Dongfeng once again shot up international cooperation. Last week, Dongfeng Motor Group Co., Ltd. and German Smiths AG signed a strategic cooperation project joint venture contract. Both parties will develop, produce and sell semi-trailers in China. Dongfeng also used this to expand the "big commercial vehicle" market territory. Swim Spa Swim Spa Vast Dragon Trading Limited , https://www.lgstove.com
According to the agreement, Dongfeng Motor Group and Smith Stock Company jointly established Dongfeng Smith Special Vehicle Co., Ltd., which is dedicated to the research and development, production and sales of semi-trailers. Each of the two parties owns 50% of the equity of the joint venture company. The joint venture company will be located in Wuhan Economic and Technological Development Zone. Dongfeng Smith's total investment in the first phase is 600 million yuan. It plans to use 5 years to reach the production and sales scale of 40,000 units.
Dongfeng Smith will initially focus on the mainstream market for semi-trailer transportation in China, and will launch warehouse barriers, barriers, vans, and low-bay products. It is expected that Dongfeng Smith will start production in the first half of 2014. The joint venture has developed a new product specifically for the Chinese market and is entering the testing phase. Dongfeng Smith will adopt an integrated design and use Dongfeng and Smith's trademarks. Dongfeng Smith will also set up an independent R&D institution within the joint venture company, and will conduct joint research and development with Dongfeng Commercial Vehicle Co., Ltd. on a new type of commercial vehicle project to achieve the best match and to simultaneously promote the market. Xu Ping, chairman of the Dongfeng Group, said that the implementation of this project will also promote the export of Dongfeng commercial vehicle tractors and drive the upgrade of Dongfeng special-purpose vehicle technology.
Smith, a 100-year-old family company, is Europe's leading manufacturer of trailers and bodywork. As early as 1935, Smith introduced the first trailer. Until now, in some regional markets, Smith has become synonymous with semi-trailers. With seven manufacturing bases in Europe and a production capacity of 110,000, Smith supplies products and services to markets such as Europe and the Middle East with its own sales network and an authorized dealer network. Sales for 2011 reached EUR 1.7 billion.
Through cooperation with Smith, Dongfeng will make up for the shortcomings in the field of special vehicles. At present, domestic mainstream heavy truck manufacturers such as FAW, Dongfeng, and CNHTC have less direct involvement in trailer production. It is understood that in the field of commercial vehicles, the Dongfeng and Volvo joint venture projects will soon be dusty.