On April 21^st, China South Locomotive & Rolling Stock Corporation Limited (“CSR”) signed the outline agreement of strategic cooperation with Guangxi Yuchai Group in Chengdu, Sichuan Province. In the outline agreement, the two parties proposed to construct a research and manufacturing base for powered equipment in the forthcoming three to five years through resources integration, with the target of realizing annual sales revenue more than ten billion Yuan so as to build the largest engine production base in West China.

CSR was considered to be the largest enterprise of researching and manufacturing rail transit equipment in mainland China. The company was mainly engaged in the research and development, manufacturing and sales of railway locomotives, passenger automobiles, trucks, China railway high-speed trains, urban rail and subway vehicles as well as key parts. On the other hand, Yuchai Group is the largest research and manufacturing enterprise of engines, possessing the capacity of producing and selling 600 thousands of diesel engines of various types each year. Through this cooperation, the two companies would organize a joint venture enterprise in Ziyang City, Sichuan Province, impelling the fast and healthy development of engine industry in China in a mutual cooperative way.

Zheng Hongchang, the President of China South Locomotive & Rolling Stock Corporation Limited demonstrated on the signing ceremony that, the cooperation between CSR and Yuchai would further improve the layout of automobile industry in Sichuan Province and also in the west part of China, which would be a powerful drive for the chained, matched and agglomerated development of related enterprises. The partnership of these two giants will definitely pull forward the leveling up of the core technologies of enterprises in Sichuan and the upgrading of the development quality of industries, which will also play a positively important role in the course of reconstruction and economic development of Sichuan after catastrophic earthquake in 2008.

About CSR

China South Locomotive & Rolling Stock Corporation Limited (“CSR”), is approved by the State-owned Assets Supervision and Administration Commission of the State Council and co-founded by China South Locomotive  and Rolling Stock Industry Group Corporation and Beijing Railway Industry Economic and Trade Company with a total equity capital of 7 billion. The company was established on December 28, 2007 with 16 wholly funded and holding companies and over 80,000 employees distributed in 10 provinces and cities around the country.

About Yuchai

Founded in 1951, YUCHAI group is located in Yulin, Guangxi, which is enjoying the fine reputation of being “ancient prefecture for a thousand of years & city in the south of the mountains”. Now it is possessed of 37 solely-owned, holding or equity-participating subsidiaries, employs a staff of 16000 and has total assets of RMB11.6 billion. Today YUCHAI group is the largest independent production base of diesel engines in the world and the largest manufacturer & exporter of the medium- & small-sized construction machinery in China, being known as “the Chinese capital of green power”.

The core business of the group is composed of six sectors, i.e. diesel engines, construction machinery, automobile parts, automobile chemical products, materials circulation & electromechanical products and special vehicles; meanwhile the group is also making outstanding achievements in fields such as hotels, tourism, real estate development and management etc. With an annual productivity and sales volume of 600000 diesel engines and 10000 units of medium- & small-sized construction machinery, YUCHAI occupies half of the high-grade diesel engine market in China and is one of the top three enterprises of Chinese road transport equipment. Over the past years, YUCHAI honorably stands in front ranks among Top 500 Chinese Enterprises, Top 500 Chinese Famous Brands, Top 500 Chinese Machine-building Enterprises and Top 100 Chinese Automobile Parts & Components Manufacturers.