Yuchai Thailand Plant Put into Operation, Creating a New Era of Globalization Strategy

Rhea-AI Summary

Yuchai Power System (Thailand) Co., , the first overseas factory of Guangxi Yuchai Machinery Co., (NYSE:CYD), officially opened in Samut Prakan on August 20, 2024. This marks a significant milestone in Yuchai's globalization strategy, aiming to boost growth in the Southeast Asian market. The factory will produce diesel, gas, and clean-energy engines, initially focusing on K08, S06, and S04 series.

Yuchai has been exporting to Southeast Asia since the 1970s, with recent annual exports exceeding 20,000 units. The company now has 21 overseas institutions and 495 service agents, with over 680,000 engines globally. Yuchai plans to expand further, including building new factories in Vietnam and advancing negotiations in Europe and the Middle East.

Positive

• Opening of first overseas factory in Thailand, expanding global presence
• Annual exports to ASEAN increased from 400 units in 2004 to over 20,000 units recently
• Established network of 21 overseas institutions and 495 service agents
• Plans for further expansion in Vietnam, Europe, and the Middle East

Negative

• None.

News Market Reaction

+0.66%

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+0.66% News Effect

On the day this news was published, CYD gained 0.66%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BANGKOK, Aug. 21, 2024 /PRNewswire/ -- Yuchai Power System (Thailand) Co., Ltd. officially opened in Samut Prakan amidst high expectations on August 20 local time. As the first overseas factory of Guangxi Yuchai Machinery Co., Ltd. (Yuchai) (NYSE:CYD), it represents a significant milestone in Yuchai's globalization strategy, highlighting Yuchai's further development in overseas markets. This establishment is expected to inject new momentum into Yuchai's growth, particularly in the Southeast Asian market.

At the opening ceremony, senior leaders of Yuchai, representatives from the Economic and Commercial Office of the Embassy of China in Thailand, key partners, and guests from various sectors witnessed this historic moment. Yuchai Power System (Thailand) Co., Ltd. mainly produces diesel engines, gas engines, and clean-energy engines. The initial products put into production include K08, S06 and S04 series. In the future, enabling the production of Yuchai 2-11L series products.

As one of the earliest engine exporters in China, Yuchai has been exporting its products to Southeast Asia since 1970s. Over the past half century, Yuchai has been accelerating its pace towards globalization. Especially over the last decade, aided by the open cooperation policy between China and ASEAN countries, Yuchai has given full play to its advantages in location, product and channel, becoming a pioneer in expanding the ASEAN market. Yuchai exported only 400 units to ASEAN in 2004. In recent years, export volume has increased to more than 20,000 units per year. As of now, Yuchai has set up 21 overseas institutions and 495 service agents, with over 680,000 engines held globally.

In the new era, taking the Thailand factory as an important starting point of its globalization strategy, Yuchai will further strengthen cooperation with key partners such as Beiqi Foton to enhance product competitiveness and expand its presence in the Southeast Asian market. Through this strategic layout, Yuchai aims to significantly increase its product share in overseas markets, further consolidating and expanding its market to lay a solid foundation for global business growth.

It is worth noting that Yuchai will cooperate with KIM LONG MOTOR, a subsidiary of FUTA Group, to build new factories in Vietnam. At the same time, strategic cooperation negotiations in Europe and the Middle East are also advancing. The first K08 engine from Yuchai's factory in Thailand was officially rolled off the production line and delivered to customers, marking the official launch of the global market blueprint jointly envisioned by Yuchai and its partners.

Li Hanyang, Chairman of Yuchai, stated that in the future, Yuchai will leverage the strategic support of the Belt and Road Initiative and the China-ASEAN Free Trade Area. Yuchai aims to build its Thailand factory into an advanced facility emphasizing high-end, intelligent, digital, and green manufacturing. This will support Yuchai's doubling plan and provide more high-quality products to customers, promoting high-quality development of the industrial chain in China, Thailand, and the ASEAN region.

Https://www.yuchai.com/
E-mail: csm@yuchai.com 

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SOURCE Yuchai

FAQ

When did Yuchai Power System (Thailand) Co., officially open?

Yuchai Power System (Thailand) Co., officially opened on August 20, 2024, in Samut Prakan, Thailand.

What products will the Yuchai Thailand plant produce?

The Yuchai Thailand plant will produce diesel engines, gas engines, and clean-energy engines, initially focusing on K08, S06, and S04 series.

How many engines has Yuchai (CYD) exported globally?

As of the press release date, Yuchai (CYD) has over 680,000 engines held globally.

What are Yuchai's (CYD) future expansion plans in Southeast Asia?

Yuchai (CYD) plans to build new factories in Vietnam in cooperation with KIM LONG MOTOR, a subsidiary of FUTA Group, and is advancing strategic cooperation negotiations in Europe and the Middle East.