Sinotruk (China National Heavy Duty Truck - CNHTC)

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Sinotruk to launch China III diesel engine in June

May 29, 2008 - China's top heavy truck maker, Sinotruk (Hong Kong) Ltd, is set to launch a national III (emission standards) disesel engine in June, according to the Sinotruk Executive Director Tong Jingen. He said the company has spent multi-million dollars on the development of the new engine, and now the self-developed product has met the China III emission standards.

The national III diesel engine independently developed by China's Sinotruk costs less than its foreign counterparts and this will enhance its competitiveness in the local and global markets. Starting on July 1, 2008, all vehicles sold in China's mainland must follow the China III emission standards.

Tong said he didn't know whether some customers will have bought the national II diesel engines before July and thus will affect the sales of Sinotruk's new engines, but he added that if they have bought the engine earlier, both the depreciation fees and monthly running fees will increase considerably.

source: Gasgoo.com

[mememe]

Sinotruk Increases Exports

2008-08-03

Sinotruk, the country's leading heavy-duty truck manufacturer, plans to sell one-third of its products to overseas markets by 2010.

The Jinan-based company will also quicken its pace in setting up manufacturing facilities overseas. "We have started our joint venture in Vietnam, and we are also in talks with foreign partners to establish some other facilities overseas," said Ma Chunji, chairman of Sinotruk.

In the first half of this year, the company exported over 6,300 heavy-duty trucks, earning $260 million. The figure has seen 35 percent growth year-on-year.

The group now has four major overseas markets, which are the former Soviet Union countries, the Middle East, Southeast Asia and Africa, said Ma.

It is targeting emerging markets as its vehicles are more competitive in these areas, he said. The truck maker now has no plan to develop vehicles for Europe and North America, he added.

Ma attributed the company's good performance in export to the efforts on technology improvement and a robust demand from overseas markets. He also admitted that the company was under pressure from soaring steel prices.

But a new engine, which meets Euro III emission standards, may help boost Sinotruk's export. The engine "will make their vehicles more competitive," Ma said.

"Overseas development is one important strategy for us. We will further improve our technology as well as management in the process of going abroad," said Ma.

The company has reached cooperation agreements with over 30 world famous auto parts companies, such as Delphi, ZF and WABCO. Among them ZF and VOSS have built plants in Jinan to directly supply products to Sinotruk.

The company has also set up a high-quality talent team and will further optimize product structure, said Ma.

Sinotruk started its overseas development strategy in 2004. Under the strategy, the company's exports achieved $323 million in 2005 and 2006.

In 2007, the company's export accounted for around 60 percent of China's total export of heavy-duty trucks. It was identified by the Ministry of Commerce and the National Development and Reform Commission as the export base for vehicles and auto parts.

This year Sinotruck aims to produce 125,000 units of heavy-duty truck and reach 45 billion yuan in sales revenue. The company also plans to take one-third of the domestic market by 2010, and upgrade one-third of its products through technology innovation by the same year.

Now Sinotruk is among the world's top five heavy-duty truck producers. The company has established its name by manufacturing China's first heavy-duty truck named Huanghe, introducing the Steyr series production technology.

Last year, Sinotruk raised HK$9 billion in an initial public offering in Hong Kong to fund expansion.

Sales of heavy-duty trucks in China rose by around 50 percent last year, double the pace of the overall vehicle market.

http://m.cri.cn/6/2008/08/03/67s848.htm

[mememe]

Sinotruk to export RTVs to Turkmenistan

August 12, 2008

Shanghai, August 12 (Gasgoo.com) China National Heavy Duty Truck Group Co., Ltd. (Sinotruk) will begin exporting 90 road transportation vehicles of chemical toxic substance to Turkmenistan, China's ministry of Commerce said on its official website Monday.

Sinotruk has won a $6 million export contract with Turkmenistan's State Concern Turkmengas to export road transportation vehicles of chemical toxic substance, according to the report, which marks the first time ever China has been exporting vehicles of this type to the Mid-Asia country.

State Concern Turkmengas is a state-run company conducting exploration, drilling, development, production and processing of gas and gas condensate throughout the entire territory of Turkmenistan, as well as transportation of gas.

Sinotruk is the leading heavy-truck maker in the Chinese auto industry. In the first half of this year the company sold 52,517 heavy trucks, a growth of 49.62 year on year.

http://www.gasgoo.com/auto-news/7395...kmenistan.html

[mememe]

Sinotruk sells 76,000 trucks in Jan-July

August 25, 2008

Shanghai, August 25 (Gasgoo.com) China National Heavy Duty Truck Group Co., Ltd.(Sinotruk) said it sold 76,000 heavy trucks from January to July this year and is on course to reach its 2008 sales target.

The truck manufacturer said it expects to produce and sell 125,000 heavy trucks in 2008, with some 20,000 units being exported.

Sinotruk was the world's fifth largest heavy truck maker in terms of sales in 2007. It achieved sales revenue of 37.1 billion yuan ($5.2 billion) last year, paying 2.8 billion yuan in taxes.

http://www.gasgoo.com/auto-news/1007...-Jan-July.html

[Zoned87]

How would these compair to American brands as far as pricing?

[mememe]

Sinotruk inks restructuring deal with Datong Gear

November 21, 2008

Shanghai, November 21 (Gasgoo.com) On Nov.18, China National Heavy Duty Truck Group Corp (Sinotruk) signed an agreement with Shanxi Datong Gear Group Co on strategic restructuring, Shanxi Youth Daily reported.

Sinotruk, the flagship of China's heavy-duty truck manufacturing industry, is expected to produce and sell 115,000 trucks this year with sales revenue to reach 50 billion yuan ($7.3billion). However, the heavy truck giant begins to see limited space for development as it has failed to form its own production base on engine and transmission, while the Shanxi-based Datong Gear Group is accomplished in transmission and gear production.

The cooperation between the two companies will solve the components shortage problems faced by Sinotruk and will also open up sales network for Datong Gear, Ma Anquan, a Datong executive said.

In the coming 5 years, Sinotruk will need 250,000 transmissions for its heavy duty trucks, 150,000 of which will be provided by the restructured Datong Gear and the rest will be made by Sinotruk itself.

The sales revenue created by the new Datong Gear Group is expected to reach up to 5 billion yuan in the coming five years and even climb to 10 billion yuan within seven years, the official said confidently.

Shanxi Datong Gear Group. Co. Ltd, one of the leading automotive components suppliers in China, specializes in manufacturing commercial vehicle transmissions and engine timing gears. Transmissions produced by Datong Gear supply for more than ten domestic automakers such as Dongfeng Motor, FAW, and Sinotruk and are also exported to countries like Iran, India and Russia.

http://www.gasgoo.com/auto-news/1008...tong-Gear.html

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Sinotruk launches AMT HOWO-A7 heavy truck.

China's largest heavy-truck maker Sinotruk launched its latest heavy-duty truck HOWO-A7 in Chongqing, selling between 257,000 yuan($37,628) and 330,000 yuan, Chongqing Economic Times reported.

The HOWO-A7 is mated with Sinotruk’s intelligent 16-speed automatic manual electronic controlled transmission (ECT) jointly developed by Sinotruk and world-leading vehicle control system maker Wabco. It is the first MT model of Chinese-made heavy truck.

As China’s latest heavy-duty truck, HOWO-A7 has undergone over one year of development and two years of repeated trial in various extreme environments with 50 test vehicles, using more than 130 patented technologies, said the president of Sinotruck Chongqing sales company.

HOWO-A7, a spot light of 2009 truck market.

HOWO-A7 was painstakingly created by SINOTRUK in 3 years and is the latest heavy truck after multiple experiments in different complex environment, which not only realized the dream of SINOTRUK to break through the market barrier and world top level, but also arose as a pioneer in the current down market.

In the second half of 2008, the impact of international financial crisis also hit the heavy truck industry of China. SINOTRUK gave full play to its technological, product and capital advantages, actively carried out strategic arrangement and finally realized sound development.

According to Mr. Ma Chunji, the Board Director of SINOTRUK, up to the end of October, SINOTRUK has accumulatively produced and sold over 100,000 heavy duty motors and 115,000 heavy truck engines, realizing sales income of RMB45.9 billion yuan, which was an increase of 47.1 percent year on year; and foreign exchange income of US$420 million, which was an increase of 26.4 percent year on year. SINOTRUK fulfilled the main business index by two months earlier, taking the lead in the industry.

source: english.chinatruck.org

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Sinotruk at Shanghai Show.

Hova:


Howo A7:

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MAN buys EUR560m stake in Sinotruk.

July 17, 2009
German truck maker and engineering company MAN SE said Wednesday that it would pay EUR560m for a 25 per cent stake in Sinotruk, China's largest manufacturer of heavy trucks, in a deal for the two parties to jointly tap into emerging export markets.

Through the deal MAN will become the company's second-biggest shareholder in Sinotruck, next to its parent China National Heavy Duty Truck Corp, which holding 51%.

Sinotruk aimed to produce the new trucks using MAN technology that the German company license to it within the next two to three years, said MAN CEO Hakan Samuelsson.

He added that the trucks would be targeted for export to markets including Brazil, Russia, Africa and India.

China National Heavy Duty Truck, which is controlled by the Shandong provincial government, first licensed MAN technologies in the early 1980s.

"Sinotruk and MAN will work together closely to shape our future and maintain our position as one of the leading heavy truck manufacturers," said Sinotruck Chairman Chunji Ma.

Sinotruk sold about 100,000 heavy trucks in 2008 and accounts for a market share of about 20% in China. In 2008, it posted revenue of approximately 26 billion yuan ($3.81 billion) and reported earnings before interest and tax of 1.25 billion yuan.
Gasgoo.com


Pictures of Howo A7:
http://www.360che.com/m8/2043_index.html
http://www.360che.com/s0/46_66_index.html

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Volvo to end Sinotruk tie, may resume Dongfeng talks.

Volvo AB has agreed to withdraw from its truck venture with the state parent of Sinotruk, moving closer to a possible tie-up with Dongfeng Motor Group Co, sources familiar with the situation said on Wednesday.

Volvo reached agreement with China National Heavy-Duty Truck Corp recently to pull out of their truck venture after production had been suspended for several years due to poor sales, a source at the Chinese truck maker said.

The move, which follows Sinotruk's new $800 million tie-up with Europe's MAN, could spur a partnership between Volvo and Dongfeng, another source with direct knowledge of the situation told Reuters.

Spokesmen for Volvo and Dongfeng could not be immediately reached for comment.

Dongfeng Motor, China's third-largest automaker, had detailed discussions with Volvo years ago to bring the Swedish company into its vehicle venture with Nissan Motor Co.

Dongfeng said in January 2007 that talks with Volvo could lead to an investment by the Swedish company in that venture, whose operations include the manufacture of heavy- and medium-duty commercial vehicles.

Dongfeng said at that time that, if a deal were to go through, Nissan could focus on the manufacture of passenger cars and light commercial vehicles in the venture.

"The two sides had no major disputes on most of the key issues at the time. The only obstacle was that Volvo had too many partners in China," said the second source.

Foreign automakers are generally allowed a maximum of two joint venture partners in China, but Volvo will still have two vehicle ventures even after its withdrawal from the tie-up with China National.

It makes buses in China with SAIC Motor Corp, China's biggest automaker, and with Xi'an Aircraft Industry (Group) Co, parent of Xi'an Aircraft International Corp

NEW PARTNERSHIP

Volvo, the world's second-largest truck maker, operates assembly plants in Thailand, Taiwan, Malaysia and India, supplying the regional and global markets.

However, its venture with China National never gained much traction, producing little more than 1,000 vehicles since it was established in 2003, according to its Chinese partner.

Volvo announced in February 2007 that it would take over Nissan Diesel Motor for $1.1 billion to strengthen its Asia operations, paving the way for expansion in the China market.

Rival Daimler AG, however, seems to have got a head start.

Earlier this year, Daimler secured a foothold in China's truck market when it agreed to set up a $929 million venture with Beiqi Foton, a mid-sized Chinese truck maker.

"Volvo really needs to move quickly if it wants a fair share of the China market. But before going back to the negotiating table with Dongfeng, it would have to deal with its two other Chinese partners properly," the second source said.

"It's like a new marriage. One needs to get a divorce first before entering into a new relationship."

http://www.reuters.com/article/reute...nnel=0&sp=true