Researching and developing diesel engine Changan Automobile's acquisition of Yunnei Power
According to Yunnei Power recently announced, the actual controller of the company Kunming SASAC has signed a "State-owned Property Rights Transfer Agreement for Yunnan Internal-combustion Engine Plant" with China Chang'an Automobile Group, and 100% of Yunnan Internal Combustion Engine Plant held by Kunming State-owned Assets Supervision and Administration Commission. Property rights were transferred to China Chang'an without compensation. Yunnan Internal Combustion Engine Plant is the largest shareholder of Yunnei Power, and Kunming State-owned Assets Supervision and Administration Commission is the controlling shareholder of Yunnan Internal Combustion Engine Plant and holds 100% of the property rights of Yunnan Internal Combustion Engine Plant. China Changan promised to use Yunnei Power as a platform, invest RMB 1 billion in five years to build a state-level enterprise technology center for diesel engine powertrains, develop high-performance energy-saving and environmentally-friendly diesel engines, and form a research and development, production, and export base for China Chang'an diesel engines. China Chang'an will invest more than RMB 5 billion to develop products and increase production capacity. The diesel engine production capacity of the Yunnan Internal Combustion Engine Plant will be increased from the current 600,000 units to 1.2 million units per year. The annual sales revenue is expected to reach more than RMB 12 billion. In the first phase, the newly added capacity is 300,000 units per year. It is expected to start construction in 2012 and put into operation by the end of 2013. In the second phase, the capacity will increase by 300,000 units per year. Construction is expected to begin in 2014, and it will be completed and put into operation in 2015.
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