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Sichuan Nanjun (Ziyang) Automobile (CNJ) - Sichuan Hyundai

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About Ziyang Nanjun Automobile

We are one of the largest automobile manufacturers in China. With registered capital of RMB 120 million, total assets of RMB 2.3 billion and fixed assets of RMB 520 million, we have more than 3,200 employees, and cover a land area of more than 3,700mu. Our main products include heavy, medium and light duty trucks and mini trucks as well as large, medium and light buses. Our annual production capacity is 100,000 automobiles presently, ranking the 19th in China's auto industry and the second in China's commercial vehicle industry.

Sichuan Nanjun Automobile Co., Ltd., our subordinate bus manufacturer, is able to produce 10,000 public buses and highway passenger vehicles annually; Ziyang Junxing Spare Parts Co., Ltd., our subordinate spare part manufacturer, focuses on the trade, logistics and transportation of auto spare parts; Ziyang Ruiyu Logistics Co., Ltd., our subordinate logistic company, is mainly engaged in storage, logistics, property management and transportation of commodity vehicles; Hunan Axle (Ziyang) Co., Ltd., our subsidiary enterprise, is able to produce 100,000 axles annually for medium and light duty vehicles; Chongqing Banglong Import & Export Co., Ltd., our authorized exporter, targets at overseas market, and strives to "bring benefit to the people, manufacture automobiles for the masses, seek continuous development and revitalize the national economy".

Our marketing and service network covers all provinces and cities in China, as well as in Southeast Asia, Central Asia, Africa and other countries and regions. Our products have been exported in batches to clients in Vietnam, Burma, Syria, Kazakstan, Algeria, Angola, Peru and other countries and regions. Our brand of "Nanjun" has become a popular brand of commercial vehicles in China and Southeast Asia.


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Ziyang Nanjun Automobile

Ziyang Nanjun signed agreement with Hyundai:

Hyundai to make buses, trucks in China

Korean Hyundai Motor has signed a joint venture with a Chinese commercial vehicle maker in its effort to build its legacy as the world’s largest auto market.

Hyundai, the nation’s No. 1 vehicle producer, said Friday that it reached the deal worth 500 billion won ($441 million) with Sichuan Province-based Ziyang Nanjun Automobile the previous day.

The Chinese car maker, established in 1998, is one who produces all kinds of commercial vehicles, and is the 11th largest with a total capital of 130 million yuan, more than 1200 employees and more than 400 different professional technicians.

It runs two plants, which are located in Chengdu and Ziyang and has an annual output capacity of 120,000 vehicles.

Through the contract, both companies will each invest 250 billion won to produce trucks, buses and their engines and they will also push forward the joint venture in sales, research and development and after-sales services.

The companies are expected to sell about 90,000 vehicles in 2011, but the number will increase to 300,000 by 2015 in a plant to be built in the province early next year, the Korean carmaker said.

They also plan to churn out a variety of vehicles fitted for local peculiarities.

“I firmly believe that with the combination of Hyundai’s technology and experience and Nanjun’s market potential, we will emerge as a noticeable and competitive player in the commercial vehicle segment of China,” Vice Chairman of the Management Board Sul Yeong-heung said.

“Through continuous investment and technical development, we will try to evolve into a leading company.”

Hyundai Motor, the world’s fifth-largest auto maker, expects that they will see a great deal of synergy in the Chinese market on the strength of the partnership.

Because of the Chinese government’s plan to develop the country’s wild western regions, the demand for commercial vehicles has been growing steadily.

In addition, it is seen as an significant action that Hyundai’s tie-up in Sichuan Province, the stepping stone of the government-led development projects in the areas, given that other rival motor companies do their businesses in major cities, including Beijing, Guangzhou and Shanghai.

“It is unavoidable for Hyundai Motor to enter the Chinese commercial vehicle market in order to expand its presence in the overall industry of China,” said Choi Han-young, vice chairman of the company’s commercial vehicle division.

The world’s most populated country is already the world’s single largest market for commercial vehicles, as well as passenger vehicles, with some 4.5 million commercial vehicles forecast to be sold there in 2010 alone, according to the firm.

Hyundai Motor is one of the most popular foreign brands for passenger vehicles in China with over 510,000 vehicles sold there in the first nine months of this year, up 23.8 percent from the same period last year.


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Sichuan Hyundai

The joint venture between Hyundai and Sichuan Nanjun Auto was officially founded in Ziyang, Sichuan on January 8, more than two years after the two sides signed the partnership agreement.

Named Sichuan Hyundai, the 50:50 joint venture plans to build commercial vehicles and engines in Ziyang. In phase one, it plans to complete the construction of a factory, already underway, by June 2014, which is designed to roll out 160,000 trucks, 10,000 buses, and 20,000 heavy-duty engines a year; investment will reach 5.4 billion Yuan. The long-term goal is to increase production capacity to 700,000 vehicles a year.

Later this year, utilizing the existing facilities at Nanjun, the joint venture will roll out the Hyundai County minibus, which directly targets Toyota Coaster (the last-mentioned has been built in Sichuan by FAW Toyota).

With 73,800 deliveries in 2011, Sichuan Nanjun Auto claims to rank 19th among automakers and 15th among truck-makers in China.

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Sichuan Hyundai

Sichuan Nanjun Automobile Group is withdrawing from its JV with Hyundai Motor, Sichuan Hyundai. A Sichuan govt. owned company, Sichuan Energy Industry Investment Group, will take over Nanjun's 50% stake in the joint venture.
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