Yuchai Enters Into Strategic Agreement in Vietnam
China Yuchai International (NYSE: CYD) has announced a strategic cooperation agreement with Kim Long Motor Hue, a subsidiary of Vietnam's FUTA Group. The agreement includes technology licensing, component supply, and support services for constructing an engine factory in Vietnam.
Under the 15-year agreement valued at US$28 million in licensing fees, Kim Long Motor receives exclusive rights to manufacture and sell specific Yuchai engine models in Vietnam, with priority sales rights in other ASEAN countries and South Korea. The engines will primarily serve trucks, buses, and commercial vehicles.
Yuchai will provide technical support for factory setup and supply all engine assembly parts and service kits for the Vietnamese production. The agreement represents a strategic move to expand Yuchai's presence in the ASEAN-Korean trade regions.
China Yuchai International (NYSE: CYD) ha annunciato un accordo di cooperazione strategica con Kim Long Motor Hue, una filiale del gruppo FUTA del Vietnam. L'accordo include licenze tecnologiche, fornitura di componenti e servizi di supporto per la costruzione di una fabbrica di motori in Vietnam.
Nel quadro dell'accordo di 15 anni, del valore di 28 milioni di dollari USA in diritti di licenza, Kim Long Motor riceve diritti esclusivi per fabbricare e vendere specifici modelli di motori Yuchai in Vietnam, con diritti di vendita prioritari in altri paesi ASEAN e in Corea del Sud. I motori serviranno principalmente camion, autobus e veicoli commerciali.
Yuchai fornirà supporto tecnico per l'allestimento della fabbrica e fornirà tutti i componenti per l'assemblaggio dei motori e i kit di servizio per la produzione vietnamita. L'accordo rappresenta una mossa strategica per espandere la presenza di Yuchai nelle regioni commerciali ASEAN-Corea.
China Yuchai International (NYSE: CYD) ha anunciado un acuerdo de cooperación estratégica con Kim Long Motor Hue, una subsidiaria del grupo FUTA de Vietnam. El acuerdo incluye licencias de tecnología, suministro de componentes y servicios de apoyo para la construcción de una fábrica de motores en Vietnam.
Bajo el acuerdo de 15 años valorado en 28 millones de dólares estadounidenses en tarifas de licencia, Kim Long Motor recibe derechos exclusivos para fabricar y vender modelos específicos de motores Yuchai en Vietnam, con derechos de venta prioritarios en otros países de la ASEAN y Corea del Sur. Los motores se utilizarán principalmente para camiones, autobuses y vehículos comerciales.
Yuchai proporcionará apoyo técnico para la instalación de la fábrica y suministrará todas las piezas de ensamblaje de motores y kits de servicio para la producción vietnamita. El acuerdo representa un movimiento estratégico para expandir la presencia de Yuchai en las regiones comerciales de la ASEAN-Corea.
차이나 유차이 인터내셔널 (NYSE: CYD)가 베트남 FUTA 그룹의 자회사인 김롱모터 후에와 전략적 협력 계약을 체결했다고 발표했습니다. 이 계약에는 기술 라이센스, 부품 공급 및 베트남에 엔진 공장을 건설하기 위한 지원 서비스가 포함됩니다.
15년 동안의 계약은 2800만 달러의 라이센스 수수료로 평가되며, 김롱모터는 베트남에서 특정 유차이 엔진 모델을 제조하고 판매할 독점 권리를 부여받으며, 다른 ASEAN 국가 및 한국에서 우선 판매 권리를 가집니다. 이 엔진은 주로 트럭, 버스 및 상업용 차량에 사용될 것입니다.
유차이는 공장 설치를 위한 기술 지원을 제공하고 베트남 생산을 위한 모든 엔진 조립 부품과 서비스 키트를 공급할 것입니다. 이 계약은 유차이가 ASEAN-한국 무역 지역에서의 존재감을 확장하기 위한 전략적 움직임을 나타냅니다.
China Yuchai International (NYSE: CYD) a annoncé un accord de coopération stratégique avec Kim Long Motor Hue, une filiale du groupe FUTA au Vietnam. L'accord inclut des licences technologiques, la fourniture de composants et des services de soutien pour la construction d'une usine de moteurs au Vietnam.
Dans le cadre de cet accord de 15 ans, d'une valeur de 28 millions de dollars américains en frais de licence, Kim Long Motor reçoit des droits exclusifs pour fabriquer et vendre des modèles spécifiques de moteurs Yuchai au Vietnam, avec des droits de vente prioritaires dans d'autres pays de l'ASEAN et en Corée du Sud. Les moteurs serviront principalement aux camions, aux bus et aux véhicules commerciaux.
Yuchai fournira un soutien technique pour l'installation de l'usine et fournira toutes les pièces d'assemblage des moteurs ainsi que des kits de service pour la production vietnamienne. Cet accord représente un mouvement stratégique pour étendre la présence de Yuchai dans les régions commerciales ASEAN-Corée.
China Yuchai International (NYSE: CYD) hat eine strategische Kooperationsvereinbarung mit Kim Long Motor Hue, einer Tochtergesellschaft der FUTA-Gruppe aus Vietnam, bekannt gegeben. Die Vereinbarung umfasst Technologielizenzen, Komponentenlieferungen und Unterstützungsdienste für den Bau einer Motorenfabrik in Vietnam.
Im Rahmen der 15-jährigen Vereinbarung, die mit 28 Millionen US-Dollar an Lizenzgebühren bewertet wird, erhält Kim Long Motor exklusive Rechte zur Herstellung und zum Verkauf spezifischer Yuchai-Motorenmodelle in Vietnam, mit vorrangigen Verkaufsrechten in anderen ASEAN-Ländern und Südkorea. Die Motoren werden hauptsächlich für Lkw, Busse und Nutzfahrzeuge eingesetzt.
Yuchai wird technische Unterstützung für den Aufbau der Fabrik bereitstellen und alle Teile zur Montage der Motoren sowie Service-Kits für die vietnamesische Produktion liefern. Die Vereinbarung stellt einen strategischen Schritt dar, um die Präsenz von Yuchai in den Handelsregionen ASEAN-Korea auszubauen.
- Secured 15-year licensing agreement worth US$28 million
- Geographic expansion into Vietnam and priority access to ASEAN markets
- Guaranteed long-term revenue stream through component supply agreement
- Strategic entry into growing commercial vehicle market in Southeast Asia
- None.
Insights
This strategic agreement marks a pivotal expansion move for China Yuchai, structured as a comprehensive market entry strategy into Southeast Asia's growing automotive sector. The
The agreement's structure is particularly noteworthy for three key reasons:
- The 15-year technology licensing term provides a sustainable revenue stream while protecting intellectual property rights
- The exclusive distribution rights in Vietnam, combined with priority rights in ASEAN and South Korea, effectively creates a strategic foothold in markets with combined GDP exceeding
$3.5 trillion - The mandatory component supply arrangement ensures ongoing revenue beyond licensing fees while maintaining quality control
Vietnam represents an ideal entry point for regional expansion, given its rapidly growing automotive sector and strategic position within ASEAN. The country's participation in multiple free trade agreements, including the RCEP and CPTPP, provides advantageous access to broader markets.
The component supply mandate is particularly strategic, as it creates a captive market for Yuchai's parts while ensuring quality control over the final products. This arrangement could generate substantial recurring revenue over the 15-year period, potentially exceeding the initial licensing fees several times over.
The timing aligns with broader regional trends, as ASEAN countries are increasingly focusing on localizing automotive manufacturing while maintaining quality standards through partnerships with established manufacturers. This agreement positions China Yuchai to capitalize on this trend while managing technology transfer risks through controlled licensing and component supply arrangements.
Yuchai has granted Kim Long Motor the technology licensing rights for certain model engine series. These engine models will be manufactured primarily for trucks, buses and other commercial vehicles in
Yuchai will support the construction of the engine factory in
Mr. Weng Ming Hoh, President of China Yuchai, commented, "This cooperation agreement is an important project to further penetrate the important ASEAN-Korean trade areas, and supports our global growth."
About Kim Long (https://kimlongmotor.com.vn)
KIM LONG MOTOR specializes in automobile manufacturing, assembly, and trading; automotive parts and components manufacturing; and industrial park infrastructure trading. The KIM LONG MOTOR Hue Automotive Manufacturing and Assembly Industrial Zone is a comprehensive complex comprising bus, minibus, truck, passenger car assembly plants, and facilities for manufacturing engines, axles, gearboxes, chassis cutting, and automotive technology support industries.
About China Yuchai International
China Yuchai International Limited, through its subsidiary Guangxi Yuchai Machinery Company Limited ("Yuchai"), is one of the leading powertrain solution providers in China. Yuchai specializes in the design, manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, pickups, construction and agricultural equipment, and marine and power generation applications. Yuchai offers a comprehensive portfolio of powertrain solutions, including but not limited to diesel, natural gas, and new energy products such as pure electric, range extenders, and hybrid and fuel cell systems. Through its extensive network of regional sales offices and authorized customer service centers, Yuchai distributes its engines directly to auto OEMs and distributors while providing after-sales services across
Safe Harbor Statement:
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning China Yuchai group of entities' operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. China Yuchai cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in
For more information:
Investor Relations
Kevin Theiss
Tel: +1-212-510-8922
Email: cyd@bluefocus.com
View original content:https://www.prnewswire.com/news-releases/yuchai-enters-into-strategic-agreement-in-vietnam-302381002.html
SOURCE China Yuchai International
FAQ
What is the value of CYD's licensing agreement with Kim Long Motor?
Which markets are covered in CYD's agreement with Kim Long Motor?
What types of engines will CYD license to Kim Long Motor in Vietnam?
How long is the duration of CYD's licensing agreement with Kim Long Motor?
What support will CYD provide to Kim Long Motor's Vietnam factory?
