Tokyo, Aug 6, 2009 (JCN) - Kawasaki Heavy Industries has agreed to establish a Chinese joint venture company, Changzhou Kawasaki and Kwang Yang Engine Co., Ltd., for the production and sales of general purpose gasoline engines. The agreement was penned on Aug 3 with Kwang Yang Motor Co., Ltd. (KYMCO) of Taiwan.
Kawasaki has been consigning the production of its general purpose gasoline engines to KYMCO's Chinese subsidiary, Changzhou Kwang Hsing Precise Machine Co., Ltd., since November 2008.
The new joint venture company will construct an engine factory in the Changzhou National Hi-tech District. Scheduled to go online in January 2010, the factory will have an initial production capacity of approximately 200,000 units per year.
The two-stroke engines and four-stroke single cylinder engines the factory produces will be sold to original equipment manufacturers via Kawasaki's sales networks in Japan, Europe, the U.S. and elsewhere.
The new company is positioned as Kawasaki's third production base for general purpose gasoline engines following those in Japan and the U.S. The joint venture will enable Kawasaki to build an even stronger production foundation designed to meet a diverse range of customer needs.
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