Core Viewpoint - China Yuchai International Limited has entered into a strategic cooperation agreement with Kim Long Motor Hue to enhance its presence in the ASEAN-Korean trade areas through technology licensing and support for an engine factory in Vietnam [1][3]. Group 1: Strategic Cooperation Agreement - The agreement includes technology licensing rights for specific engine models primarily for trucks, buses, and commercial vehicles in Vietnam [2]. - Kim Long Motor will have exclusive sales rights for the licensed engines in Vietnam and priority sales rights in other ASEAN countries and South Korea, along with aftermarket service rights [2]. - The licensing agreement is valid for 15 years with total licensing fees amounting to US$28 million [2]. Group 2: Support and Services - China Yuchai will provide technical services for the construction of the engine factory, including equipment installation and commissioning, at Kim Long Motor's expense [3]. - The company will supply all engine assembly parts and service kits for the engines manufactured by Kim Long Motor in Vietnam [3]. Group 3: Company Background - China Yuchai, through its subsidiary Guangxi Yuchai Machinery Company Limited, is a leading powertrain solution provider in China, specializing in a variety of engines for different applications [5]. - In 2023, Yuchai sold 313,493 engines, establishing a strong market presence and reputation for high-quality products and reliable after-sales support [5].
Yuchai Enters Into Strategic Agreement in Vietnam