai Machinery Company Limited with Zhejiang Geely Holding Group Co., Ltd. and Zhejiang Yinlun Machinery Co, Ltd.
Pursuant to the Equity Joint Venture Agreement entered into between GYMCL, Geely and Yinlun, two joint venture companies were to be established for the development, production and sales of a proprietary diesel engine and its parts for passenger vehicles. Subsequently in 2008, Jining Yuchai Engine Company Limited ("Jining Yuchai") and Zhejiang Yuchai Sanli Engine Company Limited ("Zhejiang Yuchai") were established in Jining, Shandong Province and Tiantai, Zhejiang Province, respectively. The main product of the joint ventures was to be a 4D20 diesel engine and the technology for the new diesel engine was to be purchased from Geely subject to certain specified design technology standards being met. GYMCL was the controlling shareholder with 52% in both joint ventures with Geely and Yinlun holding 30% and 18% shareholding, respectively.
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