SINGAPORE, Dec. 14 /PRNewswire-Asia-FirstCall/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced
today that its main operating subsidiary, Guangxi Yuchai Machinery Company
Limited ("GYMCL") has entered into a joint venture agreement with Caterpillar
(China) Investment Co., Ltd. ("Caterpillar China"), a subsidiary of
Caterpillar Inc., to establish a new joint venture company in China to provide
remanufacturing services for and relating to GYMCL's diesel engines and
components and certain Caterpillar diesel engines and components. The new
joint venture company to be held 49%-51% by Caterpillar China and GYMCL
respectively, will use the remanufacturing technology of Caterpillar's
Remanufacturing and Sustainable Solutions Division ("Cat Reman") to provide
state-of-the-art remanufactured engines and components to customers around the
world.
Remanufacturing, one of the fastest-growing industries is a highly
sophisticated form of recycling taking end-of-life components and transforming
them into like-new products through salvage technology and state-of-the-art
remanufacturing practices. Remanufacturing is a cost-effective alternative for
customers as well as being an environmentally friendly repair choice which
reduces waste and minimizes the need to use raw materials to make new parts.
With this new joint venture, GYMCL and Caterpillar will become the
industry leaders in China by creating a platform to remanufacture diesel
engines and components which will provide lower-cost products to improve
customers' profitability. The remanufacturing process will enhance China's
sustainability and environmental preservation initiatives.
The Caterpillar China-GYMCL joint venture, once approved by the applicable
regulatory authorities, is the first remanufacturing joint venture for both
parties in China. The registered capital of the joint venture company is
US$20,000,000.
As a global leader in remanufacturing technology, Caterpillar already
recycles more than 100 million pounds of end-of-life iron annually, much of
which is used for remanufactured engine, transmission and hydraulic components.
Mr. Boo Guan Saw, President of China Yuchai, commented, "This joint
venture will allow us to leverage Caterpillar's remanufacturing technology to
provide high quality, low cost products for end-user customers. Our leading
market position, broad product line of diesel engines, manufacturing expertise
and large service network provide a solid foundation to grow the new joint
venture. We also share a vision of enhancing sustainability and improving the
environment while providing innovative cost-effective solutions to our
customers. This is a win-win for Caterpillar, China Yuchai, our customers and
our environment."
"This new cooperation further demonstrates our commitment to providing
advanced services to meet the needs of our customers. It is another example of
how China Yuchai distinguishes itself through adding innovative technology and
services," Mr. Saw concluded.
About China Yuchai International
China Yuchai International Limited, through its subsidiary, Guangxi Yuchai
Machinery Company Limited ("GYMCL"), engages in the manufacture, assembly, and
sale of a wide array of light-duty, medium-sized and heavy-duty diesel engines
for construction equipment, trucks, buses, and cars in China. GYMCL also
produces diesel power generators, which are primarily used in the construction
and mining industries. Through its regional sales offices and authorized
customer service centers, the Company distributes its diesel engines directly
to auto OEMs and retailers and provides maintenance and retrofitting services
throughout China. Founded in 1951, GYMCL has established a reputable brand
name, strong research & development team and significant market share in China
with high-quality products and reliable after-sales support. In 2008, GYMCL
sold approximately 372,000 diesel engines and was consistently ranked No. 1 in
unit sales by China Association of Automobile Manufacturers. For more
information, please visit http://www.cyilimited.com
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,"
"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 are based on current expectations or beliefs,
including, but not limited to, statements concerning the Company's operations,
financial performance and condition. The Company cautions that these
statements by their nature involve risks and uncertainties, and actual results
may differ materially depending on a variety of important factors, including
those discussed in the Company's reports filed with the Securities and
Exchange Commission from time to time. The Company specifically disclaims any
obligation to update the forward-looking information in the future.
For more information, please contact:
Kevin Theiss / Dixon Chen
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com
dixon.chen@us.grayling.com
SOURCE China Yuchai International Limited
Kevin Theiss, kevin.theiss@us.grayling.com, or Dixon Chen, dixon.chen@us.grayling.com, both of Grayling, +1-646-284-9409, for China Yuchai International Limited
