On November 18, 2010, Weichai issued an announcement stating that in order to solve the production bottleneck encountered by the company's development, the company plans to invest 600 million yuan to build an annual output of 40,000 tons of diesel engine key blanks construction projects.
According to the announcement, the main products of this project are high-quality rough parts such as engine block, cylinder head, flywheel, front cover, rear cover, bearing cover, and crankshaft. The project products are all necessary for the company's diesel engine products. The future development prospects are broad. After the project reaches production, it will effectively reduce the dependence on related parties.
The construction period of this project is planned to be 20 months, and it will strive to put into operation by the end of 2011. It is designed to produce more than 40,000 tons of blanks each year. When the designed production capacity is reached, the annual sales income will be 520 million yuan in tax, excluding taxation of 440 million yuan. After the project reaches its normal production capacity, the total annual profit is 89.72 million yuan, and the profit after tax is 67.29 million yuan. The investment recovery period of the project is 6.6 years before tax and 7.6 years after tax.
The investment was made by Weichai using its own funds, and the insufficient part was solved through bank loans or other methods.
The foreign investment still needs to be submitted to the general meeting of shareholders for deliberation.
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