MAN SE and Sinotruk (Hong Kong) Limited ("Sinotruk") yesterday announced the signing of long-term strategic cooperation agreements, under which MAN will become a strategic shareholder in Sinotruk, owning 25% plus one share of its capital for €560 million.
According to the agreements, MAN will license its TGA truck, engines D80, D20, D26 and other components for the production of a new truck series for seven years, as well as provide ongoing technical and management support to assist with production and localization efforts. This series will be manufactured at Sinotruk's existing plants in China.
The parent company of Sinotruk, China National Heavy Duty Truck Corp. (CNHTC), built China's first heavy truck in 1960 and purchased the truck technology of MAN's subsidiary Steyr as early as 1984. At present, Sinotruk is the leading producer of heavy trucks in China, holding approximately 20% of the market share and selling over 100,000 heavy trucks in 2008. In 2008, Sinotruk generated revenue of approximately 26 billion yuan and reported a net profit of 1.25 billion yuan.
Based in Germany, MAN is the world's third-largest heavy truck manufacturer. Its equity investment in Sinotruk will enable MAN to gain a sustainable foothold in China, which is the world's largest and fastest growing truck market.
For more information, please consult the original report in Chinese at:
http://www.china-cbn.com/s/n/000004/20090716/000000120789.shtml
(China.org.cn by Li Xiaohua July 16, 2009)
