Yuchai Thailand Factory Commences Operations as Part of its Globalization Efforts

Rhea-AI Summary

China Yuchai International (NYSE: CYD) has announced the commencement of operations at its Yuchai Thailand factory, marking a significant step in its globalization efforts. The factory's first K08 engine has been delivered to a customer, with senior executives from major companies attending the event. Yuchai Thailand will produce a range of diesel engines, natural gas engines, and new energy power products, starting with an annual capacity of 5,000 units, expandable based on market demand.

This expansion is part of Yuchai's accelerating globalization strategy, driven by growing cooperation between China and ASEAN countries. Yuchai's exports to ASEAN countries have reached over 20,000 units annually, representing a significant portion of its overseas sales. The Thailand factory is expected to strengthen partnerships, enhance product competitiveness, and increase market penetration in Southeast Asia.

Positive

• Expansion into Thailand market with new production facility
• Initial annual production capacity of 5,000 units, expandable based on demand
• Strengthened partnerships with major OEMs like Foton Motor
• Increased export volume to ASEAN countries exceeding 20,000 units annually
• Diversified product range including diesel, natural gas, and new energy power products

Negative

• None.

SINGAPORE, Aug. 27, 2024 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") one of the largest powertrain solution manufacturers through its main operating subsidiary in China, Guangxi Yuchai Machinery Company Limited ("Yuchai"), today announced that Yuchai Machinery Power System (Thailand) Co., Ltd. ("Yuchai Thailand") commenced production operations as the first K08 engine from the Thailand factory rolled off the production line and was delivered to its customer. Senior executives from Foton Motor, SANY, Zoomlion, and Liugong attended the commencement of production.

Yuchai Thailand will mainly produce a range of diesel engines, natural gas engines, new energy power products and other products. Various series of Yuchai products will be manufactured and the first group of products include the K08, S06 and S04 series of engines. Annual production capacity will begin at 5,000 units and will expand to meet future market demand.

Yuchai's globalization has been accelerating over the past decade due to the growing cooperation between China and ASEAN countries. Yuchai's direct and indirect export volume to ASEAN countries has increased to more than 20,000 units per year, accounting for a large share of Yuchai's overseas sales.

Yuchai Thailand further strengthens Yuchai's alliances with important partners such as Foton Motor, enhances product competitiveness, and increases penetration into the Southeast Asian markets.

Mr. Weng Ming Hoh, President of China Yuchai, commented, "Yuchai Thailand is an important stepping stone to increase Yuchai's share of the ASEAN markets, solidify our partnerships with OEM customers and enhance our foundation for greater global growth." 

About China Yuchai International

China Yuchai International Limited, through its subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), engages in the manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications in China.  Yuchai also produces diesel power generators.  The engines produced by Yuchai range from diesel to natural gas and hybrid engines.  Through its regional sales offices and authorized customer service centers, Yuchai distributes its engines directly to auto OEMs and retailers and provides maintenance and retrofitting services throughout China.  Founded in 1951, Yuchai has established a reputable brand name, strong research and development team and significant market share in China with high-quality products and reliable after-sales support.  In 2023, Yuchai sold 313,493 engines and is recognized as a leading manufacturer and distributor of engines in China.  For more information, please visit http://www.cyilimited.com.

Safe Harbor Statement: 

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements.  All statements other than statements of historical fact are statements that may be deemed forward-looking statements.  These forward-looking statements including, but not limited to, statements concerning China Yuchai group of entities' operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time.  China Yuchai cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China including those discussed in China Yuchai's Form 20-Fs under the headings "Risk Factors", "Results of Operations" and "Business Overview" and other reports filed with the Securities and Exchange Commission from time to time.  All forward-looking statements are applicable only as of the date they are made and China Yuchai specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

For more information:
Investor Relations
Kevin Theiss
Tel: +1-212-510-8922
Email: cyd@bluefocus.com

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SOURCE China Yuchai International

FAQ

What is the significance of Yuchai Thailand's factory commencement for China Yuchai International (CYD)?

The commencement of Yuchai Thailand's factory operations is a significant step in China Yuchai's globalization efforts, strengthening its presence in the ASEAN market, enhancing partnerships with OEMs, and increasing its potential for global growth.

What products will be manufactured at the Yuchai Thailand factory?

The Yuchai Thailand factory will produce a range of diesel engines, natural gas engines, new energy power products, and other products. Initial production includes the K08, S06, and S04 series of engines.

What is the initial production capacity of Yuchai Thailand's factory?

The initial annual production capacity of Yuchai Thailand's factory is 5,000 units, with plans to expand based on future market demand.

How has China Yuchai's (CYD) export volume to ASEAN countries changed in recent years?

China Yuchai's direct and indirect export volume to ASEAN countries has increased to more than 20,000 units per year, accounting for a large share of Yuchai's overseas sales.