XI’AN, Shaanxi – Shaanxi Automobile Group Co., Ltd. (Shacman) and King Long Motor Group signed an agreement here on April 28 to set up a joint venture bus company, reported Auto Observers.
After three years of preparation, the new joint venture, Xi’an King Long Automobile Co., Ltd., was established. Xi’an King Long will commit to designing, developing, manufacturing and selling buses and providing aftersales services as well as importing and exporting self-developed buses. The collaboration this time will fully take advantage of the King Long bus brand and technologies and the chassis technologies of Shacman, said the report.
The three-phase project is targeted at becoming the largest new energy bus plant in Northwest China. After completion, the plant will boost the development of bus components industry in Shaanxi Province and bus markets in Northwest and Northern China, Mid Asia, and East Asia, according to the “One Belt One Road” developing strategy.
According to Fang Hongwei, chairman of Shacman, the new joint venture will focus on new energy bus development, form a range of traditional power, hybrid, pure electric and battery technologies system, and improve the low-carbon level, reliability, safety and stability of buses. Output value of Xi’an King Long is estimated to reach over ¥10 billion ($1.6 billion) by 2021.
The Shaanxi provincial Party committee and provincial government endeavor is adjusting the industry structure of the province and cultivating the automotive industry into a pillar industry, said Fang.