Huayu and SAAS jointly build a heavy-duty automobile production base

Huayu Group will participate in the reorganization of SAIC Motor Corporation and invest in the construction of the largest heavy-duty vehicle production base in Shanxi. Recently, they have selected the land of the Taiyuan Economic Development Zone as the site of the new plant, and the construction of the new factory will soon begin. This construction project is an important measure in the "Year of Industrial Project Promotion" in Taiyuan this year.

Huayu Group is currently one of the largest private enterprises in Taiyuan, and Shanqi is a state-owned industrial enterprise with brand qualification. After the two companies will cooperate, it will build the largest heavy-duty vehicle production base in Shanxi. Huayu this time is also the first time involved in the industrial field.

Mr. Zhou, Assistant to President of Huayu Group Co., Ltd., briefed reporters on the reasons for Huayu’s involvement in the car. Mr. Zhou said that first of all, it is optimistic that Shanxi has a good consumer market for heavy vehicles. Shanxi's coal, coke, and iron and steel production is very large, and the amount of transportation is large. Road transport depends mainly on automobiles. Super-heavy vehicles on the national market have an annual demand of 100,000 vehicles, and Shanxi accounts for one-fifth. With such unique market conditions, why not do it?

Second, Shanxi has a mature industrial supporting environment. For example, Dazha Group produces gearboxes, Double Happiness produces tires, and many companies produce axles and other parts. Since the province has spare parts supply, the market conditions for autos are still perfect. And Shanxi also needs a leading company to take the lead to activate the development of the entire market. It seems that Huayu is still necessary for cars.

Mr. Zhou said that Huayu’s entry into the automobile field was only supported by the government, and cooperation with SAIC Motor could also integrate the resource advantages of both parties. Huayu has a good market operation capability, financing capacity, and management capability. It is one of the largest private enterprises in Shanxi Province and a cross-regional and cross-industry enterprise group. It is located in commercial, real estate, road passenger transport, investment, and hotel industries. Have involved. Shanqi is the only company that produces whole vehicles in the province. Due to the state-owned enterprise mechanism and other reasons, the output of automobiles is low, and capital, technology, talents, and management are among the country's downstream levels, but it also has its own brand of heavy-duty vehicles. The two cooperation should be able to play a cooperative advantage.

According to reports, Huayu's cooperation with SAIC's heavy-duty vehicle production plant will invest 1.3 billion yuan, mainly producing 20 to 32 tons of heavy-duty vehicles, with an annual output of 23,000 vehicles. In order to develop new products for heavy-duty vehicles, Huayu has established a technology center in Shanghai and now has 40 well-known experts and technical backbones. So how do you view the auto industry where investment is a bit hot? Mr. Zhou said that Shanxi has a large market demand and perfect industrial supporting conditions. They have great confidence in the market prospects. The Director of Enterprise Reform Division of the Taiyuan Economic Commission stated that the government has always supported the matter.