Dongfeng Smith JV Plant Laying a Foundation

www.chinatrucks.com: On November 29, the joint venture (Dongfeng Smith) of Chinese commercial vehicle manufacturer Dongfeng and German Smith completes the foundation-laying ceremony in Wuhan Economic and Technology Zone. The JV is another important step of Dongfeng Commercial Vehicle after the completion of new plant for Dongfeng heavy trucks. The JV will definitely push forward a rapid development of medium and heavy duty truck as well as trailer industries.

Foundation-laying ceremony

With an investment totaling 900 million RMB for the initiative phase, Dongfeng Smith is expected to reach an annual production of 40,000 units within five years. The plant is located in the Phoenix Industrial Park of Wuhan Economic and Technology Development Zone, covering around 150,000 square meters with workshops alone taking up 32,000 square meters. In the first phase, the production will reach 25,000 units and production will start in September 2014. The main business includes production of general semi cargo trucks and spare parts including stake truck, flat-bed trailer, van, etc.

The JV project contract was signed by Dongfeng and Smith on November 16 2012. According to the contract, the two company will jointly establish a new joint venture—Dongfeng Smith Special Vehicles Co Ltd, which will be committed to research and development, production and sales of semi-trailers. The two companies share 50 percent of the equity each. Domestic semi-trailer transportation will be the primary market for Dongfeng Smith. Independent R&D center will be established within the corporation to conduct co-development on new commercial vehicle with Dongfeng Commercial Auto to achieve the optimal match and marketing promotion.

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