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Beiqi-Foton signs agreement with Tengzhong to produce special-purpose vehicles

BEIJING – Beiqi-Foton Motor Co., Ltd. (Beiqi-Foton) signed a Strategic Cooperation Framework Agreement on October 19 with Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. (Tengzhong) to produce special-purpose vehicles, according to a statement released by Foton on October 20.

The two parties will jointly set up a company in Shifang of Southwest China’s Sichuan Province, in which Beiqi-Foton will hold a 25 percent stake by injecting ¥10 million ($1.5 million) in cash and ¥10 million in intangible assets. Tengzhong is expected to provide its technological expertise on special-purpose vehicle manufacturing.

No additional details were disclosed by Beiqi-Foton, a domestic listed company and China’s largest light commercial vehicle maker, and Tengzhong, a private special-purpose vehicle and heavy machinery manufacturer based in Chengdu that earlier this year failed to acquire the Hummer from General Motors.

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