China Yuchai enters cooperation agreement in Vietnam

China Yuchai (CYD) announced that Yuchai had entered into a comprehensive strategic cooperation agreement with Kim Long Motor Hue, a subsidiary of Vietnam’s FUTA Group. The scope of the strategic cooperation consists of the grant and provision of technology licenses, component supply and related support, and services for the construction of an engine factory at Kim Long Motor’s designated site in Vietnam. Yuchai has granted Kim Long Motor the technology licensing rights for certain model engine series. These engine models will be manufactured primarily for trucks, buses and other commercial vehicles in Vietnam. Kim Long Motor will have exclusive sales rights for the licensed engines in the Vietnam market, along with priority sales rights in other Asean countries and South Korea. Additionally, Kim Long Motor has aftermarket service rights in these countries. These licenses are valid for 15 years, with total licensing fees of $28M. Yuchai will support the construction of the engine factory in Vietnam by providing technical services for equipment installation and commissioning at Kim Long Motor’s expense. Yuchai will also supply all engine assembly parts and service kits for these engines manufactured by Kim Long Motor in Vietnam.